The Qatar Financial Centre (QFC) has introduced a new regulatory framework for digital assets, designed to create a secure and transparent environment for digital asset activities within the QFC. The framework encompasses a range of regulations, including tokenization processes, legal recognition of digital tokens and smart contracts, and guidelines for asset custody, transfer, and exchange.
The regulatory framework was developed by the Qatar Financial Centre Authority (QFCA) and the Qatar Financial Centre Regulatory Authority (QFCRA). It was created in collaboration with an advisory group that includes 37 domestic and international organizations from the finance, technology, and legal sectors. His Excellency Sheikh Bandar bin Mohammed bin Saoud Al Thani, Governor of the Qatar Central Bank, has endorsed the framework as part of the country’s broader financial strategy.
The framework was announced in conjunction with Qatar’s Third Financial Sector Strategy, which was launched in November 2023. This new strategy is part of Qatar’s efforts to modernize its financial sector by incorporating emerging technologies. The QFC’s Digital Assets Lab, which has been instrumental in developing this framework, began its operations in October 2023.
The new regulations apply to the Qatar Financial Centre (QFC) in Doha, which operates under a separate legal and regulatory framework from the rest of Qatar. Similar to free economic zones in the United Arab Emirates, the QFC offers distinct advantages, including up to 100% foreign ownership, full repatriation of profits, and a competitive 10% corporate tax rate on locally sourced profits.
This initiative is a key component of Qatar’s Third Financial Sector Strategy, aimed at unlocking the country’s economic potential by fostering a digital asset ecosystem that meets international standards. The framework is designed to enhance trust and confidence among consumers, service providers, and stakeholders, ensuring that the QFC remains a competitive and attractive hub for digital asset activities.
The QFC’s regulatory framework provides comprehensive guidelines on how digital assets should be managed within its jurisdiction. This includes detailed rules on tokenization, legal recognition of digital property rights, and the use of smart contracts. The framework also establishes standards for the safe custody, transfer, and exchange of digital assets.
Since launching its Digital Assets Lab in October 2023, the QFC has already welcomed over 20 startups to develop and test their products and services within this regulated environment. The new framework is expected to drive further growth in Qatar’s financial sector by attracting more businesses to the QFC and supporting the country’s digital transformation goals.
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