- Article 15 of Law No. 106 of 2013 specifies the penalty for breaking Kuwait’s AML law.
- It forbids local authorities from providing licenses to businesses offering crypto services.
Kuwait is the most recent country to outlaw any and all cryptocurrency-related activity. Kuwait’s primary financial watchdog, the Capital Markets Authority (CMA), published a circular on the oversight and issuance of virtual assets on July 18.
In the circular, the CMA stated its commitment to an “absolute prohibition” of all transactions, investments, and mining involving cryptocurrency. In addition, the circular forbids local authorities from providing licenses to businesses that would enable them to provide services related to virtual assets.
Meanwhile, the notice specifies that the current ban does not apply to securities and other financial products regulated by the Central Bank of Kuwait and the CMA.
FATF Recommendation 15 Implementation
The CMA not only prohibited some activities but also mandated that users exercise extreme caution and be knowledgeable about the potential downsides of virtual assets. Also, the watchdog singled out cryptocurrencies with the claim that they “don’t carry a legal status and are not issued or supported.”
The regulator 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.”
Moreover, article 15 of Law No. 106 of 2013 specifies the penalty for breaking Kuwait’s Anti-Money Laundering regulations, which the regulator mentioned. Kuwait’s financial watchdog has said that the country’s new legislation is consistent with its efforts to prevent money laundering and terrorism funding.
The CMA also cited findings from a study conducted by the National Committee to Combat Money Laundering and the Financing of Terrorism as evidence of a sincere intent to implement FATF Recommendation 15.
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