- The Central Bank of Kuwait issued a warning to the public against crypto.
- The CBK warning is due to investors’ growing concern about digital currencies.
- CBK has partnered with the Kuwait Banking Association.
The Central Bank of Kuwait (CBK) has issued a warning to the public against crypto. The warning is due to investors’ growing concern about digital assets.
However, the CBK warning comes from the recent wild up-and-down movements in the values of the world’s leading cryptos. As a result, a lot of Kuwaiti investors caught notable losses on their crypto investments in the past week.
Moreover, CBK has joined the Kuwait Banking Association as part of its Diraya campaign. Also, the Central Bank is telling people that cryptocurrencies are not regulated and pose huge risks.
The Central Bank of Kuwait has warned in a recent statement:
Digital currencies aren’t real currencies, are highly risky, and threaten the global financial system.
Further, the CBK has warned against dealing in crypto assets. It comes when the crypto market has suffered its worst crash in over 12 months.
“Such dealings come at high risk and with an array of negative consequences for dealers given. The nature of these assets and the high fluctuation in their prices.” The central bank added.
According to CBK, digital currencies allow for anonymity, allowing criminals to engage in money laundering and other illegal transactions. Citing the Bank of International Settlements, the Central Bank added that digital currency platforms are also tricky to manage and are prone to cyber-attack.
Last week, China banned financial institutions and payment companies from performing any services connected with crypto transactions. It means that banks and online payment channels must not offer clients any service involving cryptos. This includes services like registration, trading clearing, and settlement.