Qatar Central Bank: Banks are prohibited from trading Bitcoin in any form

According to foreign media reports, the Qatar Central Bank (QCB) announced that banks are prohibited from trading virtual currency Bitcoin in any form, or exchanging Bitcoin for any other currency. In addition, it is not allowed to open bank accounts to trade Bitcoin, or send or receive Bitcoin in any form of transfer for the purpose of buying and selling digital currencies.

The Qatar Central Bank has issued a circular warning against the use of any currency in exchange for Bitcoin, and also stressed that banks will be punished if they are involved in Bitcoin transactions in accordance with Law No. 13 of 2012 concerning the Qatar Central Bank Law and Financial Institutions.

The Qatari central bank also further explained that in order to ensure the security of the financial and banking system, local banks are not allowed to trade digital currencies, including the so-called "Bitcoin". According to the Qatari central bank, Bitcoin is an illegal currency. Currently, no central bank or government in the world has used issued or cleared payment currencies to promise its value, nor is there any tradable commodity or gold to endorse its value.

The Qatari central bank also stressed that digital currencies have high volatility risk characteristics and are involved in financial crimes and fraud. Not only that, due to the lack of guarantors and asset endorsements, investors are likely to suffer the risk of value loss.