Nikolas Sargeant
Qatar has officially launched a robust regulatory framework to oversee and manage the growing digital asset market. The announcement was made in a joint statement by the Qatar Financial Centre (QFC) and the Qatar Financial Centre Regulatory Authority (QFCRA) on Sunday.
The newly introduced QFC Digital Assets Framework 2024 lays down the legal and regulatory groundwork for digital assets, with a strong emphasis on tokenization. This framework recognizes property rights in both tokens and the underlying assets they represent. Additionally, it sets forth regulations for the custody, transfer, and exchange of digital assets and grants legal recognition to smart contracts.
To refine this framework, regulatory authorities actively sought input from industry experts and businesses. A consultative process was coordinated by an advisory group composed of 37 organizations across the financial, technology, and legal sectors, both domestically and internationally.
Their feedback helped shape the structure, content, and practical implementation of the framework. The consultation period concluded on January 2, 2024.
Collaboration with Startups Fuels Qatar’s Digital Asset Revolution
Since the launch of the QFC Digital Assets Lab in October 2023, over twenty startups and fintech companies have been admitted. These companies are at the forefront of developing, testing, and launching digital asset products and services. Their involvement has been instrumental in the evolution of the QFC Digital Assets Framework 2024, demonstrating the pivotal role of industry collaboration in shaping the digital asset landscape.
With the framework now in place, companies can actively seek licenses to operate as token service providers.
“Unveiling the 2024 Digital Assets Regulations is a significant step in our pursuit of the Third Financial Sector Strategy,” said Sheikh Bandar bin Mohammed bin Saoud Al Thani, Governor of the Qatar Central Bank.
He emphasized that this framework opens up considerable opportunities while establishing a strong regulatory environment for the financial sector. This initiative aligns with Qatar’s broader digital transformation goals and supports the Third National Development Strategy, the final stage of the Qatar National Vision 2030.
Qatar Completes Digital Assets Framework on Schedule
In July, Henk Jan Hoogendoorn, Chief of Financial Services at the Qatar Financial Centre (QFC), confirmed that the digital assets framework was on track for completion and implementation by the fourth quarter of this year. Earlier, the central bank had finalized its central bank digital currency (CBDC) infrastructure, marking another key milestone in Qatar’s financial sector advancements.
