Kuwait banned crypto business

 

Kuwait, represented by the Central Bank and the Capital Markets Authority, made a radical decision to ban crypto business entirely. Companies are required to stop any activity related to cryptocurrencies: trading, mining, any services. Nationals and Kuwaiti companies are prohibited from Crypto outside the country.

Kuwait is not the most significant actor in crypto business, and its actions should not have a impact on the global market, but the motivation of decisions is worrying.

The decision to ban crypto business is based on the need to combat money laundering and recently published recommendations of the intergovernmental organization «Financial Action Task Force». Kuwait was not singled out in the area of cryptocurrency laundering, so there was no direct reason for radical measures.

However, following FATF recommendations carries significant risks on a global scale. Other countries may join Kuwait, and this will be serious. And if one of the leading world economies supports the global ban, then we’ll have a full-blown crisis.

Lado Okhotnikov, CEO of Meta Force spoke about the risks inherent in Kuwait’s decisions.

“If Kuwait leaves crypto markets, it is not scary, we will not notice it. The danger lies in the precedent. If two or three more countries support the ban, the market will already react. However, I do not believe that anyone from the G-7 and even from the G-20 will follow Kuwait. Too big a business interest lies in crypto business now. Even with the SEC, the main interest is not to ban, but to take control of the crypto...”

 

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