Qatar has unveiled a new digital assets regulatory framework, with its launch set to bring key areas such as tokenization, custody and exchange under regulation.
The Qatar Financial Center Authority and the Qatar Financial Center Regulatory Authority, key players in the drafting of the framework, announced the new framework in a joint press release.
Qatar’s QFC Digital Assets Framework 2024
According to details in a press release, the QFC Digital Assets Framework 2024 is an effort of various stakeholders, including 37 domestic and international organizations across legal, financial and technology sectors.
The QFCA and QFCRA said in their announcement that the new crypto regime followed guidelines from the country’s central bank. Work on the regulation included the unveiling of the QFC Digital Assets Lab in October 2023. Since this milestone, more than 20 fintech startups have joined the program to pilot and commercialize crypto products and services.
QFC Digital Assets Framework 2024 provides for various legal and regulatory aspects of the digital assets market in Qatar, QFCA and QFCRA noted.
Other than tokenization, the framework recognizes the tokens as property and provides for the legal outlook on their custody, transfer and exchange of these assets. Qatar’s new framework also legally recognizes smart contracts and sets industry standards for cryptocurrencies in the QFC.
Growing crypto regulatory clarity
While the U.S lags, Europe has taken major steps with its MiCA rules, and Hong Kong is increasingly becoming a crypto hub.
Meanwhile, Qatar’s digital assets framework aligns with developments across the Middle East, particularly in the United Arab Emirates. The UAE has become one of the top destinations for crypto companies with its increased regulatory clarity.
Dubai and Abu Dhabi are the main centers, with the respective Dubai International Financial Centre and Abu Dhabi Global Market key to the region’s growing status as a financial and crypto hub.
In a comment on the topic, Qatar Central Bank governor H.E. Sheikh Bandar bin Mohammed bin Saoud Al Thani, said that the regulation is a key step towards clarity for the financial sector. The opportunities and gains this offers add to the country’s digital transformation and vision 2030 goals, Al Thani added.
Yousuf Mohamed Al-Jaida, chief executive officer of QFC, added that the new framework underlines Qatar’s commitment to aligning its digital assets regulation with international best practices. Authorities anticipate that the milestone will provide for regulatory clarity that both domestic and international players within the ecosystem want.