Qatar introduces new regulations governing digital assets.
The Qatar Financial Centre (QFC), a business hub located in Doha, has introduced a comprehensive regulatory framework for digital assets. This regime was announced by the QFC's governing bodies, the Qatar Financial Centre Authority (QFCA) and the Qatar Financial Centre Regulatory Authority (QFCRA), laying the groundwork for digital assets within the QFC.
The new rules encompass tokenization processes, legal recognition of property rights in tokens and their underlying assets, as well as provisions for custody, transfer, and exchange. Additionally, the framework includes legal recognition of smart contracts.
Similar to the free economic zones in the United Arab Emirates, which function autonomously from the mainland, the QFC operates with its own distinct legal, regulatory, tax, and business framework, separate from the rest of Qatar.
The QFC allows for up to 100% foreign ownership and complete repatriation of profits. It also imposes a competitive corporate tax rate of 10% on locally sourced profits.
Supporting Qatar’s digital transformation As per the announcement, this framework is designed to ensure that the digital asset ecosystem within the QFC remains secure, transparent, and aligned with international standards. The QFC emphasized that these regulations set benchmarks for asset tokenization while fostering trust and confidence among consumers, service providers, and stakeholders.
His Excellency Sheikh Bandar bin Mohammed bin Saoud Al Thani, Governor of the Qatar Central Bank, remarked that these newly introduced regulations mark a significant step in the country's "Third Financial Sector Strategy." He believes that the framework will open up substantial opportunities within Qatar’s financial sector.
Launched in November 2023, Qatar’s Third Financial Sector Strategy aims to develop a capital market that will unlock the country’s economic potential. This plan includes the adoption of emerging technologies to accelerate digital transformation. The digital assets framework is the result of collaboration and consultation with industry stakeholders, developed with input from an advisory group of 37 domestic and international organizations across finance, technology, and legal sectors.
Since the launch of the Digital Assets Lab in October 2023, the QFC has welcomed over 20 startups to develop, test, and commercialize their products and services.
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