The residents of Qatar can no longer utilize any virtual asset (including cryptos) this year, says the Qatar Financial Centre (QFC).

The new law bans whatever is of value, acting as a substitute for currency, capable of being traded or transferred digitally and usable for payment or investment purposes. The law is coming after the country’s financial regulators did not observe many benefits in the blockchain technology within the previous years.

That is, there will be no promotion of any invention with the features above, even if they are not based on blockchain. For example, gift cards and coupons have the characteristics described in the law. Hence, the law may probably initiate further confusion for businesses ahead.

The law prohibits crypto-to-crypto operations, and the residents cannot buy, store, or sell virtual assets not backed by the government.

Besides, it is mandatory for all financial services associated with cryptos, as well as exchanges, to halt operations. It is also impossible for the citizens to hold crypto for anyone, administrate or transfer any coins. The emergence of this law means crypto enthusiasts in the country should abandon their passion or move to another country.

Some lawmakers in certain countries are presuming things when it comes to the cryptocurrency software. Nevertheless, many people did not study the code. The authorities would have come to the understanding that crypto trading has to do with technology and not about holding cryptos physically, if they study the code.

The possession of a golden coin means the ownership of a value that can be confiscated. However, it is not the same for cryptocurrencies, as it is impossible to seize tokens under some conditions.

Featured image courtesy of Shuttersotck.