Kuwait’s Regulator Warns Businesses of Consequences for Non-Compliance Towards Crypto Ban
Kuwait’s Capital Markets Authority, the regulator for financial institutions and securities in the Gulf nation, has reiterated its ban on crypto assets. The authority states that the rules align with enhancing efforts to combat money laundering and terrorist financing. The regulations also comply with Financial Action Task Force recommendations and standards.
- Kuwait’s regulator underscores five critical rules:
- Absolute prohibition of using virtual assets as a payment instrument/method
- Businesses in Kuwait are forbidden from engaging with virtual assets as an investment vehicle
- Crypto asset mining and related activities are strictly prohibited
- Kuwaiti citizens and businesses must abstain from participation
Any business violating the regulator’s rules may face penalties, including the potential loss of their business license. The regulator also urges Kuwaiti businesses to educate customers about the purported risks of crypto assets. The bulletin indicates that crypto assets are utilized beyond the borders of the Gulf nation. The regulator emphasizes that these rules are articulated in Article 15 of Law No. 106 of 2013.
Kuwait’s Capital Markets Authority insists that crypto assets “are not legal tender, are not issued or supported by any government, are not tied to any asset or issuer, and their prices are always driven by speculation that exposes them to sharp drops.”
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