The Qatar Central Bank (QCB), in collaboration with the Qatar Financial Centre Authority (QFCA) and Qatar Financial Centre Regulatory Authority (QFCRA), has introduced the QFC Digital Assets Framework 2024. This new regulatory regime is designed to oversee the creation and management of digital assets within the Qatar Financial Centre (QFC).
Comprehensive framework for digital assets
The QFC Digital Assets Framework 2024 marks a significant development in Qatar’s financial sector. It lays out a clear legal and regulatory foundation for digital assets, including tokenization, property rights in tokens and their underlying assets, custody, transfer, and exchange processes. Additionally, the framework legally recognizes smart contracts, ensuring that digital transactions are secure and transparent.
Developed as part of the Third Financial Sector Strategic Plan, the framework aligns with international standards and best practices, aiming to establish a secure and trustworthy digital asset ecosystem. It sets high standards for asset tokenization and introduces a robust technology infrastructure to build trust among consumers, service providers, and other stakeholders.
Collaboration with industry stakeholders
The development of the QFC Digital Assets Framework resulted from extensive consultations with industry stakeholders. An advisory group of 37 domestic and international organizations from various sectors played a crucial role in shaping the framework. Their collective input has ensured that the framework is comprehensive and meets the needs of the evolving digital asset market.
Since the QFC Digital Assets Lab was launched in October 2023, over 20 start-ups and fintech companies have been accepted to develop and commercialize their digital asset products. The lab’s activities ran parallel to creating the Digital Assets Framework, highlighting the importance of industry collaboration in its development.
Boosting Qatar’s financial competitiveness
Qatar Central Bank Governor H.E. Sheikh Bandar bin Mohammed bin Saoud Al Thani stated that the 2024 Digital Assets Regulations launch is a major milestone in Qatar’s journey towards achieving its Third Financial Sector Strategy. He emphasized that this framework would create significant opportunities and contribute to establishing a strong regulatory environment in the financial sector. The framework aligns with Qatar’s broader digital transformation goals, as outlined in the Third National Development Strategy and the Qatar National Vision 2030.
Yousuf Mohamed Al-Jaida, QFC’s Chief Executive Officer, added that the new framework provides a clear blueprint for developing and operating digital assets in Qatar. He expects this regulatory clarity to attract both domestic and international players, enhancing the competitiveness of Qatar’s financial services sector.
Michael Ryan, CEO of QFCRA, echoed these sentiments, noting that the comprehensive nature of the framework lays a strong foundation for a thriving financial services sector that can leverage the potential of new technologies and emerging markets. With the QFC Digital Assets Framework 2024 launch, companies are now invited to apply for licenses to perform token service provider activities, further advancing Qatar’s global digital asset market position.