a new regulation on crypto is coming

Qatar has also adopted new crypto regulations. 

It is called QFC Digital Assets Framework, where QFC stands for Qatar Financial Centre. The new regulatory framework has been developed by the Qatar Financial Centre Authority (QFCA) and the Qatar Financial Centre Regulatory Authority (QFCRA), in line with the Third Financial Sector Strategy of the Qatar Central Bank.

The new crypto regulation in Qatar

The QFC Digital Assets Framework of Qatar is a regulatory regime for digital assets that aims to be comprehensive and innovative. Its development was one of the important objectives set by the Third Financial Sector Strategic Plan.

The new crypto regulatory framework of Qatar specifically includes four guidance documents, with rules for investment tokens, amendments, rules for digital assets, and for crypto companies. 

Following its official launch, companies can apply for a license to carry out service provision activities in the crypto sector.

This new crypto regulation in Qatar establishes the legal and regulatory framework for digital assets, including, for example, the process of tokenization, the legal recognition of property rights on tokens and their underlying assets, custody agreements, transfer, and exchange. It also provides for the legal recognition of smart contracts. 

The objective is to ensure a safe and transparent ecosystem for digital assets in the country, in line with the highest international standards. In fact, it aims to establish high standards, for example for the process of tokenization of assets, and to implement a reliable technological infrastructure that guarantees trust and security.   

The crypto ecosystem in Qatar

Qatar does not seem to have a large crypto ecosystem yet, but with this new regulation it seems that it aims to have one.

On the other hand, one of the main global hubs for digital assets today is the nearby United Arab Emirates, where Dubai is located, so those are territories well-suited for this type of development. 

Qatar is a few kilometers away from the UAE, and its capital, Doha, is on the opposite shore of the Abu Dhabi gulf compared to Dubai. 

Furthermore, the QFC Digital Assets Framework was created through a process of extensive consultation and collaboration with industry stakeholders, and follows the launch of the QFC Digital Assets Lab in October 2023. The latter already includes over twenty start-ups and fintech companies that are developing, testing, and commercializing their products and services related to digital assets. 

It is by no means certain that Qatar will be able to follow in the footsteps of the UAE, but at the very least it seems that it wants to try. 

The comments of the executives

The Governor of the Central Bank of Qatar, H.E. Sheikh Bandar bin Mohammed bin Saoud Al Thani, stated: 

“The launch of the regulation on digital assets in 2024 marks a significant milestone in our journey towards the realization of the Third Financial Sector Strategy”.

He also added that the new framework will create significant opportunities and support the creation of a solid regulatory environment within the financial sector. 

The CEO of QFC, Yousuf Mohamed Al-Jaida, commented: 

“The introduction of the Digital Assets Framework 2024 underscores our commitment to creating a robust regulatory regime aligned with international best practices. We are proud to establish a model for the development, application, and operation of digital assets, which promotes market trust and security. We anticipate that this regulatory clarity will attract both national and international operators, strengthening the competitiveness of Qatar’s financial services sector.”

Finally, the CEO of QFCRA, Michael Ryan, added: 

“By introducing a complete and solid framework for the regulation of digital assets, we are laying the foundations for the development of a thriving and innovative financial services sector capable of seizing the opportunities offered by new technologies and emerging markets.”