Qatar Launches Regulatory Framework for Digital Assets to Drive Digital Transformation
Qatar has launched a new regulatory framework to oversee and regulate digital assets, according to a joint statement from the Qatar Financial Centre (QFC) and its regulatory authority (QFCRA). This framework aims to establish clear legal rules for the operation of digital assets, including tokenizing assets and recognizing ownership rights for digital and tangible assets. It also includes regulations for custodial services, transactions, and trading platforms, while acknowledging the legality of smart contracts.
Broad Participation in Developing the Regulatory Framework
Over the past year, an advisory group consisting of 37 local and international organizations from financial, technological, and legal sectors gathered input from industry specialists and companies. Final feedback was collected in January 2024, contributing to the creation of a practical, well-structured regulatory framework.
Role of Startups in the Digital Assets Sector
In October 2023, the Qatar Financial Centre established a working group focused on digital assets, which included participation from over 20 startups and fintech companies. This collaboration led to the development of numerous products and services related to digital assets. It is part of the Centre’s broader efforts to launch a comprehensive regulatory framework for this sector.
Central Bank Governor’s Statement
On the occasion of the framework’s launch, Qatar Central Bank Governor Sheikh Bandar bin Mohammed bin Saoud Al Thani stated, “The launch of the 2024 Digital Assets Regulations marks a key milestone in our journey towards achieving the goals of the third financial sector strategy.” He further emphasized that the framework would create new opportunities and provide a clear regulatory environment for digital assets, aligning with Qatar’s digital transformation goals and the Third National Development Strategy, which is the final phase of Qatar National Vision 2030.
Confirmation of Timely Completion
In July, Henk Jan Hoogendorn, Head of the Financial Sector at QFC, confirmed that the regulatory framework was on schedule and would be fully implemented by the fourth quarter of the year. He added that the Qatar Central Bank had recently completed the infrastructure necessary for launching its Central Bank Digital Currency (CBDC).
How Does the New Regulatory Framework Support Qatar’s Digital Economy?
The launch of this framework reflects Qatar’s commitment to developing an advanced regulatory environment for digital assets, helping attract more investment and drive innovation. It is a crucial step toward enhancing financial stability and supporting the digital transformation that is part of Qatar’s Vision 2030.
Read Also: Tarabut Acquires UK Payments Platform Vyne
