The Qatar Financial Centre, a special economic zone in Doha, Qatar, has released a regulatory framework for digital assets as the region continues to see increased activities around cryptocurrency.
The “QFC Digital Assets Framework 2024” offers more clarity and sets the legal and regulatory foundation for crypto assets, including tokenization, property rights in tokens, custody arrangements, transfer and exchange, according to the QFC’s statement released on Sunday.
“The framework sets high standards for the process of asset tokenization and puts in place a trusted technology infrastructure that will ensure trust and confidence among consumers, service providers, and industry stakeholders,” the QFC said, adding that the framework also details the legal recognition of smart contracts.
According to the QFC, the framework was established after “extensive consultation” from an advisory group comprised of 37 domestic and international organizations. It is part of Qatar’s “Third Financial Sector Strategy,” which aims to create a financial and capital market that leads the region in innovation.
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In a drive for crypto innovation, the QFC has accepted over 20 startups and fintech firms into the QFC Digital Assets Lab — launched in October 2023 — to develop and commercialize their crypto asset products.
The QFC is an “onshore business and financial center” located in Doha. It offers its own legal, regulatory and tax environment, allowing up to 100% foreign ownership and 100% repatriation of profits. According to its website, the QFC charges a rate of 10% corporate tax on locally sourced profits.
“Following the launch of the QFC Digital Assets Framework 2024, companies can now apply for a license to perform token service provider activities,” the QFC said.
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