A comprehensive regime for regulating and creating digital assets will enable safe and transparent custody arrangements, transfer and exchange of cryptocurrencies in the Qatar Financial Centre (QFC) in Doha.
Following the Qatar Central Bank’s strategy, the QFC’s regulators, the Qatar Financial Centre Authority (QFCA) and the Qatar Financial Centre Regulatory Authority (QFCRA) announced a legal framework for the digital asset ecosystem within the QFC which adheres to international standards.
“The introduction of the Digital Assets Framework 2024 underscores our commitment to creating a robust regulatory regime aligned with international best practices. We are proud to set a blueprint for developing, applying, and operating digital assets, that promotes market trust and confidence. We anticipate that this regulatory clarity will attract both domestic and international players, boosting Qatar’s financial services sector competitiveness.”
Yousuf Mohamed Al-Jaida, Chief Executive Officer, QFC
QFC is an onshore business and financial centre located in Doha, providing legal and regulatory services for local and international companies. The centre has its own legal, regulatory, tax and business framework, separate from the rest of the country.
The new framework establishes a foundation for digital assets functioning in the QFC. In particular, the QFC Digital Assets Framework 2024 sets the rules for tokenization, legal recognition of token property rights, crypto custody, transfer and exchange, as well as legal recognition of smart contracts.
The digital asset framework was developed in Qatar after extensive consultation and collaboration with industry stakeholders, coordinated through an advisory group of thirty-seven domestic and international organisations from the financial, technology, and legal sectors.
Qatar Central Bank Governor, His Excellency Sheikh Bandar bin Mohammed bin Saoud Al Thani said that the QFC Digital Assets Framework is a milestone in realizing the country’s “Third Financial Sector Strategy” which aims to embrace emerging technologies to accelerate national digital transformation. The main goal of the nationwide plan is to create a capital market and help the country unlock its economic potential to the fullest.
Qatar also launched the QFC Digital Assets Lab in October 2023 to support the growth of local innovations. Over almost a year, more than twenty startups and fintech firms have been accepted into the lab to develop, test, and commercialise their digital asset products and services.
