Key Insights
- Qatar Financial Centre introduces comprehensive “Digital Assets Framework 2024”
- Framework covers tokenization, property rights, custody, and smart contracts
- QFC now accepting license applications for token service provider activities
DOHA (MarketsXplora) – The Qatar Financial Centre (QFC), a special economic zone in Doha, has introduced a comprehensive regulatory framework for digital assets, marking a significant step in the region’s growing cryptocurrency landscape.
The “QFC Digital Assets Framework 2024,” announced on Sunday, aims to provide greater clarity and establish a robust legal and regulatory foundation for crypto assets. The framework encompasses various aspects of the digital asset ecosystem, including tokenization, property rights in tokens, custody arrangements, and transfer and exchange mechanisms.
“The framework sets high standards for the process of asset tokenization and puts in place a trusted technology infrastructure that will ensure trust and confidence among consumers, service providers, and industry stakeholders,” the QFC stated.
Notably, the framework also outlines the legal recognition of smart contracts.
The QFC emphasized that the framework was developed following “extensive consultation” with an advisory group comprising 37 domestic and international organizations. This initiative is part of Qatar’s broader “Third Financial Sector Strategy,” which aims to position the country as a regional leader in financial innovation.
In a move to foster crypto innovation, the QFC has already welcomed over 20 startups and fintech firms into its Digital Assets Lab, launched in October 2023. This program is designed to facilitate the development and commercialization of crypto asset products.
The QFC, an “onshore business and financial center” in Doha, offers a distinct legal, regulatory, and tax environment. It allows up to 100% foreign ownership and full profit repatriation, with a competitive 10% corporate tax rate on locally sourced profits.
With the framework now in place, the QFC announced that companies can apply for licenses to perform token service provider activities, potentially opening new avenues for crypto businesses in the region.