Qatar banned cryptocurrency. What happened?
Qatar is a fairly powerful country in the market. So literally today, this power announced its intention to ban cryptocurrency. Next, we will tell you why this lock is more important than it seems. We will also analyze all the nuances associated with the legal status of coins. So, let’s begin.
What exactly is the news?
In Qatar there is a separate financial regulator. Qatar Financial Center (QFC) recognized coins as a forbidden asset for trading on the open spaces of the whole country. The news came from International Investment. The agency cites QFC’s ruling. The ban touched not only on digital assets. But also on any analogues of the state unit – the Qatari rial. But digitized copies of securities are still legal.
More specifically, now in the country are prohibited:
- Trade in coins paired with fiat units;
- Trading coins paired with other digital assets;
- Distribution and mining of coins . Mining in all its manifestations is prohibited;
- Accumulation and management of crypto assets. Now even keeping coins is against the law;
- Other Blockchain services not included in the specified list. The country seeks to equate the very definition of coins with something criminal;
The specific reasons for the prohibitions were not disclosed. The resolution was not preceded by any warnings. However, 2 years ago, in 2018, Qatar outlined its position in relation to Blockchain. Even in that distant time, government officials said that they saw coins “only as an instrument for financial fraud.” Qatar presses on the high volatility of the market and insists on being right. The country is fighting economic crime. Such fraudulent frauds are increasingly being tricked into using coins .
Now, we can move on to the global role of banning coins in Qatar.
How Qatar will affect the global reputation of cryptocurrency
Earlier we mentioned that Qatar is a major player in the global economy. The country cooperates with almost the whole world. Country has channels for the supply of oil and synthetic gas. Qatar can put pressure on other states and push them to ban coins. These are countries such as Japan, South Korea and Pakistan. The listed states depend on Qatar. So, they can listen to his instruction on Blockchain
India has generally introduced deadlines for cryptocurrency. Every coins owner can get up to 10 years in prison. Similar legal restrictions are spelled out in the bill of 2019. Qatar may have been inspired by the example of its trading partner.
Making forecasts is quite difficult. The blockchain ban in Qatar negatively affected the price of most coins. It is likely that other coins locks will follow. Recall that a earlier Uzbekistan also limited the powers of coins owners. Now in the country you can not buy any coins. The government only allowed to sell coins.
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