Several regulatory authorities issued - the Central Bank of Kuwait and the Capital Markets Authority. The Ministry of Commerce and Industry, and the Insurance Regulatory Unit. Generalizations related to supervising each of them separately. It is strictly forbidden to use Virtual Assets as a payment tool/s or to recognize them as a decentralized currency in Kuwait. In addition to refraining from conducting transactions where virtual currency is used as a payment tool/method within the scope of this prohibition.
Circulars issued according to the results of the study prepared by the National Committee for Combating Money Laundering and Terrorism Financing. Regarding the commitment required in the field of implementing Recommendation No. 15 of the international requirements issued by the Financial Procedures Authority. Force (FATF), which prohibits dealing with virtual assets as a means of investment, Al Jarida daily reported.
Accordingly, it is necessary to refrain from providing this type of services to any of the customers. or issue or grant to any natural or legal person within Kuwait a license to provide Virtual Asset Services as a business for its own benefit, or on behalf of others. Noting that no licenses have been previously issued in this regard. The circulars also prohibit all virtual currency/asset mining activities.
Informed sources told the newspaper that virtual assets are a form of currency trading. It is a digital currency, as it is the closest analogy to the financial situation found in virtual assets.
The sources indicated that it was emphasized that customers are always aware of the risks that may result from dealing in virtual assets. Which is done through transactions that take place outside the State of Kuwait by customers. Especially cryptocurrencies , because they do not have legal status and are not issued or supported by any government.
It is not associated with any origin or source. And the prices of these assets are always driven by speculation that exposes them to sharp declines. The sources pointed out that the local regulatory authorities have warned and implemented awareness campaigns to reduce the risks of dealing or investing in virtual assets or the so-called virtual currencies. The most famous of them are “ Bitcoin , Ethereum, Dogecoin, and others” in light of this. From the continuous increase in invitations to invest in and deal with these virtual assets, which involve high risks and have various negative consequences for dealers. Because of its nature and the sharp fluctuations in its prices, in addition to not being subject to any supervisory or regulatory authority in the State of Kuwait.
