Qatar, the gulf nations have recently announced that it would ban all Crytocurrency related activities within the sector. The decision to stop and halt all activity was made by the Qatar Financial Centre (QFC). This is a major shock as the gulf nation was one of the very few nations that adopted the blockchain technology as the central bank of Qatar was the first major central bank to adopt the technology. After the announcement was made by the central bank, governmental and other employees are raising concerns over the money laundering and terrorist financing that are used by the criminal enterprise as a mean to stifle local crypto activities. News of the crypto ban came via the report that was made by Qatar Financial Regulatory Authority (QFCRA). According to the report released by the Qatar Financial Regulatory Authority (QFCRA), all the activity that is related to crypto activities is now banned or illegal within the special economic zone. Specifically listed in the report are the critical components of the market. The components that were in the report are crypto to crypto trades and crypto to fiat trade. Also the report directly lists virtual asset services including those that facilitate the trading, custody, and issuance of virtual assets in any form.
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There was not any mention of security tokens in the lists, and in fact these security tokens remain immune and unaffected by the new legislation. The instruments that are used by the QFCRA, the Qatar Central Bank, or the Qatar Financial Markets Authority are exempted from the ban. There is a reason behind carrying out the regulation as the security tokens undergo full AMI and KYC verification. This is quite a logical decision that is played in part of the gulf country. The reason was explained by the Sheikh Abdulla bin Saoud Ai-Thabni, the governor of the Qatar’s Central Bank, stating that the regulation would put a lid on money laundering and terrorist financing. According to the governor a strong and effective legislation will accomplish the task and make the correlation between them go away.
It seems that this new step the Qatar had taken aligns with the long term goal the government the country had tried to accomplish and fulfill. The goal or the vision is to stop using the digital currency platform as the source of money laundering which have in the past have to the notice of the government and the financial institution. These bodies keep a strong eye on the things that go around with securities and also keep tracks of who sells or buys and also the later movements in the security markets. QFC is a special jurisdiction within the country that is formed and established to promote economic activity and growth. The companies that have good, cordial relation with the QFC are treated in special way and are given wide range of benefit. The benefits corporations and enterprise get in return for maintaining good relationship is reduction in legal, business, tax, and regulatory infrastructure. By adopting the strategy Qatar hopes to attract foreign investment and companies which will benefit the country in the long terms and also increase standard of living of the country as a whole.
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Qatar is not only the first country that has put in place harsh rules towards the crypto sector, there are many other nations that have adopted the same path as Qatar is currently pursuing. The latest altercation in the rules and regulation was carried out by the United States. The lawmakers have proposed to bring the entire crypto sector under the jurisdiction of the regulators.
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