Gairika Mitra
The Qatar Financial Centre Authority (QFCA) and the Qatar Financial Centre Regulatory Authority (QFCRA) have launched the QFC Digital Assets Framework, an innovative regulatory framework aimed at fostering the development and regulation of digital assets in the Qatar Financial Centre (QFC), according to a press release.
The announcement, made on Sunday, said this initiative is part of the Third Financial Sector Strategy introduced by the Qatar Central Bank and represents a crucial aspect of the Third Financial Sector Strategic Plan.
According to the release, H.E. Sheikh Bandar bin Mohammed bin Saoud Al Thani, Governor of Qatar Central Bank, said, “Launching the 2024 Digital Assets Regulations marks a significant milestone in our journey towards realising the Third Financial Sector Strategy.” According to him, this framework will create significant opportunities and support establishing a robust regulatory environment within the financial sector.
The recent framework by the QFC Digital Assets 2024 sets a comprehensive legal and regulatory foundation for the creation and management of digital assets within the Qatar Financial Centre (QFC).
The process will include tokenization, the legal recognition of property rights in tokens and their underlying assets, custody arrangements, and the transfer and exchange of digital assets. Apart from this, the framework also formally recognizes the legality of smart contracts, ensuring that Qatar’s digital asset ecosystem is both secure and transparent and caters to the highest international standards and best practices.
The framework also emphasizes on asset tokenization. It talks about high standards and trusted technology infrastructure designed to instil confidence among consumers, service providers, and industry stakeholders.
The framework was developed after extensive consultation and collaboration with a wide range of industry stakeholders. It consists of an advisory group, composed of thirty-seven domestic and international organizations from the financial, technology, and legal sectors, with each one playing a key role in shaping the framework.
An integral part of this initiative, the QFC Digital Assets Lab, was launched in October last year. It acts as a hub for innovation, bringing together over twenty start-ups and fintech firms to develop, test, and commercialize their digital asset products and services.
Alongside the announcement, Michael Ryan, CEO of QFCRA, shared his perspective on the framework. He expressed enthusiasm and outlined future intentions, stating that the regulatory body is establishing a foundation for a dynamic and innovative financial services sector. This sector aims to capitalize on the potential of new technologies and emerging markets.
The launch of the QFC Digital Assets Framework 2024 will allow companies to apply for a license to perform token service provider activities now.
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Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
