Qatar Unveils New Regulatory Framework for Digital Assets, Marking Shift from 2018 Ban

Qatar has made a significant shift in its approach to cryptocurrency. After banning it back in 2018, the country has now introduced a new regulatory framework for digital assets.

This framework recognizes smart contracts and allows crypto companies to obtain licenses. It also covers important topics like property rights for tokens and custody arrangements.

The Qatar Financial Centre (QFC) is leading this initiative. They’ve rolled out the Digital Asset Regulations 2024 to create a solid legal foundation for digital assets. This includes processes for tokenization, legal recognition of property rights, and guidelines for custody and exchange.

It’s a big change from the previous ban on crypto. Last year, Qatar began a public consultation process, and they aimed to have regulations in place by the end of this year.

Yousuf Mohamed Al-Jaida, the CEO of QFC, expressed optimism. He said, “We anticipate that this regulatory clarity will attract both domestic and international players, boosting Qatar’s financial services sector competitiveness.”

This regulation is the result of careful discussions with various stakeholders. An advisory group of 37 organizations, both local and international, helped shape these rules. Over 20 startups and fintech firms participated in tests that started in October 2023 to refine the framework.

Navandeep Matta, a senior associate at Kochhar & Co. Legal, noted Qatar's progressive stance. He said, “Compared to other Middle Eastern countries, Qatar’s approach is notably advanced. It offers a more structured and clear regulatory environment.”

This positions Qatar alongside the UAE’s Digital Assets Framework, establishing a robust regulatory regime that aligns with international best practices.