The Middle East is making strides in crypto adoption and regulatory development. Qatar now adds to that by introducing a comprehensive digital assets framework. More specifically, the regulations were introduced in the Qatar Financial Centre (QFC) by the Qatar Financial Centre Authority (QFCA) and Qatar Financial Centre Regulatory Authority (QFCRA).
Like the UAE’s multiple free zones, the QFC is an independent economic zone aimed at fostering businesses and innovation in various fields. It allows 100% foreign ownership of businesses and charges a low 10% tax, making it attractive for all kinds of ventures. With digital assets regulations in place, Web3 businesses can now take advantage of the economic zone and set up shop here.
“Launching the 2024 Digital Assets Regulations marks a significant milestone in our journey towards realizing the Third Financial Sector Strategy,” Sheikh Bandar bin Mohammed bin Saoud Al Thani, Qatar Central Bank Governor, said. The ‘Third Financial Sector Strategy’ is Qatar’s vision to reach its highest economic capabilities. It includes recognizing emerging digital technologies to create regulations and spearhead adoption. That is what it has done for the digital assets industry.
Qatar’s Crypto Framework Recognizes a Broad Range of Crypto Activities
The legal framework in QFC will recognize digital assets, tokenization processes, Real World Assets (RWAs), property rights to underlying assets via tokens, custody, exchange, and more. Smart contracts will also be legally recognized, allowing for innovative implementation of daily legal and financial use cases. The framework was created by consulting and dialoguing with 37 local and international tech, finance, and legal firms to ensure legislation that addresses the markets effectively.
Furthermore, the QFC has kicked off digital asset development even before the framework’s introduction, as it has brought in over 20 startups to its Digital Assets Lab. The program, launched in October 2023, will help the economic zone create important blockchain infrastructure and commercialize products on a global scale.
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