• Qatar’s central bank just launched the QFC Digital Assets Framework 2024.
• The framework provides the legal and regulatory foundation of the nation’s digital assets sector.

Qatar, recognizing the need to keep up with the disruptions and increased competition brought about by digital asset innovations, just launched a new regulatory framework centering on them. This September, the Middle Eastern Asian country launched the QFC Digital Assets Framework 2024.

The QFC Digital Assets Framework 2024

According to the official statement of Sheikh Bandar bin Mohammed bin Saoud Al Thani, Governor of the Qatar Central Bank, the framework was anchored on the goals of the nation’s Third Financial Sector Strategic Plan. It was established through the joint efforts of the Qatar Financial Centre Authority (QFCA) and Qatar Financial Centre Regulatory Authority (QFCRA). In addition, the regulatory blueprint was the result of extensive consultation and collaboration with an advisory group comprised of 37 national and international organizations operating in the financial technology (FinTech) niche.

The central bank head explained that the new digital assets framework forms the legal and regulatory foundation of digital assets within the Qatar jurisdiction. Its scope includes the exchange, tokenization, legal recognition of property rights, transfer, and custody arrangements in relation to these assets. The model also provides the blueprint for the legal recognition of smart contracts.

The framework ensures transparency, integrity, and security in Qatar’s digital asset ecosystem. Its crafters designed its provisions to harmonize with the highest international standards and best practices worldwide. Moreover, it guarantees trust and confidence among consumers, industry stakeholders, and service providers.

Qatar’s central bank governor noted that the framework aligns with the final phase of the Qatar National Vision 2030. This aims to position the nation as an advanced and sustainable society, bringing about a high standard of living for its populace.

Yousuf Mohamed Al-Jaida, the CEO of QFC, said that the new regulation will provide regulatory clarity in the treatment of digital assets in the country. He believes the framework will be instrumental in attracting more domestic and international players within the financial services sector.

About the QFC

The QFC, based in Doha, operates under an independent legal, regulatory, business, and tax regime. This is basically the same as the dynamics of free economic zones that enforce their by-laws outside of the mainland.

Furthermore, the financial center allows 100% foreign ownership and 100% repatriation of profits made by registered foreign investors. Meanwhile, its tax regime only offers a 10% tax on domestically sourced profit. It doesn’t collect personal income tax, wealth tax, or other obligatory payments/donations under the virtue of the Muslim Zakat.