- The QFCRA issued a ban on the provision of virtual asset services in December 2019.
- The country has disclosed that it is actively studying potential applications for CBDC.
Qatar Central Bank (QCB) has been criticized by the Financial Action Task Force (FATF). This is for failing to effectively implement QCB’s own policies forbidding virtual asset service providers.
To successfully tackle developing kinds of criminal conduct. Such as punishing virtual asset service providers. Qatar has to enhance its skills, as was noted in a report issued on May 31. This was by the global money-laundering and terrorism funding watchdog.
Also, the Qatar Financial Centre Regulatory Authority (QFCRA) issued a ban on the provision of virtual asset services in and from the Qatar Financial Centre in December 2019.
Need to Step Up Investigation Efforts
At the time, the regulatory body issued a warning to any company that distributes or supports the supply or exchange of crypto assets. Saying that penalties will be applied in line with the QFCRA’s rights and duties.
The Financial Action Task Force (FATF) has released a report. It states that although Qatar has achieved “positive and sustained progress.” Especially, in collecting beneficial ownership information for its almost full unified register, more work needs to be done.
Moreover, it has been claimed that Qatar’s “sophisticated analysis capabilities” to uncover cases of money laundering are not being properly exploited. Thus, prompting calls for the country’s authorities to step up their investigation efforts.
In spite of the fact that Qatar has placed a prohibition on companies. That offer services related to virtual assets, the country has disclosed that it is actively studying potential applications for a central bank digital currency (CBDC). Back in June of 2022, it was reported that the QCB had reached the “foundation stage” of the CBDC issuing process.
