Qatar Blocks Cryptocurrency Services Throughout The Gulf

As the new year begins, Qatar’s Financial Center, the nation’s regulatory authority, has issued a blanket ban on cryptocurrency-related services in the Gulf nation. The prohibition covers not only cryptocurrencies but “anything of value” that could substitute fiat currencies.

Qatar Bans Cryptocurrencies

The Qatari Financial Center, which is also the nation’s regulatory authority, has issued a statewide ban on cryptocurrencies and other digital assets that might substitute traditional fiat.

Per the report, the authority stated that:

“Virtual Asset Services may not be conducted in or from the QFC at this time.” It also reads that this goes for “Anything of value that acts as a substitute for currency, that can be digitally traded or transferred and can be used for payment or investment purposes.”

However, it’s also worth noting that the ban doesn’t cover digital forms of securities or other financial instruments that are thoroughly regulated by the Regulatory Authority, as well as the other governing bodies, including the Qatar Financial Markets Authority, and the Qatar Central Bank.

According to the report, companies that deal with cryptocurrencies have been shutting down because of the particularly strict anti-money laundering regulations.

Cryptocurrency Regulations Getting Stricter

Qatar is not the only country to tighten its stance on cryptocurrencies. Tech Tic Technologies recently reported that companies who deal with cryptocurrencies and related services in the European Union will have to comply with the new directive that comes into effect on January 10th.

The Fifth Anti-Money Laundering Directive (5AMLD) will require stricter Know-Your-Customer (KYC) and AML procedures, as well as monitoring of all transactions.

Among some of the important changes is that companies dealing with cryptocurrencies will have to conduct their very own KYC checks according to the new set of rules. All of the transactions will also be monitored, while corporations will have to file SARs (Suspicious Activity Reports) with law-enforcement authorities.

In general, the field is getting increased supervision, which is something that a lot of people are looking forward to. For instance, one of the barriers to major involvement coming from institutions is just that – the lack of regulations.