Originally published on: September 02, 2024
Qatar has taken a significant step forward in the world of digital assets by introducing a comprehensive regulatory regime. The Qatar Financial Centre (QFC) in Doha announced a framework that paves the way for the regulation and creation of digital assets within the country.
The Qatar Financial Centre Authority (QFCA) and the Qatar Financial Centre Regulatory Authority (QFCRA) have collaborated to establish rules that cover tokenization processes, legal recognition of property rights, custody arrangements, and smart contracts. This framework aims to ensure security and transparency within the digital asset ecosystem in the QFC, following international standards.
Similar to the free economic zones in the United Arab Emirates, the QFC operates independently from the rest of Qatar, offering its own legal, regulatory, tax, and business framework. The QFC allows for 100% foreign ownership, 100% profit repatriation, and a competitive 10% corporate tax rate on locally sourced profits.
Qatar Central Bank Governor Sheikh Bandar bin Mohammed bin Saoud Al Thani believes that the newly launched regulations are a crucial milestone in achieving the country’s Third Financial Sector Strategy, which was initiated in November 2023. This strategy aims to create a capital market and unlock economic potential by embracing emerging technologies for digital transformation.
The digital assets framework in Qatar was developed in collaboration with input from a diverse advisory group of 37 domestic and international organizations in finance, technology, and legal sectors. Since the launch of the Digital Assets Lab in October 2023, the QFC has welcomed over 20 startups to develop, test, and commercialize products and services within the digital asset space.
