Qatar has unveiled a new regulatory framework for digital assets, the launch of which is expected to regulate key areas such as tokenization, custody and exchange.
The Qatar Financial Center Authority and the Qatar Financial Center Regulatory Authority, key players in developing the framework, announced the new framework in a joint press release.
Qatar Digital Asset Framework QFC 2024
According to details in a press release, the QFC Digital Assets Framework 2024 is an effort of various stakeholders, including 37 national and international organizations from the legal, financial and technology sectors.
The QFCA and QFCRA said in their announcement that the new crypto regime follows the guidance of the country’s central bank. Work on the regulation included the unveiling of the QFC Digital Assets 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 QFC Digital Assets Framework 2024 provides for various legal and regulatory aspects of the digital assets market in Qatar, QFCA and QFCRA noted.
In addition to tokenization, the framework recognizes tokens as assets and provides legal perspectives regarding their custody, transfer, and exchange. Qatar’s new framework also legally recognizes smart contracts and establishes industry standards for cryptocurrencies in the QFC.
Growing clarity in cryptocurrency regulation
While the US lags behind, Europe has made major progress with its MiCA rules, and Hong Kong is increasingly becoming a crypto hub.
Meanwhile, Qatar’s digital asset regulatory framework is aligned with developments in the Middle East, particularly in the United Arab Emirates. The UAE has become one of the top destinations for cryptocurrency businesses thanks to clearer regulations.
Dubai and Abu Dhabi are the main hubs, with the Dubai International Financial Centre and Abu Dhabi Global Market respectively being key to the region’s growing status as a financial and crypto hub.
Commenting on the topic, Qatar Central Bank Governor HE Sheikh Bandar bin Mohammed bin Saud Al Thani said that the regulation is a key step towards clarity for the financial sector. The opportunities and gains it offers are in addition to the country’s digital transformation and the goals of Vision 2030, Al Thani added.
Yousuf Mohamed Al-Jaida, Managing Director of QFC, added that the new framework underscores Qatar’s commitment to aligning its digital asset regulations with international best practices. The authorities anticipate that this important step will provide the regulatory clarity desired by domestic and international players in the ecosystem.
