Kuwait prohibits the use of crypto for payments and investments

The measures were implemented in a bid to combat money laundering, and they also included the prohibition of crypto’s recognition as a decentralised currency. Moreover, the general public was informed that companies are not allowed to provide any type of crypto-related services. However, according to a circular cited by coindesk.com, securities regulated by the Central Bank of Kuwait and other securities and financial instruments regulated by the Capital Markets Authority are excluded from this prohibition. 

The move comes in the context of the Financial Action Task Force's (FATF) global recommendations for crypto assets, as Kuwait is trying to become compliant with the regulator’s requests. Moreover, before the decision was made, the National Committee for Combating Money Laundering and Financing of Terrorism conducted a study into the cryptocurrency sector. 

It’s worth noting that countries are required to implement specific measures that prevent money laundering and adhere to the FATF's travel rule, but the FATF has not asked any country to ban cryptocurrencies altogether at the time of writing. The Capital Markets Authority has issued a warning for citizens regarding volatile, encrypted currencies that do not have legal status and revealed that violations of the prohibitions would result in penalties.

Other countries that have banned cryptocurrencies 

Even though cryptocurrencies are welcomed in some parts of the world, other nations have been more hesitant to support digital assets and decentralised finance. According to cloudwards.net, China is the largest country to ban all crypto on its territory, a move that started with a ban on local cryptocurrency exchanges in 2017 and slowly progressed to a complete ban on all crypto in September 2021. Unlike other countries, China’s reasoning behind the crypto ban was not entirely related to money laundering concerns but had more to do with the government’s worries that crypto could harm economic development in China. 

Another country that doesn’t allow cryptocurrency is Egypt, due to a ban issued in 2020. The country’s central bank highlighted that crypto’s value isn’t tied to any tangible assets and only recognised national currencies are allowed to be traded in the country. 

At the time of writing, cryptocurrency is also illegal in Nepal, Bangladesh, Afghanistan, Morocco, Algeria, and Bolivia.