Qatar Financial Center (QFC) has been grabbing headlines for rolling out new rules, involving digital assets transactions. Interestingly, the latest regulation also encompassed guidelines for digital asset creation. Hence, it underscores a landmark achievement in the Asian nation's virtual currency adoption journey.
For context, the QFC regulators represent an entity, which includes the Qatar Financial Centre Regulatory Authority (QFCRA) and Qatar Financial Centre Authority (QFCA). Both parties united to draft the new regulations under the QFC. The legislation was termed, “The QFC Digital Assets Framework 2024,” according to the QFC's local news outlet.
Details of the New Rules for Digital Assets
The statement on the QFC’s online platform disclosed that the new rules will be the basics for legal and regulatory foundation, involving digital assets. Consequently, it would incorporate the tokenization process, custody arrangements, legal recognition of property rights in tokens, exchange, and transfer.
Notably, the tokenization process was an integral part of the new legislation. QFC’s documentation on the new law mentioned that the tokenization process will stem from a high-standard background. Additionally, it will onboard trusted technology support that can guarantee users’ confidence.
QFC's Digital Assets Framework Significance
As stated earlier in this insight, the digital assets framework emerged following collaborative efforts involving the QFCRA and the QFCA. Aside from these two bodies, the legislation passed under satisfactory scrutiny from industry top chiefs, coordinated via an advisory group.
The advisory committee boasts a remarkable thirty-seven organizations, spanning finance, technological advancements, and legal expertise in the local and international landscapes. Therefore, it underscores a properly assessed and meticulously carved-out framework.
Quarter Central Bank Governor Weighs in on the New Rules
Speaking on the development, Qatar Central Bank Governor His Excellency Sheikh Bandar bin Mohammed bin Saoud Al Thani, expressed profound excitement with the new rule. Going further, he stressed the significance of the new framework in the nation’s financial sector.
In addition, he asserted that the fresh legislation tallied with Qatar’s “Third National Development Strategy,” an entity for the last lap of the country’s National Vision 2030.