The Qatar Financial Centre (QFC) in Doha has unveiled a comprehensive regulatory framework aimed at overseeing and fostering the development of digital assets.
The Qatar Financial Centre (QFC) in Doha has unveiled a comprehensive regulatory framework aimed at overseeing and fostering the development of digital assets. This new regime, established by the Qatar Financial Centre Authority (QFCA) and the Qatar Financial Centre Regulatory Authority (QFCRA), lays the groundwork for the creation, management, and regulation of digital assets within the QFC.
The newly introduced rules cover a wide array of areas essential to the digital asset ecosystem. These include the processes for tokenization, which entails converting assets into digital tokens, and the legal recognition of property rights associated with these tokens and their underlying assets. The framework also addresses the important aspects of custody arrangements, the transfer and exchange of digital assets, and the legal status of smart contracts.
Much like the free economic zones in the United Arab Emirates, the QFC operates with its own distinct legal, regulatory, tax, and business framework, separate from the rest of Qatar. Among the benefits for businesses within the QFC are the allowance of up to 100% foreign ownership and the ability to fully repatriate profits. Additionally, the QFC imposes a competitive corporate tax rate of just 10% on locally sourced profits, making it an attractive hub for international business.
Qatar Central Bank Governor His Excellency Sheikh Bandar bin Mohammed bin Saoud Al Thani said: “Launching the 2024 Digital Assets Regulations marks a significant milestone in our journey towards realising the Third Financial Sector Strategy.”
Launched in November 2023, this strategy is focused on creating a robust capital market to unlock the nation’s economic potential, part of the final phase of the Qatar National Vision 2030. Sheikh Bandar expressed confidence that the new digital assets framework would open up considerable opportunities within Qatar’s financial sector.
The development of this framework is the result of extensive collaboration and consultation with industry stakeholders. The QFC worked closely with an advisory group comprising 37 domestic and international organizations from the finance, technology, and legal sectors to ensure the framework's robustness and relevance.
Qatar Financial Centre Introduces Comprehensive Digital Assets Framework
The Qatar Financial Centre (QFC) in Doha has unveiled a comprehensive regulatory framework aimed at overseeing and fostering the development of digital assets. This new regime, established by the Qatar Financial Centre Authority (QFCA) and the Qatar Financial Centre Regulatory Authority (QFCRA), lays the groundwork for the creation, management, and regulation of digital assets within the QFC.
The newly introduced rules cover a wide array of areas essential to the digital asset ecosystem. These include the processes for tokenization, which entails converting assets into digital tokens, and the legal recognition of property rights associated with these tokens and their underlying assets. The framework also addresses the important aspects of custody arrangements, the transfer and exchange of digital assets, and the legal status of smart contracts.
Much like the free economic zones in the United Arab Emirates, the QFC operates with its own distinct legal, regulatory, tax, and business framework, separate from the rest of Qatar. Among the benefits for businesses within the QFC are the allowance of up to 100% foreign ownership and the ability to fully repatriate profits. Additionally, the QFC imposes a competitive corporate tax rate of just 10% on locally sourced profits, making it an attractive hub for international business.
Qatar Central Bank Governor His Excellency Sheikh Bandar bin Mohammed bin Saoud Al Thani said: “Launching the 2024 Digital Assets Regulations marks a significant milestone in our journey towards realising the Third Financial Sector Strategy.”
Launched in November 2023, this strategy is focused on creating a robust capital market to unlock the nation’s economic potential, part of the final phase of the Qatar National Vision 2030. Sheikh Bandar expressed confidence that the new digital assets framework would open up considerable opportunities within Qatar’s financial sector.
The development of this framework is the result of extensive collaboration and consultation with industry stakeholders. The QFC worked closely with an advisory group comprising 37 domestic and international organizations from the finance, technology, and legal sectors to ensure the framework's robustness and relevance.
