Qatar Financial Centre Introduces Digital Assets Framework

According to Cointelegraph, the Qatar Financial Centre (QFC) in Doha has unveiled a comprehensive regulatory regime for digital assets. This initiative aligns with the Qatar Central Bank’s strategy and involves the Qatar Financial Centre Authority (QFCA) and Qatar Financial Centre Regulatory Authority (QFCRA). The framework establishes a foundation for digital assets within the QFC, including tokenization processes, legal recognition of property rights in tokens and underlying assets, custody arrangements, and transfer and exchange mechanisms. Additionally, it includes provisions for the legal recognition of smart contracts. The QFC operates independently from the mainland, similar to free economic zones in the United Arab Emirates, with its own legal, regulatory, tax, and business framework. It allows up to 100% foreign ownership and repatriation of profits, and charges a competitive 10% corporate tax on locally sourced profits. The new framework aims to ensure that the digital asset ecosystem within the QFC is secure, transparent, and adheres to international standards. It sets standards for asset tokenization and aims to build trust and confidence among consumers, service providers, and stakeholders. Qatar Central Bank Governor His Excellency Sheikh Bandar bin Mohammed bin Saoud Al Thani stated that the new regulations are a milestone in realizing the country’s Third Financial Sector Strategy, which was launched in November 2023. This strategy aims to create a capital market to unlock Qatar’s economic potential and includes embracing emerging technologies to accelerate digital transformation. The digital assets framework is the result of collaboration and consultation with industry stakeholders, developed with input from an advisory group of 37 domestic and international organizations in finance, technology, and legal sectors. Since the launch of its Digital Assets Lab in October 2023, the QFC has accepted more than 20 startups to develop, test, and commercialize their products and services. This initiative supports Qatar’s broader digital transformation goals and positions the country as a significant player in the global digital assets market.