As per the recent news, the Markets Authority of the state of Kuwait has publicly announced to enforce an “absolute prohibition” of nearly all crypto activity throughout the nation.
🔥Reach more than 5 000 000 real investors via Twitter influencer marketing! 🔥
Kuwait to Monitor Issuance of Crypto Assets
The Capital Markets Authority (CMA), the primary financial regulator of Kuwait, released an announcement monitoring the surveillance and issuing of virtual assets in the Gulf nation on July 18.
Local Regulators Not Allowed to License Crypto Firms
The circular additionally refrains local regulators from providing licenses which enabled enterprises to offer virtual asset services for profit. However, the release states that the latest restrictions are not applicable on securities and other financial instruments governed by the Central Bank of Kuwait and the CMA.
In accordance with the regulator, Kuwait’s new restrictions coincide with what the nation is doing to prevent money laundering and terrorist financing. The punishments which will be imposed for breaking Kuwait’s anti-money laundering regulations are outlined in Article 15 of Law No. 106 of 2013.
Kuwait Regulator Asks Clients to be Attentive
As per the local media, the CMA’s crypto constraints are a component of a new inter-departmental crypto prohibition involving a number of Kuwaiti regulatory authorities. In addition to the prohibition, the CMA asked clients to be attentive and made them aware of the potential risks involved with virtual assets.
The government agency targeted cryptocurrencies, pointing out that these currencies “don’t carry a legal status and are not issued or supported.”
Speculative Assets
The authority added: “It is not linked to any asset or issuer, and that the prices of these assets are always driven by speculation that exposes them to a sharp decline.”
The CMA also made reference to the findings of a research study conducted by the National Committee for the Prevention of Money Laundering and Terrorist Financing on their commitment to implementing Financial Action Task Force recommendation 15.
This is not the first time when a nation has banned crypto, Kuwait has lined up with Afghanistan that has restricted it in 2022 along with China in 2021 in outlawing bitcoin transactions.
🔥Reach more than 5 000 000 real investors via Twitter influencer marketing! 🔥
