Qatar Launches New Regulatory Guidelines for Cryptocurrencies

The Qatar Financial Centre (QFC), located in Doha, has introduced a detailed set of regulations for digital assets. The regulatory framework, devised by the Qatar Financial Centre Authority (QFCA) and the Qatar Financial Centre Regulatory Authority (QFCRA), aims to provide a structured approach for managing digital assets within the QFC.

This new framework outlines procedures for tokenization, establishes property rights for tokens and their underlying assets, and sets guidelines for custody, transfer, and exchange of these assets. Additionally, it recognizes the legal status of smart contracts.

Operating similarly to the UAE’s free economic zones, the QFC offers an independent legal and business environment from the broader Qatari laws. It promotes foreign investment by allowing 100% foreign ownership and the full repatriation of profits, alongside a competitive 10% corporate tax on local earnings.

The introduction of this framework is seen as a pivotal development under Qatar’s “Third Financial Sector Strategy” launched in November 2023, which focuses on leveraging new technologies to boost economic growth and digital transformation. The strategy, highlighted by Qatar Central Bank Governor His Excellency Sheikh Bandar bin Mohammed bin Saoud Al Thani, is expected to bring substantial growth opportunities to the financial sector.

The digital assets regulations were formed through extensive consultations with both domestic and international experts from the finance, technology, and legal sectors. This collaborative effort also led to the establishment of the Digital Assets Lab in October 2023, which now supports over 20 startups in developing and marketing their digital products and services. This initiative ensures that the digital asset operations within the QFC remain secure, transparent, and up to international standards, fostering trust among consumers, providers, and stakeholders.

For more news, find me on Twitter Giannis Andreou and subscribe to My channels Youtube and Rumble

What is your opinion on this particular topic?  Leave us your comment below!  We are always interested in your opinion!