Regulation
Qatar Reconsiders Crypto Stance After Ban, Pledges Regulations by End of 2024
Qatar is taking steps toward establishing a regulatory framework for digital assets, signaling a shift from its previous hardline stance against cryptocurrencies. The wealthy Gulf state Bitcoin trading banned in 2018but recent developments suggest he is cautiously reconsidering his 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 QFC Authority (QFCA) have jointly developed this digital asset framework, with the aim of strengthening Qatar’s digital economy strategy.
They sought industry feedback to refine the proposed regulations, with the Final legislation is expected in Q4 2024The QFC also founded a digital resources laboratory to encourage innovation in the financial and digital business sectors.
“The Digital Asset Framework represents a key milestone in our journey towards fostering innovation and growth in Qatar’s financial landscape,” said Maha Al-Saadi, Head of Regulatory Affairs at QFCA, earlier this year during 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 smooth.
Last May, the Financial Action Task Force (FATF) He accused the country of being too lax in raising funds for terrorists AND solicited Qatar Central Bank to be more proactive in sanctioning VASPs that violate the cryptocurrency ban. The FATF report cited 2,007 declined transactions and 43 closed accounts linked to digital assets, but noted that no formal sanctions were applied.
Keep in mind that none of the regulatory ambiguities have stopped Crypto.com from become a sponsor of the 2022 FIFA World Cup, hosted in Qatar. The press release for the news even went so far as to say that the crypto exchange would be the “exclusive sponsor of the Qatar 2022 cryptocurrency trading platform.”
Despite these challenges, Qatar is moving forward. The central bank has finished building the foundation for 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.
By Stacy Elliott.