The boom in cryptocurrency use caused a ripple effect that resulted in many crypto-related businesses springing up across the world. This is because as more people use crypto, there is a need for products and services that will help them spend, store, invest and otherwise make use of crypto. As cryptocurrency regulation is being put out in different parts of the world, the public treatment of crypto-related business is also being discussed and in some parts of the world, business is easier than others as a single piece of regulation could make or mar the crypto industry such as the ban in India.
According to a recent announcement from the Qatar Financial Centre Regulatory Authority (QFCRA), businesses that deal in virtual assets cannot conduct their activities on the premises of the Qatar Financial Center.
No Go Area
This information came via a tweet from December 26, 2019, and stated that businesses are not allowed to facilitate or directly engage in the trading or exchange of crypto assets from the premises of the Qatar financial center.
“The Regulatory Authority shall impose penalties in accordance with its rights and obligations […] in case of any violation of undertaking […] activities that are not permitted in the QFC,” the statement said.
The Qatar Financial Center is a center that exists within Qatar and has its own legal, financial and regulatory jurisdiction and was created to attract funds into the country and spur economic growth. As of now, the center has attracted up to 500 firms and has roughly $20 billion in assets under its management but it seems this will not involve crypto firms at any point in the near future. Crypto business activities are defined by the organization as a trade that takes place between fiat and cryptocurrency and this includes the transfer, custodianship and so on.
A recent article states that the country has just begun implementing anti-money laundering measures and that this might be as a result.
“The State of Qatar affirms that fighting money laundering and terrorist financing requires a strict and effective regulatory and legislative framework, whereby the powers and responsibilities of both government agencies and relevant ministries are defined in relation to combating money laundering and terrorist financing,” says The governor of the Qatari central bank Sheikh Abdullah bin Saud Al Thani.