21 July 2023; MEMO: Kuwait has prohibited the use, trade, services and mining of cryptocurrencies within the country, imposing a blanket ban on the decentralised monetary systems.
In a directive issued on Monday by Kuwait's financial regulator, the Capital Markets Authority, it announced that it had imposed an "absolute" ban on all digital asset mining, and that it had prohibited cryptocurrencies as recognised decentralised currencies.
It also warned the public that companies and businesses are forbidden from providing any type of crypto-related services, including payments and investment.
It admitted, however, that "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 primary reason for the blanket ban is reportedly to be combating money laundering, and is apparently being imposed in compliance with recommendations of the global money laundering and terrorist financing watchdog Financial Action Task Force's (FATF).
Although the FATF does make it a requirement that cryptocurrency firms must collect and share data on transactions above a certain threshold, the watchdog has not recommended countries ban crypto, making Kuwait's decision likely a move to maintain the total regulation and centralisation of all monetary systems.
