The Qatar Financial Centre (QFC) has announced a new legal framework for digital assets, marking a major step forward in regulating the sector in the Gulf state.
On September 1, the QFC in Doha issued a new law, which was developed with the participation of 37 domestic and foreign organizations. The law sets out clear regulations on tokenization, ownership of tokens and underlying assets, as well as storage, transfer and exchange of digital assets. Notably, the law recognizes the legality of smart contracts, opening up opportunities for blockchain technology in Qatar.
The law also requires token service providers to comply with anti-money laundering (AML) and counter-terrorism financing (CFT) regulations, including thorough customer due diligence, ensuring transparency in token transfers, and securely handling and storing tokens.
In addition, investor protection measures are in place to strengthen market integrity and ensure fair treatment for all participants. These include clear disclosure requirements for investment tokens and strict controls on token custody and exchange, thereby contributing to building trust in the digital asset ecosystem.
According to His Excellency Sheikh Bandar bin Mohammed bin Saoud Al Thani, Governor of the Qatar Central Bank (QCB), the new law aims to support Qatarâs digital transformation, ensuring security and transparency in the digital asset ecosystem at QFC.
In addition, Michael Ryan, CEO of the Qatar Financial Center Regulatory Authority (QFCRA), said the new law allows companies to apply for licenses to operate digital assets in the region. QFC operates independently from the main territory of Qatar, with its own legal, regulatory, tax and business framework, creating an attractive investment environment.
The introduction of a new legal framework for digital assets by the Qatar Financial Center, a special economic zone in Qatar with its own legal, regulatory and tax system, marks a significant change in the country's policy, as cryptocurrencies have been completely banned in Qatar since 2020.
