Qatar introduces new digital assets framework

Qatar has announced a new digital asset regulatory framework that will regulate key areas such as tokenization, custody, and exchanges.

Qatar Financial Centre Authority and Qatar Financial Centre Regulatory Authority, which played an important role in the preparation of the framework, announced the new framework in a joint press release.

Qatar’s QFC Digital Assets Framework 2024

According to details in the press release, the QFC Digital Assets Framework 2024 is an effort of various stakeholders, including 37 local and international organisations from the legal, finance and technology sectors.

The QFCA and QFCRA said in their announcements that the new crypto regime follows the guidelines of the country’s central bank. Work on the regulation also included the introduction of the QFC Digital Assets Lab in October 2023. Since this milestone, more than 20 fintech startups have joined the program to pilot and commercialize crypto products and services.

QFCA and QFCRA stated that the QFC Digital Assets Framework 2024 provides for various legal and regulatory aspects of the digital assets market in Qatar.

Apart from tokenization, the framework recognizes tokens as property and provides legal appearance for the custody, transfer and exchange of these assets. Qatar’s new framework also legally recognizes smart contracts and sets industry standards for cryptocurrencies in the QFC.

Increasing clarity of crypto regulations

While the US lags behind, Europe has made significant strides with its MiCA rules and Hong Kong is increasingly becoming a crypto hub.

Qatar’s digital assets framework, meanwhile, aligns with developments in the Middle East, particularly in the United Arab Emirates, which has become one of the top destinations for crypto companies with its increased regulatory clarity.

Dubai and Abu Dhabi are the major hubs, with the Dubai International Financial Centre and Abu Dhabi Global Market respectively playing a key role in the region’s growing status as a financial and crypto hub.

Commenting on the issue, HE Sheikh Bandar bin Mohammed bin Saoud Al Thani, Governor of the Central Bank of Qatar, said the regulation is an important step towards clarity for the financial sector. Al Thani added that the opportunities and gains it offers contribute to the country’s digital transformation and Vision 2030 goals.

QFC’s CEO, Yousuf Mohamed Al-Jaida, added that the new framework underscores Qatar’s commitment to aligning digital asset regulation with international best practices. Authorities anticipate that this milestone will provide the regulatory clarity desired by both local and international players in the ecosystem.