Regulation
Qatar reviews stance on cryptocurrencies after ban, promises regulation by end of 2024
Qatar is making progress toward establishing a regulatory framework for digital assets, marking a shift from its previous hard-line stance on cryptocurrencies. Bitcoin trading banned in 2018but recent developments suggest it is cautiously reconsidering its approach.
Last year, Qatar’s financial regulators proposed a framework to regulate investment tokens backed by tangible assets. The Qatar Financial Centre Regulatory Authority (QFCRA) and the Qatar Financial Centre Authority (QFCA) have jointly developed this digital asset framework, aimed at strengthening Qatar’s digital economy strategy.
They sought industry feedback to refine the proposed regulations, with the Final legislation is expected in the fourth quarter of 2024. The QFC too created a digital assets lab encourage innovation in the financial and digital asset sectors.
“The Digital Asset Framework represents a crucial step in our journey towards fostering innovation and growth within Qatar’s financial landscape,” said Maha Al-Saadi, Head of Regulatory Affairs at QFCA, earlier this year in an interview with Unlock MediaThe lab provides a collaborative space for startups and researchers to explore solutions related to digital assets and blockchain.
However, Qatar’s path to cryptocurrency adoption has not been easy.
Last May, the Financial Action Task Force (FATF) accused the country of being too lax on financing terrorism And urged Qatar’s Central Bank will be more proactive in sanctioning VASPs that violate the cryptocurrency ban. The FATF report cites 2,007 rejected transactions and 43 closed accounts related to digital assets, but notes that no formal sanctions have been applied.
Keep in mind that no regulatory ambiguity has prevented Crypto.com from become a sponsor of the 2022 FIFA World Cup, which was held in Qatar. The press release accompanying the news even went so far as to say that the cryptocurrency exchange would be the “exclusive sponsor of the Qatar 2022 cryptocurrency exchange.”
Despite these challenges, Qatar is moving forward. The central bank has finished building the foundations of its digital currency and plans to test it with local and international banks.
Editor’s Note: This article has been updated to clarify the source of the quote from QFCA official Maha Al-Saadi.
Edited by Stacy Elliott.