Tribune News Network
doha
In a significant move aligned with the Third Financial Sector Strategy issued by the Qatar Central Bank, the Qatar Financial Centre Authority (QFCA) and Qatar Financial Centre Regulatory Authority (QFCRA) have unveiled the QFC Digital Assets Framework. This new framework marks a crucial step in the regulation and creation of digital assets within the Qatar Financial Centre (QFC).
The QFC Digital Assets Framework 2024 establishes a robust legal and regulatory foundation for digital assets. It covers various aspects including the process of tokenization, legal recognition of property rights in tokens and their underlying assets, custody arrangements, transfer, and exchange.
Additionally, the framework provides legal recognition for smart contracts, ensuring a secure and transparent digital asset ecosystem that adheres to international standards and best practices.
This framework reflects the high standards set for asset tokenization and establishes a trusted technology infrastructure designed to foster trust and confidence among consumers, service providers, and industry stakeholders. The development of the framework followed extensive consultation with a diverse advisory group comprising thirty-seven domestic and international organizations from the financial, technology, and legal sectors.
Since the introduction of the QFC Digital Assets Lab in October 2023, over twenty startups and fintech firms have been accepted into the lab. These companies are working on developing, testing, and commercializing their digital asset products and services. The operation of the Digital Assets Lab has been a crucial part of the framework’s development, highlighting the importance of industry engagement and collaboration.
Commenting on the launch, Qatar Central Bank Governor Sheikh Bandar bin Mohammed bin Saoud Al Thani said, "The introduction of the 2024 Digital Assets Regulations is a pivotal milestone in our journey towards implementing the Third Financial Sector Strategy.”
He emphasised that the framework will create significant opportunities and contribute to establishing a robust regulatory environment, supporting Qatar’s digital transformation goals in alignment with the Third National Development Strategy and the Qatar National Vision 2030.
Expressing pride in the new framework, QFC Chief Executive Officer Yousuf Mohamed Al Jaida said, "The Digital Assets Framework 2024 demonstrates our commitment to a robust regulatory regime aligned with global best practices. We aim to provide a blueprint for the development, application, and operation of digital assets, fostering market trust and confidence. We expect this clarity to attract both domestic and international players, enhancing the competitiveness of Qatar’s financial services sector.”
QFCRA CEO Michael Ryan said, "By introducing a comprehensive and robust regulation for digital assets, we are laying the groundwork for a thriving and innovative financial services sector that can harness the opportunities presented by new technologies and emerging markets.”