Bitcoin trading prohibited in Qatar: Central Bank

 07 Feb 2018 - 19:10

Bitcoin trading prohibited in Qatar: Central Bank
Representation of the Bitcoin virtual currency standing on the PC motherboard is seen in this illustration picture, February 3, 2018. REUTERS/Dado Ruvic/Illustration

The Peninsula Online

Doha: In a statement sent to all banks operating in the country, Qatar Central Bank said that trading in Bitcoin is not allowed in Qatar and penalties will be levied if the circular is violated.

Active trading in Bitcoin have been noticed in some countries, but it is an illegal currency because there is no commitment from any central bank or a government in the world to exchange their value for money issued and cleared for payment for the goods traded globally or for gold, the statement said.

“This cryptocurrency is highly volatile and can be used for financial crimes and electronic hacking as well as risk loss of value because there are no guarantors or assets,” it added.

The central bank explained that in order to ensure the safety of the financial and banking system, all banks operating in the country are not allowed to deal in any way with this currency or exchange it with any other, or open accounts to deal with it or send or receive any money transfers for the purpose of buying or selling this currency.

The central bank will impose penalties in accordance with the provisions of the Qatar Central Bank law and regulation of financial institutions issued by Law No. (13) for the year 2012 in the event of any violation of this circular.

Recently Banks in Britain and the United States have banned the use of credit cards to buy Bitcoin and other "cryptocurrencies", fearing a plunge in their value will leave customers unable to repay their debts.

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