QFC Digital Assets Framework Launched to Promote Legal Crypto in Qatar

Key Points:

• Qatar’s central bank introduced the QFC Digital Assets Framework for digital assets within the Qatar Financial Centre.
• The framework sets high standards for digital asset activities.

Qatar Central Bank, in cooperation with the Qatar Financial Centre Authority and the Qatar Financial Centre Regulatory Authority, introduced the QFC Digital Assets Framework.

Read more: Qatar Fails To Crack Down On Crypto Despite Regulations: Report 

Qatar Central Bank Introduces QFC Digital Assets Framework

The move is a very important step that will give the necessary legal and regulatory environment for digital assets within the QFC.

QFC Digital Assets Framework was designed in close collaboration with industry participants, including digital asset exchanges, custodians, and market participants, and will go a long way in helping attain Qatar’s goals of digital transformation.

This also broadly covers a wide array of digital asset activities inclusive of issuance, trading, custody, and all other related services. This also addresses essential regulatory concerns, including anti-money laundering, counter-financing of terrorism, and market conduct.

One of the striking features of this framework is investor protection and ensuring market integrity through the imposition of strict risk management measures. It is also good to note that the framework requires processes for asset tokenization to be of high standards while offering legal recognition of smart contracts and property rights in tokens simultaneously.

In line with such an approach, the framework aligns with international best practices with a view to offering a secure and transparent ecosystem in digital assets.

Qatar Pushes Forward CBDC Plans in Line with Support for Fintech Startups

The QFC Digital Assets Framework was the result of great deliberation with over 37 domestic and international organizations in the financial, technology, and legal sectors. Since its launch in October this year, more than 20+ Startups and Fintech companies have been engaged in the QFC Digital Assets Lab in the development, testing, and commercialization of their digital asset solutions.

Along with the framework for the digital assets, Qatar is continuing to develop its proposed CBDC. A full-scale launch of a CBDC is expected by the end of 2024; the current stage represents the testing of this product.