Kuwait’s Central Bank Bans Crypto Mining and Transactions
The Central Bank of Kuwait issued a warning in May 2021 about the risks of investing in cryptocurrencies, noting their volatility and the high electricity consumption of miners.
This adds an environmental dimension to the threat. As a result, the Kuwait Capital Markets Authority (CMA) has now announced an “absolute ban” on virtually all cryptocurrency transactions in the country, including payments, investments and mining.
The CMA also banned local regulators from issuing any licenses for companies to provide virtual asset services commercially.
However, the restrictions do not apply to securities and other financial instruments regulated by the Central Bank of Kuwait and the CMA.
This announcement from the CMA follows warnings by high-ranking Chinese officials. In February 2023, Huang Yiping, a former member of the monetary policy committee of the People’s Bank of China called for a reconsideration of the total ban on Bitcoin.
The CMA warned investors to be aware of the risks associated with cryptocurrencies, as they have no legal status and are not backed or supported by any government.
Furthermore, their prices are always driven by speculation. Ultimately, the CMA’s new rules are in line with efforts to combat money laundering and terrorist financing.
