The country’s authorities have established legal and regulatory foundations for digital assets within its business hub.
Regulators at the Qatar Financial Centre (QFC), a business hub based in Doha, Qatar, issued a regulation on digital assets on September 1. The aim is to establish a clearly defined framework for digital assets in the centre.
“The QFC 2024 Digital Asset Framework establishes the legal and regulatory foundations for digital assets, including for the tokenization process, the legal recognition of ownership rights in tokens and their underlying assets, custody, transfer and exchange arrangements,” the statement notes. The framework also provides for “the legal recognition of smart contracts,” it said.
The QFC, which therefore has its own legal and regulatory framework, wants to “guarantee” a secure and transparent digital asset ecosystem, “in accordance with international standards”. This framework establishes high standards “for the asset tokenization process” and establishes “a reliable technological infrastructure that will guarantee the confidence of consumers, service providers and industry players”, explains the Qatar Financial Centre.
“Adaptable regulatory frameworks”
This new regulatory framework, specific to the Qatar Financial Center, should help develop the crypto-asset ecosystem in the country.
“The launch of the Digital Assets Regulation 2024 marks an important milestone in our journey towards achieving the third financial sector strategy,” said Sheikh Bandar bin Mohammed bin Saud Al Thani, Governor of the Central Bank of Qatar.
Already last November, Qatar launched its “third financial sector strategy”, aimed at creating economic momentum and competitiveness for the country. The plan includes the development of “a leading ecosystem that embraces emerging technologies to accelerate digital transformation, supported by adaptable and consistent regulatory frameworks and reliable market infrastructures”.
According to Triple A, 24,557 people will hold cryptocurrencies in Qatar in 2023, or 0.90% of the population.
