Qatar took a major step in its financial sector by introducing a comprehensive regulatory framework for digital assets.
The Qatar Financial Centre (QFC) in Doha has implemented this new framework with the help of its regulatory bodies, the Qatar Financial Centre Authority (QFCA) and the Qatar Financial Centre Regulatory Authority (QFCRA).
These rules are designed to guide digital asset management within the QFC, covering areas like tokenization, legal recognition of property rights linked to tokens, and custody, transfer, and exchange of digital assets. It also legally acknowledges smart contracts.
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The QFC has stated that the goal of this framework is to create a secure and transparent digital asset ecosystem that aligns with global standards, building trust among consumers, service providers, and other stakeholders. The framework was developed with input from 37 organizations, both local and international, from finance, technology, and legal sectors.
Qatar Central Bank Governor Sheikh Bandar bin Mohammed bin Saoud Al Thani highlighted the importance of these regulations as part of the country's "Third Financial Sector Strategy," which is set to open up significant opportunities in Qatar's financial sector.
The CEO of QFC, Yousuf Mohamed Al-Jaida, also commented:
We are proud to set a blueprint for developing, applying, and operating digital assets, that promotes market trust and confidence. We anticipate that this regulatory clarity will attract both domestic and international players, boosting Qatar’s financial services sector competitiveness.
The QFC operates under its own set of laws, separate from Qatar's broader legal framework. This setup offers benefits like up to 100% foreign ownership, full profit repatriation, and a low 10% corporate tax on local profits, all while helping businesses tap into Qatar's fast-growing trade and investment opportunities.
The new digital assets framework marks another important step in advancing Qatar's financial sector and embracing digital finance.
In other news, Nigeria has recently announced plans to introduce a new bill aiming to reform its tax system with a special focus on digital currencies.
