Kuwait’s Capital Markets Authority has put its foot down when it comes to crypt- and virtual assets. It has committed to an “absolute prohibition” of virtually all crypto operations in the country.
What and why does this mean for Kuwait?
Kuwait?s main financial regulator, the Capital Markets Authority has issued and confirmed what has been described as an "absolute prohibition". This cover all major use cases and operations involving cryptocurrencies, including payments, investments, and mining. They are also banning local regulators from issuing any type of permit that would have allowed a business to provide virtual asset services as a commercial business.
But, and there always is a but. Any securities and other financial instruments regulated by the Central Bank of Kuwait and the CMA are excluded from the latest prohibitions, the announcement notes. Meaning they can still make and put out any digital asset they see fit, such as a CBDC or any other thing they can come up with.
The interesting thing tho is at the same time they enact the ban, they also warn people against cryptocurrencies saying "don’t carry a legal status and are not issued or supported. ... 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.”. Seems to me they are trying to justify their ban by the classic "we know what is good for you" argument. But of course, they also added that the new regulations aligned with the country’s measures to combat money laundering and terrorist financing. Because now you can not argue against it or you are pro-terrorism. #FUD4LIFE
While Kuwait is not really a major part of crypto I still think it is annoying because now, other countries can validate their ban by pointing at Kuwait among the few others. As if just because many are doing something would make it right. But I guess if you are rich and live in Kuwait you can do as you please either way, so things like laws and bans don't really affect you. Ce la vie.
Another country added to the ban list. Any thoughts on this? If so please put them in the comment section below.
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