On Tuesday, July 18, Kuwait made a disturbing announcement that resonated with local cryptocurrency supporters. The Kuwait Capital Markets Authority (CMA), or CMA for short, announced a “total ban” on all virtual asset operations in the country.
Kuwait’s radical steps against the crypto market
Kuwait joins the ranks of countries that have taken radical steps against crypto. The CMA has issued a circular that puts an end to cryptocurrency payments, investments and mining, leaving no loopholes that could be used to circumvent the ban. It also shifts responsibility to local regulators, prohibiting them from issuing licenses for cryptocurrency-related services.
The reasons for this revolutionary decision are multiple. According to the regulator, cryptocurrencies have no legal status, nor often a specific issuer. Their prices are driven by speculation, which exposes them to fluctuations and sharp drops.
Kuwaiti authorities therefore appear to be approaching cryptocurrency with distrust, fearing its impact on the country’s economic stability.
Coordinated action against cryptocurrencies
It is also worth noting that the CMA has not been indifferent to the threats of money laundering and terrorist financing. The new regulations are in line with national measures to combat these crimes, underscoring the firm and resolute nature of the regulator’s actions. It is made clear that in the face of these challenges, cryptocurrencies are not a suitable alternative for Kuwait.
The CMA is not just limiting itself to bans. The regulator attaches great importance to customer awareness and education about the risks associated with investing in cryptocurrencies. This initiative aims to make the public aware that investments in crypto-assets are not only risky, but also lack any guarantee of legal security.
It is also extremely interesting to note that the restrictions imposed by the CMA appear to be part of a larger plan. Leaked information from Kuwaiti institutions reports that similar bans have been issued at the Central Bank of Kuwait, the Ministry of Trade and Industry and the Insurance Regulatory Unit. It appears that the entire Kuwaiti government has united in an effort to eliminate the impact of cryptocurrencies on the country’s markets.
Kuwait decides to stay behind
Kuwait’s decision has stirred up a lot of controversy internationally. Many crypto-enthusiasts believe that the ban is too harsh and does not take into account the positive aspects of the technology. Nevertheless, the decision shows that the topic of cryptocurrencies stirs up a lot of emotion in the world, and the debate is still far from over.
