According to Cointelegraph, the Kuwait Capital Markets Authority (CMA) has officially approved the law banning almost all crypto transactions in the country. This decision was announced on July 18th when the CMA, Kuwait’s main financial regulator, issued a directive regarding the regulation and issuance of virtual assets in the country.
Prohibition on Licensing
The directive confirms an “absolute ban” on major use cases and operations involving cryptocurrencies, including payments, investments, and mining. It also prohibits local regulators from granting any licenses allowing companies to provide virtual asset services as a commercial operation. Furthermore, the Kuwaiti government maintains that virtual asset transactions and cryptocurrencies do not have legal status and are not issued.
Aiming for Financial Security
Although there has been no official statement from the CMA regarding the crypto restrictions, this move by Kuwait is believed to be aimed at ensuring the country’s financial security and stability, according to local reports.
While some countries are tightening regulations on cryptocurrencies, others are adopting a more positive stance, embracing and regulating digital currencies.