Qatar Introduces Digital Assets Legal Framework
03 Sep, 2024 ● Coin news
The Qatar Financial Centre (QFC), a business hub located in Doha, Qatar, has introduced a comprehensive regulatory regime for digital assets.
The Qatar Financial Centre Authority (QFCA) and Qatar Financial Centre Regulatory Authority (QFCRA), which oversee the QFC, announced a framework designed to establish a solid foundation for digital assets within the QFC.
This new set of regulations includes guidelines for tokenization processes, the legal recognition of property rights in tokens and underlying assets, as well as rules for custody arrangements, transfer, and exchange.
Additionally, the framework includes provisions for the legal recognition of smart contracts.
Similar to the free economic zones in the United Arab Emirates, which operate independently from the mainland, the QFC has its own distinct legal, regulatory, tax, and business framework, separate from the rest of Qatar.
The QFC permits up to 100% foreign ownership and full repatriation of profits. It also “charges a competitive rate of 10% corporate tax on locally sourced profits.”
According to the announcement, the framework is designed to ensure that the digital asset ecosystem within the QFC is secure, transparent, and in line with international standards.
The QFC stated that the framework sets benchmarks for asset tokenization and aims to build trust and confidence among consumers, service providers, and stakeholders.
Qatar Central Bank Governor His Excellency Sheikh Bandar bin Mohammed bin Saoud Al Thani described the new regulations as a significant milestone in advancing the country’s “Third Financial Sector Strategy.”
He believes the framework will create substantial opportunities within Qatar’s financial sector.
In November 2023, Qatar launched its Third Financial Sector Strategy, aiming to establish a capital market that will help unlock the country’s economic potential.
The strategy includes “embracing emerging technologies” to accelerate digital transformation.
The digital assets framework is also the result of collaboration and consultation with industry stakeholders.
The QFC noted that it was developed with input from an advisory group consisting of 37 domestic and international organizations in the finance, technology, and legal sectors.
The QFC also mentioned that since launching its Digital Assets Lab in October 2023, it has accepted more than 20 startups to develop, test, and commercialize their products and services.
Sources:
https://cointelegraph.com/news/qatar-financial-centre-digital-assets-regulation
https://www.qfc.qa/en/about-qfc/overview
https://www.qcb.gov.qa/PublicationFiles/QCB_TSP_Executive_Summary_vFinal5_Option_1A.pdf
