The Qatar Financial Centre Authority (QFCA) and Qatar Financial Centre Regulatory Authority (QFCRA) jointly announced the launch of a new framework that establishes legal and regulatory foundations for digital assets.
The QFC Digital Assets Framework 2024 covers crucial aspects such as tokenization, property rights in tokens, custody arrangements, transfer, and exchange.
It also provides legal recognition for smart contracts, aiming to create a secure and transparent digital asset ecosystem aligned with international standards.
"Launching the 2024 Digital Assets Regulations marks a significant milestone in our journey towards realizing the Third Financial Sector Strategy," H.E. Sheikh Bandar bin Mohammed bin Saoud Al Thani, Qatar Central Bank Governor, said.
He highlighted that this framework would create substantial opportunities and support a robust regulatory environment within the financial sector.
The framework's development involved extensive consultation with industry stakeholders, including 37 domestic and international organizations from the financial, technology, and legal sectors.
It's worth noting that Middle Eastern regulators have been rolling out crypto-related legislation and guidelines over the past few years. In March 2022, Dubai established the Virtual Asset Regulatory Authority (VARA) to oversee the crypto sector.
Similarly, Bahrain has implemented regulations for crypto assets, with the Central Bank of Bahrain overseeing the licensing of crypto exchanges.
Other countries in the region have taken more cautious approaches. Saudi Arabia, for instance, has historically been more conservative regarding cryptocurrency regulations, though it has shown increasing interest in blockchain technology.