Qatar Brings in Crypto Rules Framework in a Sign of Web 3 Development in the Middle East

Qatar has gone from banning crypto in 2018 to introducing a framework for crypto regulation this month.

The framework consists of the popularity of sensible contracts, licensing of crypto firms, possession rights in tokens and custodial preparations.

Qatar launched a regime to control digital property, paving the best way for firms to acquire licenses as token service suppliers and assist develop the nation’s digital monetary economic system.

The Qatar Monetary Middle (QFC), which offers authorized providers to native and worldwide firms, has launched the Digital Asset Laws 2024 to determine the “authorized and regulatory foundation for digital property, together with the method of tokenization and authorized recognition of possession rights in tokens and their underlying property, custody preparations, switch and trade,” it stated on Sunday.

The framework, which additionally legally acknowledges sensible contracts, marks a shift from a earlier coverage marked by a 2018 ban on crypto. Qatar started a public session course of final 12 months and laws had been anticipated by the top of the 12 months.

“We anticipate this regulatory readability will entice each home and worldwide gamers, growing the competitiveness of Qatar’s monetary providers sector,” stated Yousuf Mohamed Al-Jaida, CEO of QFC.

The regulation is the results of stakeholder discussions coordinated by an advisory group of 37 home and worldwide organizations. Greater than two dozen startups and fintech firms participated in testing that started in October 2023 to assist develop the framework.

“In comparison with different nations within the Center East, Qatar’s method is remarkably superior and affords a extra structured and clearer regulatory surroundings,” stated Navandeep Matta, senior affiliate at Kochhar & Co. Authorized. “This positions Qatar aligned with the UAE Digital Belongings Framework, creating a strong regulatory regime that aligns with worldwide greatest practices.”