Qatar Unveils Framework to Regulate Digital Assets

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

Qatar has launched a regulatory framework to manage and supervise the expanding digital asset market actively, according to a joint statement from The Qatar Financial Centre (QFC) and Qatar Financial Centre Regulatory Authority (QFCRA) on Sunday.

The statement revealed that the 2024 QFC Digital Assets Framework establishes the legal and regulatory foundation for digital assets. Notably, it covers tokenization. It also acknowledges property rights in tokens and the assets they represent. Further, the framework includes regulations for custody, transfer and exchange. In addition, it legally recognizes smart contracts.

The regulatory bodies actively sought feedback from industry professionals and businesses. An advisory group, consisting of 37 organizations from the financial, technology, and legal sectors both domestically and internationally, coordinated a consultation and collaboration process to develop the framework.

To enhance the proposed framework, they focused on its structure, content, and practicality. The deadline for comments was Jan. 2, 2024.

Since the QFC Digital Assets Lab was established in October 2023, it has admitted over twenty startups and fintech companies. These companies are working to innovate, test, and launch their digital asset products and services. This initiative ran alongside the development of the QFC Digital Assets Framework. Notably, it highlights industry involvement and collaboration in shaping the framework.

Companies can now actively apply for a license to engage in token service provider activities, thanks to the introduction of the QFC Digital Assets