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Will Kuwait allow using digital currencies in financial transactions?

digital currencies

Kuwait, (Business News Report)|| Kuwait is testing allowing the use of digital currencies in financial transactions and payment.

The competent authorities to form the country’s Capital Markets Authority (CMA), a committee that studies the regulation of financial technologies for securities activities.

A Kuwaiti newspaper quoted unnamed regulatory sources as saying that “the new committee submits technical reports aimed at reaching a final vision that serves the directions of the Kuwait CMA and in a manner that does not conflict with the supervisory procedures followed.”

Kuwait has placed digital currencies within the regulatory framework of the authority, and the work of the new committee is limited to being one of the means of payment and financial dealing available in the financial technology services that will be regulated and licensed by the CMA.

The sources indicated that it will be a condition that these cryptocurrencies are authorized by the relevant regulatory authorities in the country.

They also pointed out that the regulation of encrypted digital currencies falls within the authority of the Central Bank of Kuwait, so it will be required to approve the currencies that will be included in financial transactions by the Central Bank.

The CMA, in cooperation with the Central Bank, issued a joint awareness announcement a while ago about the risks of cryptocurrencies and virtual assets, the sources said.

The sources pointed out that the authority is following the developments of global markets and the mechanisms of dealing with these currencies, as well as the mechanisms of their trading.

Cryptocurrencies and virtual assets are receiving the attention of the CMA, but the fruits of such projects, ideas and plans have not yet been completed, and therefore it is necessary to provide sufficient guarantees in cooperation with the Central Bank in this regard, before engaging in any such project, the sources said.

Kuwait and the Sultanate of Oman are the only two Gulf countries that prohibit dealing with encrypted digital currencies and have issued continuous warnings during the previous years against dealing with these currencies; “Because this is a danger to citizens’ money.”

In a separate context, digital currencies fell strongly, on Tuesday morning, amid fears of a larger hike on interest rates from central banks around the world.

Bitcoin fell 5.3% to $39,831.99, down about $2,240 from its previous close.

Bitcoin, which is considered the most famous digital currency, fell by 17.3% from its highest level this year of $48,234, which it recorded on March 28.

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