Qatar Launches Digital Asset Regulation Framework

Qatar has begun to regulate digital assets. (Photo; Doc. Bitcoin News)

JAKARTA - Qatar continues to strengthen its position as a leading financial hub in the Middle East region by launching a new regulatory framework for digital assets. Qatar Financial Center (QFC) in Doha now invites local and international companies to apply for licenses as token service providers under the newly introduced regulation.

On September 1, the Qatar Financial Center Authority (QFCA) and Qatar Financial Center Regulatory Authority (QFCRA) launched the QFC Digital Assets Framework 2024. This framework is the legal basis for digital asset management in Qatar, covering various aspects such as tokenization, recognition of property rights to underlying tokens and assets, as well as arrangements for custodies, transfers, and digital asset exchanges. Not only that, but this framework also recognizes the legality of smart contracts.

This initiative aims to create a secure and transparent digital asset ecosystem in Qatar, while still complying with international standards. The technology presented in this framework is expected to increase consumer confidence, service providers, and stakeholders in the financial sector.

This regulatory framework is not unilaterally established. QFC involves various stakeholders in its manufacturing process, with input from advisory groups consisting of 37 domestic and international organizations in the financial, technology and legal sectors.

The Governor of the Central Bank of Qatar, Bandar bin Mohammed bin Saoud Al Thani, emphasized the importance of this regulatory framework in supporting the Qatar Third Financial Sector Strategy. He stated that this regulation will open up many new opportunities and strengthen the regulatory environment in line with Qatar's digital transformation goals, in accordance with the Third National Development Strategy and Qatar National Vision 2030.

Meanwhile, QFC CEO, Yousuf Mohamed Al-Jaida, said that this regulation demonstrates Qatari's commitment to building a regulatory regime in accordance with international best practices. According to him, the clarity of this regulation will attract more participants from within and outside the country, which will ultimately strengthen Qatar's financial services sector.

Michael Ryan, CEO of QFCRA, added that this regulatory framework opens up opportunities for dynamic and innovative financial services sectors, enabling this sector to take advantage of developing technology and markets.

With the launch of QFC Digital Assets Framework 2024, Qatar affirms its commitment to becoming a global leader in digital asset innovation and regulation, while strengthening its position as the main financial hub in the region.