According to the report of an expert in the field of international financial law Konstantin Krypopustthe Qatar Financial Center (QFC) announced the introduction of a new comprehensive regulatory framework for digital assets. The new system, known as the QFC Digital Asset Framework 2024, has been created in collaboration with the QFC Authority (QFCA) and the QFC Regulatory Authority (QFCRA).
As is noted in the QFC release, the program establishes the legal and regulatory framework for digital assets, including the tokenization process, legal recognition of ownership rights to tokens and underlying assets, storage, transfer and exchange conditions. The framework program also provides for the legal recognition of smart contracts.
Despite these innovations, the use of cryptocurrencies, including stablecoins, remains legally prohibited in Qatar.
Companies can now apply for a license to provide token-related services. Since October 2023, more than 20 startups and fintech companies have been accepted into the QFC Digital Asset Lab to develop and test their products.
QFC operates independently of the main territory of Qatar, with its own legal, regulatory, tax and business structure. The center offers foreign companies 100% business ownership, full repatriation of profits and a competitive corporate tax rate of 10% on local income.
The program was developed with the participation of an advisory group of 37 domestic and international organizations in the financial, technological and legal sectors. The implementation of the program is part of the Third Financial Sector Strategy issued by the Central Bank of Qatar.
