The QFC, a financial hub in Doha, Qatar, has introduced new rules for digital assets.
Here’s all you need to know about the latest crypto news: The Qatar Financial Centre (QFC), a prominent business hub in Doha, Qatar, has introduced a comprehensive regulatory framework designed to oversee the creation and management of digital assets.
This initiative, spearheaded by the Qatar Financial Centre Authority (QFCA) and the Qatar Financial Centre Regulatory Authority (QFCRA), lays the groundwork for a robust digital asset ecosystem within the QFC.
The new rules cover a wide range of areas, including tokenization processes, legal recognition of property rights in tokens and their underlying assets, custody arrangements, and the transfer and exchange of these assets. Additionally, the framework includes provisions for the legal recognition of smart contracts.
Much like the free economic zones in the United Arab Emirates, the QFC operates under its own distinct legal, regulatory, tax, and business framework, separate from the rest of Qatar. This unique structure allows for up to 100% foreign ownership, full repatriation of profits, and imposes a competitive corporate tax rate of 10% on locally sourced profits.
The QFC’s new framework is designed to ensure that the digital asset ecosystem within its jurisdiction is both secure and transparent, adhering to international standards. The rules set out clear standards for asset tokenization, aiming to build trust and confidence among consumers, service providers, and other stakeholders.
Qatar Central Bank Governor, His Excellency Sheikh Bandar bin Mohammed bin Saoud Al Thani, hailed these regulations as a significant milestone in advancing the country’s “Third Financial Sector Strategy.” He believes that this framework will unlock substantial opportunities within Qatar’s financial sector.
Launched in November 2023, Qatar’s Third Financial Sector Strategy aims to create a vibrant capital market to drive the nation’s economic growth, with a strong emphasis on embracing emerging technologies to accelerate digital transformation.
The digital assets framework is the product of extensive collaboration and consultation with industry stakeholders. The QFC developed this framework with input from an advisory group comprising 37 domestic and international organizations across the finance, technology, and legal sectors.
Since the launch of its Digital Assets Lab in October 2023, the QFC has welcomed over 20 startups to develop, test, and commercialize their products and services, further cementing its position as a leader in digital innovation.
