Kuwait's CMA Sets Parameters of Transactions related to Virtual Assets and Currencies
In a recently issued circular (No. 10 of 2023), the Kuwait Capital Markets Authority has set out clear parameters of prohibitions when it comes to dealings or transactions related to Virtual Assets or Virtual Currencies.
These prohibitions are:
- Virtual Assets cannot, in any way, be considered a means or instrument of payment.
- Virtual Assets cannot, in any way, be considered a means of investment. Such services cannot be provided to customers.
- Currently, licenses cannot be issued to any natural or legal person to practice any activity related to Virtual Assets.
- Virtual Assets/Currencies mining activities are prohibited.
Any act committed in violation of these prohibitions, will subject the violator to the penalties mentioned in the Kuwait AMLCFT Law (Kuwait Law No. 106 of 2013). Such penalties my included (but not limited to): fines that may be up to 500K KWD; suspension of activity, suspension and/or withdrawal of license, and other penalties.
Nadim Al Jisr joined Thomson Reuters in 2014 as a Content Specialist, then moved to oversee the Westlaw Middle East platform and manage its growth. Nadim holds a Bachelor’s Degree in Law and has more than 10 years of experience as a legal consultant and litigator in Lebanon, Saudi Arabia and UAE. Nadim is native Arabic speaker and proficient in English and French. Nadim is currently completing his Master’s Degree in Law. Nadim is currently the Editorial Lead heading the MENA Content Team.