Qatar bans cryptocurrency trading

Qatar Bans Cryptocurrency Trading; May Create National Digital Currency

Cryptocurrency trading bans in Qatar. This Middle East country has a population of over 2.5 million but doesn’t want to adapt to the future of currency. According to the recent media reports, the Qatar Financial Centre (QFC) Regulatory Authority says that virtual asset trading remains out of sight from the QFC at this time. The services include fiat-to-crypto and crypto-to-crypto trading, custody, and financial services related to virtual assets.

QFC’s Statement “Qatar Bans Cryptocurrency Trading” Defines

A virtual asset as anything of value that acts as a substitute for the currency. They can digitally trade or transfer. Furthermore, they used as payment or investment. This places any cryptocurrency in the bracket including Bitcoin, stablecoins, and any digitally transferred crypto asset in Qatar.

However, digital forms of securities or any other financial instrument under the purview of the QFCRA, the Qatar Central Bank, or the Qatar Financial Markets Authority, will still be allowed. Arab countries have always been cautious concerning their response to the emergence of new financial technologies like cryptocurrencies. Again they’re more cautious regarding concerns related to price volatility, money laundering, and terrorism financing. In fact, there is an outright ban in countries like Iraq, Algeria, Libya, and Morocco. Further, Kuwait’s Ministry of Finance and the Central Bank have previously stated that they don’t recognize Bitcoin.

The UAE, however, despite its restrictions, continues to be one of the most crypto-friendly countries globally. And one of the most advanced in the Arab World.

The Crypto Ecosystem in the Middle East

The recent ban of crypto-related services in Qatar comes at a time several countries in the region have resorted to these virtual assets, Iran being the latest to follow the trend. The Iranian President, Hassan Rouhani, recently called for Muslim states in the region to create their own digital currency to end the USD dominance.

Notwithstanding, many countries in the region are moving towards the digital currency space intending to create a hub similar to the Mediterranean islands. Bahrain recently announces its plans to set up favorable regulations in the country to boost crypto investment in the country.

The United Arab Emirates announced a possible launch of a national digital currency with a target to be the first blockchain-powered city in 2020. Moreover, many crypto exchanges including a state-owned company investment, MidChain, opened its doors to virtual assets trading.

However, the official announcement on Qatar’s cryptocurrency trading ban is yet to receive by the media.