The Qatar Financial Centre (QFC) has launched its digital assets framework, a comprehensive and innovative regime for the creation and regulation of digital assets in the QFC, paving way for companies to offer token services.
The development of the framework, which is one of the important goals established by the Third Financial Sector Strategic Plan, provides not only legal recognition of smart contracts but also establishes legal and regulatory foundation for tokenisation, a key tool to protect sensitive data.
The digital assets framework was launched by the Qatar Financial Centre Authority (QFCA) and Qatar Financial Centre Regulatory Authority (QFCRA) in line with the Third Financial Sector Strategy issued by the Qatar Central Bank (QCB).
"This framework will create significant opportunities and support establishing a robust regulatory environment within the financial sector. This will support Qatar’s digital transformation goals, in line with the Third National Development Strategy, the final phase of the Qatar National Vision 2030," said Sheikh Bandar bin Mohamed bin Saoud al-Thani, QCB governor.
The QFC digital assets framework 2024 establishes the legal and regulatory foundation for digital assets, including the process of tokenisation, legal recognition of property rights in tokens and their underlying assets, custody arrangements, transfer, and exchange.
The framework will ensure a secure and transparent digital asset ecosystem in the QFC, in line with the highest international standards and best practices. It also sets high standards for the process of asset tokenisation and puts in place a trusted technology infrastructure that will ensure trust and confidence among consumers, service providers, and industry stakeholders.
"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,” according to Yousuf Mohamed al-Jaida, chief executive officer, QFC.
The QFC digital assets framework is the result of a process of extensive consultation and collaboration with industry stakeholders, which was co-ordinated through an advisory group comprised of thirty-seven domestic and international organisations from the financial, technology, and legal sectors.
“By introducing a comprehensive and robust framework for the regulation of digital assets, we are laying the groundwork for the development of a thriving and innovative financial services sector that can leverage the opportunities offered by new technologies and emerging market,” said Michael Ryan, chief executive officer, QFCRA.
Since the launch of the QFC Digital Assets Lab in October 2023, more than 20 start-ups and fintech firms have been accepted into the lab to develop, test, and commercialise their digital asset products and services.
The operation of the QFC digital assets lab took place in parallel with the QFC digital assets framework emphasising the important role that industry engagement and collaboration has played in the development of the framework.
![The digital assets framework was launched by the Qatar Financial Centre Authority and Qatar Financial Centre Regulatory Authority in line with the Third Financial Sector Strategy issued by the Qatar Central Bank. The digital assets framework was launched by the Qatar Financial Centre Authority and Qatar Financial Centre Regulatory Authority in line with the Third Financial Sector Strategy issued by the Qatar Central Bank.](https://cdn4.premiumread.com/?url=https://gulf-times.com/gulftimes/uploads/images/2024/09/01/217670.jpg&w=800&q=100&f=webp)
The digital assets framework was launched by the Qatar Financial Centre Authority and Qatar Financial Centre Regulatory Authority in line with the Third Financial Sector Strategy issued by the Qatar Central Bank.