Qatar has officially unveiled its new regulatory framework for the digital asset market, according to a statement released by The Qatar Financial Centre (QFC) and the Qatar Financial Centre Regulatory Authority (QFCRA) on Sunday. The 2024 QFC Digital Assets Framework is designed to establish a robust legal and regulatory foundation for digital assets, including tokenization, custody, transfer, and exchange. This new framework also legally recognizes smart contracts and acknowledges property rights in tokens and the assets they represent.

The development of this framework involved extensive consultation with industry professionals and businesses. An advisory group, consisting of 37 organizations from the financial, technology, and legal sectors both in Qatar and internationally, played a pivotal role in shaping the framework. The consultation process focused on refining the structure, content, and practicality of the proposed regulations, with the deadline for comments set for January 2, 2024.

QFC Collaborates with Startups to Shape the Future of Digital Assets

Since the establishment of the QFC Digital Assets Lab in October 2023, over twenty startups and fintech companies have joined the initiative to innovate, test, and launch their digital asset products and services. This collaboration between the QFC and industry players was integral to the development of the Digital Assets Framework. The framework now allows companies to apply for licenses to operate as token service providers under the new regulations.

Sheikh Bandar bin Mohammed bin Saoud Al Thani, Governor of the Qatar Central Bank, emphasized that the launch of the 2024 Digital Assets Regulations marks a significant milestone in Qatar's journey toward realizing the Third Financial Sector Strategy. He highlighted that this framework will create substantial opportunities and build a strong regulatory environment within the financial sector, aligning with Qatar's broader digital transformation goals and the Third National Development Strategy, which is part of the Qatar National Vision 2030.

Timely Completion of Qatar's Digital Assets Framework

In July, Henk Jan Hoogendoorn, Chief of Financial Services Sector at the Qatar Financial Centre, confirmed that Qatar's digital assets framework was on track for completion and implementation by the fourth quarter of this year. This announcement followed the central bank's finalization of its central bank digital currency (CBDC) infrastructure, signaling Qatar's commitment to staying at the forefront of digital asset innovation.