Discover the captivating story of Kuwait as it takes the radical step of banning cryptos altogether. Delve into the reasons behind the ban and explore how it may shape the financial landscape of this Persian Gulf nation. An odyssey into the world of regulation and innovation.
In the mysterious Persian Gulf nation of Kuwait, a radical decision has been taken, creating an unprecedented odyssey in the world of cryptos. Kuwaiti authorities, including the Central Bank and the Capital Markets Authority, have jointly issued circulars announcing an “absolute ban” on the use of digital assets such as Bitcoin as a means of payment or investment.
The announcement, reported by Arabian Business, sent shockwaves through Kuwait’s financial community and beyond. Local companies are banned from offering crypto-related services, and crypto mining activities are also banned from the country.
All cryptos-related services?
The Kuwaiti regulator justifies this radical measure by strengthening the framework for combating money laundering and the financing of terrorism. The authorities claim that this ban is necessary to comply with the recommendations of the Financial Action Task Force (FATF). However, it should be noted that securities regulated by the Central Bank of Kuwait and other financial instruments regulated by the Capital Markets Authority are excluded from this ban.
This cryptographic odyssey reflects the challenges faced by many countries as they attempt to strike a balance between financial innovation and rigorous regulation. The Middle East, led by the United Arab Emirates, is attracting the attention of major crypto platforms such as Crypto.com and Deribit. Blockchain and Web3 innovation are also attracting growing interest in the region, as evidenced by Abu Dhabi’s “Hub71+ Digital Assets” initiative to support startups in the field.
As Kuwait embarks on its journey into the world of crypto bans, the financial landscape of this Persian Gulf nation is constantly evolving. The regulator’s decision may have a significant impact on the future of the Kuwaiti cryptosphere and its position in the global economic landscape. An intriguing and unexplored odyssey lies ahead for Kuwait, as players in the financial sector watch with curiosity the developments to come.