Kuwait has taken a step towards regulating the use of cryptocurrencies within its borders. The country's financial authority has published a circular that explicitly prohibits the use of digital assets for investments and payments. This move is part of Kuwait's efforts to comply with global recommendations from the Financial Action Task Force (FATF), which aims to prevent money laundering and terrorism financing.
The circular also outlaws the mining of any digital assets, acknowledging their decentralized nature. However, it does not apply to securities governed by the Central Bank of Kuwait or other financial instruments regulated by the Capital Markets Authority.
Businesses in Kuwait have been warned that they are not permitted to offer services related to cryptocurrencies, unless they are explicitly exempted. The public has also been informed about the dangers of using unregulated and volatile digital currencies.