Nigeria Bundle Social Payment Platform Stops Crypto Exchange Operations, Why?

Previously, the state of Kuwait became the latest jurisdiction to ban almost all operations involving cryptocurrencies such as Bitcoin.

On July 18, Kuwait’s main financial regulator, the Capital Market Authority (CMA), issued a circular on the supervision and issuance of virtual assets in the country.

In the circular, CMA confirmed its commitment to an absolute ban on major use cases and operations involving cryptocurrencies.

Including payments, investments, as well as mining. The circular also prohibits local regulators from issuing any licenses that would allow companies to provide virtual asset services as a commercial business.

Meanwhile, securities and other financial instruments regulated by the Central Bank of Kuwait and the CMA are exempt from the latest ban, the announcement notes.

In addition to prohibitions, CMS also requires customers to be careful and aware of the risks associated with virtual asset transactions.

“It is not related to any asset or issuer, and the prices of these assets are always driven by speculation which makes them suffer sharp declines… The penalties for violations of Kuwait’s Anti-Money Laundering law are provided for in Article (15) of Law No. 106 of 2013, noted the regulator,” explained CMA, quoted by dark Cointelegraph, Thursday (20/7/2023).

Kuwait’s new regulations are in line with the country’s measures to combat money laundering and terrorist financing, the regulator noted.

The CMA also refers to the conclusions of the study by the National Committee for the Eradication of Money Laundering and the Financing of Terrorism regarding the commitment to implement the Recommendations by the Financial Action Task Force.

CMA’s crypto ban is part of a new inter-departmental crypto ban in Kuwait, which involves several supervisory authorities.

Similar circulars were reportedly also issued by the Central Bank of Kuwait, the Ministry of Trade and Industry, and the Insurance Regulatory Unit.