Authorities of the Gulf country Kuwait have issued a new circular on digital asset trading in the country. According to local media reports, Kuwait will impose serious sanctions on domestic cryptocurrency activities.
The circular, shared jointly by bodies such as the Central Bank of Kuwait and the Capital Markets Authority, strictly prohibits the use of cryptocurrencies as a means of payment in the country. Authorities also banned any virtual assets from functioning as an investment vehicle. This means that, similar to China, Kuwait has imposed an all-out crypto constraint.
Although there is no explanation from the government after the circular, local sources interpret these bans in terms of FATF rules and the fight against money.
Kuwait’s decisions about cryptocurrencies are not limited to trade. Authorities have also imposed various restrictions on cryptocurrency mining.
Warning to Investors!
In addition to the bans, the government agencies of the Gulf country shared a loud warning message for crypto money investors. Officials emphasized that virtual assets do not have a state support and are quite risky.
According to the circular, Kuwaiti institutions do not approve any business in virtual asset management. Officials underlined that such activities are strictly prohibited in the country.
