- QFC has released a new regime backed by QFCA and QFCRA framework for digital assets
- The new rules include asset tokenization processes, token exchange and storage, and smart contracts
- This is part of a broader digitalization strategy called the Third Financial Sector Strategy
Qatar Financial Center (QFC), has issued a framework for the creation and regulation of digital assets, paving the way for crypto.
This creates very favorable rules for the circulation of digital assets, allowing 100% foreign ownership, 100% repatriation of profits, and “charges a competitive rate of 10% corporate tax on locally sourced profits.”
What’s Special About QFC’s New Regime
QFC is Qatar’s business center, which operates similarly to free zones in the United Arab Emirates, with its own legal and tax rules.
Of course, QFC is under the jurisdiction of regulators Qatar Financial Centers Authority (QFCA) and Qatar Financial Centers Regulatory Authority (QFCRA), which have issued the regulatory framework that made these developments possible.
So it enabled QFC to provide new rules for asset tokenization processes, tokens, and smart contracts ownership, storage, transfer, and exchange mechanisms.
Qatar’s Digital Transformation
Qatar Central Bank Governor His Excellency Sheikh Bandar bin Mohammed bin Saoud Al Thani said that the new rules from QFC are one of the key steps to implement the country’s so-called “Third Financial Sector Strategy”, which in his opinion should favorably affect the investment climate in Qatar, expand its economic potential and the introduction of advanced financial technologies.
In particular, this framework and the resulting set of rules for handling digital currencies is a great achievement, and the result of the hard work of 37 domestic and international organizations working in the financial, technological, and legal sectors.
All of this should create a secure, transparent, and comprehensive framework for sustainable economic development and accelerated digital transformation.
Conclusion
Qatar can be congratulated for taking such a big step towards digital assets in general and crypto in particular, andespecially the seriousness with which it has taken this step.
It is clear that Qatar is inheriting the strategies of the United Arab Emirates, pioneers in many economic development strategies beyond oil trading.
If Qatar successfully continues to inherit this strategy, and maybe even makes it even more progressive by utilizing the previous experience, it should make a great contribution to the future sustainable economic situation.
