This move, led by the Qatar Financial Centre (QFC), aligns with the Qatar Central Bank’s strategic objectives.
It is expected to bring new opportunities to the country’s financial sector. Let’s discover how Qatar is doing this.
QFC’s New Framework Set to Transform Qatar’s Financial Landscape
The Qatar Financial Centre (QFC), a business hub located in Doha, unveiled a detailed regime. It was designed to regulate and facilitate the creation of digital assets. This framework was developed in collaboration with the Qatar Financial Centre Authority (QFCA). Also, by the Qatar Financial Centre Regulatory Authority (QFCRA).
The new regulations provide a robust foundation for digital assets within the QFC, outlining clear processes for tokenization. It will recognize property rights in tokens and their underlying assets, and establish guidelines for custody, transfer, and exchange. Notably, the framework also legally recognizes smart contracts, signaling Qatar’s forward-thinking approach to digital innovation.
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The introduction of this digital assets framework is part of a broader strategy by Qatar to position itself as a leader in the financial sector. In November 2023, Qatar launched its Third Financial Sector Strategy, which aims to develop a capital market and embrace emerging technologies to accelerate digital transformation. The QFC’s new framework is a key component of this strategy. It provides the necessary regulatory environment for digital assets to thrive.
Source: X
The QFC operates similarly to the free economic zones in the United Arab Emirates, with its own legal, regulatory, tax, and business framework, separate from the rest of Qatar. This independence allows the QFC to offer favorable conditions for businesses, including up to 100% foreign ownership and profit repatriation, along with a competitive 10% corporate tax on locally sourced profits.
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