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Qatar blocking cryptocurrency services across the gulf region

With the beginning of the New Year 2020, the Qatar Financial Centre has issued a blanket ban on cryptocurrency-related services across the Gulf. This does not only restrict cryptocurrency but “anything of value” that substitute fiat currencies, and can be digitally traded or transferred for payment or investment.

As per statements made by authorities, Virtual Asset Services cannot be conducted in or from the QFC (Qatar Financial Center). It is also to be noted that the ban does not cover digital forms of securities or other financial instruments that are thoroughly regulated by the regulatory authority and other governing bodies including the QFMA (Qatar Financial Markets Authority) and the QCB (Qatar Central Bank).

Companies that dealt in the cryptocurrency have been shutting down due to strict anti-money laundering regulations.

Stricter Cryptocurrency Rules

However big or small it may seem, Qatar is not the only country to tighten its stance on cryptocurrency. According to a report published by one of the cryptocurrency websites, organizations who deal in cryptocurrency and related services in the European Union will need to comply with the new directive from the 10th of this month.

Fifth Anti-Money Laundering Directive (5AMLD) will require stricter KYC (know your customer) and anti-money laundering procedures along with transactions being actively monitored.

Among these important changes in companies dealing with cryptocurrency will need to conduct their own KYC checks according to the new set of rules. Transactions will be monitored while corporations will be required to file SAR (Suspicious activity reports) with law-enforcement agencies.

In general, this field will be getting increased supervision, which is something that a lot of people are looking forward to. The only barrier to major involvement will be the lack of regulations.

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