The Qatar Central Bank, alongside the Qatar Financial Centre Authority, and Qatar Financial Centre Regulatory Authority (QFCRA) have launched the QFC Digital Assets Framework, a comprehensive and innovative regime for the creation and regulation of digital assets in the QFC.
As per the press release, the development of the framework is one of the important goals established by the Third Financial Sector Strategic Plan.
The QFC Digital Assets Framework 2024 issued by Qatar Central Bank and QFC, establishes the legal and regulatory foundation for digital assets, including the process of tokenization, legal recognition of property rights in tokens and their underlying assets, custody arrangements, transfer, and exchange. The framework also provides for the legal recognition of smart contracts.
The framework will ensure a secure and transparent digital asset ecosystem in the QFC, in line with the highest international standards and best practices. It also sets high standards for the process of asset tokenization and puts in place a trusted technology infrastructure that will ensure trust and confidence among consumers, service providers, and industry stakeholders.
The QFC Digital Assets Framework is the result of a process of extensive consultation and collaboration with industry stakeholders, which was coordinated through an advisory group comprised of thirty-seven domestic and international organizations from the financial, technology, and legal sectors.
“The 2024 Digital Assets Regulations is a huge milestone”
Since the launch of the QFC Digital Assets Lab in October 2023 over twenty start-ups and fintech firms have been accepted into the lab to develop, test, and commercialize their digital asset products and services. The operation of the QFC Digital Assets Lab took place in parallel with the QFC Digital Assets Framework emphasizing the important role that industry engagement and collaboration has played in the development of the framework.
Speaking on this occasion, H.E. Sheikh Bandar bin Mohammed bin Saoud Al Thani, Qatar Central Bank Governor, said: “Launching the 2024 Digital Assets Regulations marks a significant milestone in our journey towards realising the Third Financial Sector Strategy.” He noted that this framework will create significant opportunities and support establishing a robust regulatory environment within the financial sector. This will support Qatar’s digital transformation goals, in line with the Third National Development Strategy, the final phase of the Qatar National Vision 2030.
Qatar to attract domestic and international players
According to Yousuf Mohamed Al-Jaida, Chief Executive Officer of QFC, the introduction of the Digital Assets Framework 2024 is a blueprint for developing, applying and operating digital assets. He anticipated that this regulatory clarity would attract both domestic and international players, boosting Qatar’s financial services sector competitiveness.
Michael Ryan, CEO, QFCRA, also commented: “By introducing a comprehensive and robust framework for the regulation of digital assets, we are laying the groundwork for the development of a thriving and innovative financial services sector that can leverage the opportunities offered by new technologies and emerging market.”
Following the launch of the QFC Digital Assets Framework 2024, companies can now apply for a license to perform token service provider activities. Prior to this, Qatar launched its DLT regulations.
