The Middle Eastern country, Qatar, has issued banned on all services involving cryptocurrencies. Qatar’s watchdog – QFC (Qatar Financial Centre) Regulatory Authority has released a statement as per which crypto-based services should not be conducted in or from the QFC. The service includes fiat-to-crypto and crypto-to-crypto trading, custody, and financial services related to virtual assets.
However, the ban doesn’t cover digital forms of securities or other financial instruments that are regulated by the watchdog. The step has been taken in accordance with QFC Law No. 7 of 2005 and the FSR (Financial Services Regulations), the authority reported.
In 2018, the Central Bank of Qatar marked bitcoin trading as illegal in the country as it didn’t involve guarantors or assets. Qatar’s Central Bank also quoted that bitcoin is highly volatile and can be used for illegal activities such as financial crimes and electronic hacking.
With the ban, Qatar has joined a group of countries that are averse to services tied to cryptocurrencies. China banned domestic crypto exchanges in 2017, whereas, India dropped it by saying financial firms cannot provide such services.
Source – The Block