Qatar has introduced a regulatory framework for digital assets

The Qatar Financial Center (QFC) Business Center in Doha, Qatar has launched a comprehensive system for managing and creating digital assets.

The QFC regulators – Qatar Financial Center Authority (QFCA) and Qatar Financial Center Regulatory Authority (QFCRA) – announced a framework that lays the foundation for digital assets in the QFC.

The regulations include legal recognition of tokenization procedures and property rights in tokens and assets, custody arrangements, transfer and exchange. In addition, the framework has provisions for the legal recognition of smart contracts.

Like the free economic zones of the United Arab Emirates, which operate separately from the mainland, the QFC has its own legal, regulatory, tax and commercial framework distinct from the rest of Qatar.

QFC allows up to 100% foreign ownership and 100% repatriation of profits. It also imposes a “competitive rate of 10% corporate tax on domestically derived profits.”

Related: Singapore, Hong Kong and UAE lead in crypto adoption: Report

Supporting Qatar's digital transformation

According to the announcement, the framework will ensure that the digital asset ecosystem in QFC is secure and transparent and follows international standards. The QFC said the framework would set standards for asset tokens. It also aims to ensure trust and confidence among consumers, service providers and stakeholders.

His Highness Sheikh Bandar bin Mohammed bin Saud Al Thani, Governor of the Central Bank of Qatar, said the newly launched rules are a milestone in realizing the country's “Third Financial Sector Strategy”. He believes the framework will bring significant opportunities in Qatar's financial sector.

In the year In November 2023, Qatar launched its third financial sector strategy to create a capital market that will enable the country to unlock its economic potential. The plan includes “embracing emerging technologies” to accelerate digital transformation.

The Digital Assets Framework is also the result of collaboration and consultation with industry stakeholders. According to QFC, it was developed with the help of an advisory group of 37 local and international firms working in the financial, technology and legal sectors.

QFC added that since its launch in October 2023, the Digital Assets Lab has welcomed more than 20 startups to develop, test and commercialize its products and services.

Magazine: Legislators' fear and skepticism fuel proposed crypto regulations in the US.