The CMA announced a ban decision against all crypto operations in the country.
Cryptocurrencies are not legal assets in the jurisdiction of Kuwait but citizens trade crypto assets under the absence of any laws. The country’s central bank issued warnings against cryptocurrencies investment several times, to keep citizens away from this highly volatile market.
On 18 July 2023, Kuwait’s top financial regulatory body Capital Markets Authority (CMA) announced absolute prohibition on the big crypto focussed activities.
Issued circular ordered all the government agencies not to provide any type of licensee or regulatory approval for any company linked with crypto business.
“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,” the announcement read.
Here it is still unclear whether CMA will boost its efforts to ban Crypto at a big level, to keep citizens away from crypto trading/investment, or whether they will leave this sector to evolve under grey regions.
Some media reports confirmed that the latest released circular aimed to also prohibit crypto linked money laundering activities from the country.
Crypto ban in China
Earlier this China imposed a blanket ban on the crypto sector in 2021. The country’s central bank kicked out all the crypto companies from mainland China before Dec 2021.
Because of the decentralized nature of cryptocurrencies, it is not possible to ban cryptocurrency transactions and also people are free to access any decentralized crypto exchange via VPN services.
According to some trusted media reports, people in China are still active in the crypto sector. Some people are investing in cryptocurrencies, while some are using in illegal activities like gambling, drug dealing, etc.
It is also found that some people from mainland China visit Hong Kong to trade crypto assets, which is totally illegal as per China’s crypto ban measures.
Read also: Peter Schiff says his son is no more bullish on Bitcoin
Kuwait announced an absolute ban on crypto activities
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