Kuwait regulators have issued a statement prohibiting the use of cryptocurrencies for payments.
On July 17, an official circular released by the country's financial regulator banned individuals from using “virtual assets as a payment instrument/method or recognizing it as a decentralized currency in the State of Kuwait.”
Therefore an “absolute” ban has been put forward refraining anyone from “conducting transactions whereby virtual currencies are used as a payment instrument/method within the scope of this prohibition.”
Furthermore, under the new amendments, it is also deemed unlawful “to issue or grant any natural or legal person within the State of Kuwait a license to provide virtual asset services as a commercial business for him or on behalf of others.”
However, “securities regulated by the Central Bank of Kuwait and other securities and financial instruments regulated by the Capital Markets Authority are excluded from this prohibition,” the circular said.
The recent embargo follows a study into the sector by the National Committee for Combating Money Laundering and Financing of Terrorism, according to the regulator.
Moreover, Kuwait’s newest prohibitions are aimed at enhancing the country’s efforts to “combat money laundering and terrorist financing,” and are aimed at complying with the Financial Action Task Force's global recommendations for crypto assets.