The Qatar Financial Centre Authority (QFCA) and the Qatar Financial Centre Regulatory Authority (QFCRA) unveiled a regulatory framework for digital assets. The framework is designed to regulate digital assets within the Qatar Financial Centre (QFC).
The framework covers various aspects of digital asset management. It includes tokenization process, legal recognition of property rights in tokens and their underlying assets, custody arrangements, as well as the transfer and exchange of digital assets, according to an official announcement.
It also includes provisions for the legal recognition of smart contracts. “The framework will ensure a secure and transparent digital asset ecosystem in the QFC, in line with the highest international standards and best practices,” the announcement read.
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QFC Operates Independent of Qatar’s Mainland
Similar to the free economic zones in the UAE, the QFC operates independently from Qatar’s mainland. The QFC offers its own legal, regulatory, tax, and business frameworks.
Among its benefits, the QFC allows up to 100% foreign ownership and repatriation of profits, alongside a competitive 10% corporate tax rate on locally sourced profits.
Qatar’s new digital assets framework = a massive move.
They’re aiming to be a crypto hub.
Follow where the smart money is going.
Bullish on Qatar leading the next wave of digital finance. https://t.co/5VfzOGqM2V
— Luka (@loukas1st) September 2, 2024
According to the announcement, the newly established digital assets framework sets benchmarks for asset tokenization and aims to foster trust among consumers, service providers, and other stakeholders in the digital finance space.
His Excellency Sheikh Bandar bin Mohammed bin Saoud Al Thani, Governor of the Qatar Central Bank, hailed the new regulations as a key milestone in Qatar’s “Third Financial Sector Strategy.”
Launched in November 2023, this strategy focuses on creating a vibrant capital market and embracing emerging technologies to drive the nation’s economic potential.
The digital assets framework was developed in collaboration with an advisory group comprising 37 domestic and international organizations from the finance, technology, and legal sectors.
Since the launch of its Digital Assets Lab in October 2023, the QFC has onboarded more than 20 startups to develop, test, and commercialize innovative products and services, further solidifying its position as a leader in digital finance.
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Qatar Launches First Phase Of CBDC Project
In June, the QCB announced the launch of the first phase of its Central Bank Digital Currency (CBDC) project. The initiative marks a pivotal step in Qatar’s journey towards modernizing its financial sector and aligning with global advancements in digital currency.
The first phase of the project is set to last until October. During this period, the central bank will focus on testing and developing selected applications of the CBDC, particularly for settling large payments with both local and international banks.
Alongside the QCB, Abu Dhabi has also been actively attracting crypto service providers and Web3 companies, establishing itself as a cryptocurrency hub.
In May 2024, crypto options trading platform QCP Capital received in-principle approval for regulated digital asset activities from ADGM. QCP is now the first Singapore-based crypto market maker and broker to receive a preliminary license in the region.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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