Lithuania vs Qatar
Crypto regulation comparison
Lithuania
Qatar
Cryptocurrency is legal and regulated in Lithuania. The Bank of Lithuania oversees VASPs under AML regulations and has been an early mover in crypto regulation within the EU. Lithuania attracted a large number of VASP registrations due to initially favorable conditions, though it tightened requirements significantly in 2022-2023. The MiCA framework now applies.
Qatar has a restrictive stance on cryptocurrency. The Qatar Central Bank banned crypto trading and services in 2018, and the QFC Regulatory Authority (QFCRA) prohibits virtual asset services within the Qatar Financial Centre. However, Qatar has shown interest in blockchain technology for non-crypto applications and is exploring a potential CBDC. The Qatar Financial Centre issued a Digital Assets Framework in 2024 focused on tokenized real-world assets, not cryptocurrencies.
Key Points
- VASPs must register with the Bank of Lithuania under AML/CFT law
- Capital gains from crypto taxed at 15% personal income tax rate
- Lithuania became a major EU hub for crypto companies; over 500 VASPs registered by 2022
- Tightened VASP requirements in 2022-2023, including local substance and capital requirements
- MiCA transition underway from December 2024
Key Points
- QFCRA prohibited authorized firms from providing virtual asset services (2019 alert, reaffirmed 2024)
- QFCRA prohibits virtual asset services within the Qatar Financial Centre
- QFC introduced a 2024 Digital Assets Framework for tokenized securities (not crypto)
- No personal income or capital gains tax in Qatar (but crypto trading is banned)
- Qatar exploring blockchain and CBDC applications separate from crypto