Kuwait has banned the use of cryptocurrency for payments and investment in order to fight money laundering. This was revealed by a circular issued Monday by Kuwait’s financial regulator.

Capital Markets Authority has also banned all mining of digital assets, denied the use of crypto currency as a decentralized currency and warned that any crypto-related service is not permitted.

The circular stated that “Securities and financial instruments regulated and supervised by the Capital Markets Authority and the Central Bank of Kuwait are exempt from this prohibition.”

According to the regulator, the prohibitions were enacted in order to comply with the Financial Action Task Force (FATF) recommendations for crypto-assets. They also followed a sector study by the National Committee for Combating Money Laundering and Financing of Terrorism.

The international watchdog told CoinDesk that although countries must put in place guardrails to prevent money laundering and follow the FATF’s Travel Rule which requires crypto firms collect and share information on transactions exceeding a certain threshold, the has not requested countries to ban cryptocurrency .

The regulator warned the public about the dangers of volatile and encrypted currencies without legal status. The notice warned that any violation of the prohibitions could result in penalties.

Read more: Kuwait Ministry of Finance Doesn’t Recognize Bitcoin

Parikshit Miishra is the editor.