Kuwait Bans Crypto Payments, Investment and Mining

• Kuwait has issued a circular prohibiting the use of crypto for payments, investment, and mining.
• The prohibitions are aimed to meet FATF requirements on preventing money laundering via crypto.
• Any violations of the prohibitions would result in penalties.

Kuwait Cracks Down on Crypto

The Capital Markets Authority of Kuwait has issued a circular that prohibits the use of cryptocurrency for payments, investment and mining with an “absolute” ban in order to comply with global recommendations from the Financial Action Task Force (FATF) related to money laundering prevention. This follows a study conducted by the National Committee for Combating Money Laundering and Financing of Terrorism.

Payment Prohibition

The circular places a prohibition on all digital asset mining and also states that companies are not allowed to provide any type of crypto-related services. It also strictly warns citizens about the risks associated with volatile, encrypted currencies that do not have legal status.

Investment Prohibition

Investing and using cryptocurrency as payment is prohibited in order to meet FATF’s requirements around money laundering prevention through virtual assets. Securities regulated by the Central Bank of Kuwait or other securities and financial instruments regulated by the Capital Markets Authority are excluded from this prohibition.


Any violations of these prohibitions will be met with penalties according to the notice released by the regulator.


Kuwait’s recent actions demonstrate its commitment to meeting FATF’s global recommendations for crypto assets while protecting its citizens from potential risks associated with virtual currency usage.