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- The QFCRA imposed a prohibition on the provision of virtual asset services in December 2019.
- The nation has revealed that it is actively exploring potential uses for CBDC.
The Qatar Central Bank (QCB) has faced criticism from the Financial Action Task Force (FATF) for not adequately enforcing its own regulations against virtual asset service providers.
To effectively address emerging forms of criminal activity, including penalizing virtual asset service providers, Qatar must improve its capabilities, as highlighted in a report published on May 31 by the global watchdog for money laundering and terrorism financing.
Additionally, the Qatar Financial Centre Regulatory Authority (QFCRA) enacted a ban on the provision of virtual asset services within and from the Qatar Financial Centre in December 2019.
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At that time, the regulatory authority cautioned any entity that distributes or facilitates the supply or exchange of crypto assets, stating that penalties would be enforced in accordance with the QFCRA’s rights and responsibilities.
The Financial Action Task Force (FATF) has published a report indicating that while Qatar has made “positive and sustained progress,” particularly in gathering beneficial ownership information for its nearly complete unified register, further efforts are necessary.
Furthermore, it has been asserted that Qatar’s “sophisticated analysis capabilities” for detecting money laundering cases are not being fully utilized, leading to calls for the nation’s authorities to enhance their investigative efforts.
Despite the prohibition on companies providing services related to virtual assets, Qatar has indicated that it is actively examining potential applications for a central bank digital currency (CBDC). In June 2022, it was reported that the QCB had reached the “foundation stage” of the CBDC issuance process.
