The case of Qatar regarding the cryptocurrency market has been an exciting example of contrast. Its government has been one with several initiatives toward the realization of blockchain technology's potential, while, on the other hand, it explicitly bans the practice of cryptocurrency trading. This article further explicates the position of crypto markets in Qatar initiatives, regulations, and key players in the evolving world of digital assets.
It was during the month of March in 2023 that significant steps toward the embracement of the blockchain technology were made by Qatar. This included the development of the Qatar National Blockchain Blueprint by the Communications Regulatory Authority in collaboration with Hamad Bin Khalifa University and Qatar University. The project will set the scene for a regulatory framework of blockchain and comes in line with the government's vision of innovating and creating.
Yet a critical distinction is drawn by the national fintech strategy of the Qatar Central Bank, published in the same month. Intentionally, as the strategy sets out to emphasize digital innovation through things like blockchain and Islamic banking, it keeps the ban on cryptocurrencies firmly in place.
Very interestingly, the plan then seeks to regulate and empower the fintech models through licensing of PSPs and BNPL firms. A comprehensive framework also prepares for the accommodation of other fledgling fintech services, such as insurance price comparison websites.
This, however, does not really spell out a totally gloomy picture for cryptocurrency lovers in Qatar. The Qatar Financial Centre offers an environment that regulates the "safe acquisition, staking, and trading of digital assets" by using compliant exchanges that have been vetted by the QFCRA. Users are also secure and highly efficient while using local online banking or bank transfer in QAR.
It is, however, worth reminding that it since January 2020, the QFCRA fully outlawed the provision of services related to virtual assets within QFC. The ban goes for any digital asset used as a means of exchange, is digitally transferable or tradable, and those used to pay it or investing.
Qatar has developed a network of regulatory bodies and associations, equipped to explore around the clock events taking place in the cryptocurrency domain. The major regulatory bodies that are playing a core role are QFCRA, QCB, QFC, CRA, and QFTeRA.
Relevant associations for compliance monitoring in the long run are:
QIA: Qatar Investment Authority
QRDI: Qatar Research and Development Innovation Council
QFZA: Qatar Free Zone Authority
MEAACBA : Middle East, Africa & Asia Crypto & Blockchain Association
These bodies work together to put in place a secure and compliant space for any potential, future use of cryptocurrencies.
In March 2022 one of the most significant moves was the sponsorship of the FIFA World Cup Qatar 2022 entered into by Crypto.com. The first of its kind sponsorship gives further proof that Qatar is increasingly adopting cryptocurrencies; however, this did not come with the next regulatory impact.
Despite the ban on cryptocurrency trading, many key market players are already quite active in the broad scene of crypto and blockchain in Qatar. These include:
• Systems Limited Doha
• Appventurez
• DevSwat
• BYDFi
• Phemex
• BingX
• Binance
• Bybit
These are companies offering a wide range of blockchain and fintech services in a bid to potentially establish a way forward to an even more integrated future with digital currencies.
The market of digital cryptocurrencies in Qatar offers an interesting case of cautious optimism evidenced by a government that is active in the realm of blockchain but rather conservative toward the trade of digital currencies. As regulations evolve, Qatar might create a very special setting for safe and compliant crypto adoption, with local players potentially playing a relevant role. Currently, though, the future of trading in cryptocurrencies remains uncertain in Qatar.