Qatar has unveiled a new regulatory framework for digital assets, the launch of which is set to bring key areas such as tokenization, custody and exchange under regulation.
The Qatar Financial Centre Authority and the Qatar Financial Centre Regulatory Authority, the lead framework drafters, announced the new framework in a joint statement. press release.
QFC Digital Asset Framework 2024
According to details provided in a press release, the QFC 2024 Digital Assets Framework is a collaborative effort between various stakeholders, including 37 local and international organizations from the legal, financial and technology sectors.
The new crypto system follows guidelines from the country’s central bank, the QFC Regulatory Authority and the Qatar Financial Centre Regulatory Authority said in their announcement. The regulatory work included the unveiling of the QFC’s Digital Asset Lab in October 2023. Since that milestone, more than 20 fintech startups have joined the program to pilot and commercialize crypto products and services.
The Qatar Financial Centre Authority and the Qatar Financial Centre Regulatory Authority noted that the QFC Digital Assets Framework 2024 provides various legal and regulatory aspects for the digital assets market in Qatar.
Unlike the tokenization process, the framework recognizes tokens as property and provides a legal perspective for the custody, transfer, and exchange of these assets. The new framework in Qatar also legally recognizes smart contracts and sets industry standards for cryptocurrencies in the Qatar Financial Center.
Growing regulatory clarity for cryptocurrencies
While the US lags behind, Europe has made great strides with its MiCA rules, and Hong Kong is increasingly becoming a crypto hub.
Meanwhile, Qatar’s digital asset framework is in line with developments across the Middle East, particularly in the UAE. The UAE has become one of the leading destinations for cryptocurrency companies thanks to its increasing regulatory clarity.
Dubai and Abu Dhabi are the main hubs, with the Dubai International Financial Centre and Abu Dhabi Global Market playing a key role in the region’s growing status as a financial hub and cryptocurrency hub.
Commenting on the matter, the Governor of Qatar Central Bank, His Excellency Sheikh Bandar bin Mohammed bin Saud Al Thani, said that the regulation is a fundamental step towards clarity for the financial sector. Al Thani added that the opportunities and gains it provides contribute to achieving the country’s digital transformation and the goals of Qatar National Vision 2030.
Yousuf Mohamed Al-Jaida, CEO of the Qatar Financial Centre Authority, added that the new framework underscores Qatar’s commitment to aligning its digital asset regulation with international best practices. The authorities expect this achievement to provide the regulatory clarity that local and international players in the ecosystem seek.