- Regulator banned all crypto operations, including mining, payments, and investments
- Rules claimed to be in line with measures to fight terrorism, money laundering
Kuwait’s main financial watchdog, the Capital Markets Authority (CMA), has committed to “absolute prohibition” of crypto-related transactions, Cointelegraph wrote, citing a circular on supervising and issuing digital assets.
The CMA has banned all crypto operations, including mining, payments, and investments. Local regulators are also prohibited from issuing licenses for the provision of digital asset services.
Ban does not apply to centrally regulated securities
The prohibition does not extend to any financial instruments regulated by the Central Bank of Kuwait and the CMA. The watchdog advised customers to exercise caution and to be aware of the risks associated with digital assets, pointing out that crypto is not legal, issued, or supported.
Kuwait’s new rules are in line with the country’s measures to fight terrorist financing and money laundering, the CMA stated. Its crypto restrictions are a component of a new crypto ban enforced by a number of supervisory authorities in the Middle Eastern country.
Countries where crypto is banned in 2023
Many countries are at risk of landing on the so-called crypto grey list. Here are a few countries where crypto is currently illegal.
Bolivia
The first country to completely ban crypto in history was Bolivia. Legislators prohibited it back in 2014 over concerns that crypto transactions were having a negative effect on the country’s economy.
China
China is the biggest country to ban crypto. It enacted a crypto exchange ban in 2017 and a full-blown crypto ban four years later. The Chinese government is worried about a crypto shadow economy harming economic development.
Nepal
Nepal is the second country on this list to ban crypto in 2021. The country’s central bank declared use, trade, and mining of crypto illegal for fear of scams.
Afghanistan
The Taliban banned crypto in September 2021. The country’s already ailing economy collapsed after the takeover by the Taliban, and crypto became practically the only way to do business with the outside world. The extremists retaliated by outlawing crypto and enforcing harsh penalties on its trade and use.
Bangladesh
Bangladesh outlawed all crypto-related activity in 2017. The government claimed crypto transfers violated anti-terrorism and anti-money-laundering laws.
Egypt
Egypt banned crypto in 2020. The central bank only recognizes fiat and points out that crypto has no tangible value.
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