Key facts:
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The framework legalizes and regulates the creation, custody and transfer of digital assets in Qatar.
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The country seeks to promote the regulation of cryptocurrencies with international standards.
Qatar has taken a significant step by launching a regulatory framework that not only legalizes but also regulates the use of cryptocurrencies, marking a notable shift from the ban imposed in 2020.
This new framework, announced by the Qatari authorities, establishes the legal and regulatory basis for digital assets in the country, including asset tokenization, custody and transfer of these.
The legal recognition of smart contracts is one of the pillars of the new regulation, which is aligned with international standards for the regulation of cryptocurrencies. Since October 2023, Qatar has been actively exploring the use of digital assets in its laboratory, which has culminated in this comprehensive framework.
Michael Ryan, CEO of the Qatar Financial Centre Regulatory Authority, highlighted the importance of this framework, which he described as “robust and comprehensive”.
“We are laying the foundation for the development of a thriving and innovative financial services sector that can take advantage of the opportunities offered by new technologies and emerging markets,” Ryan said.
For his part, Bandar bin Mohammed bin Saoud Al Thani, who is the Governor of the Central Bank of Qatar, said that the legal framework “establishes an important milestone on our path towards the realization of the Third Financial Sector Strategy.”
He added that this framework will create significant opportunities and support the Establishing a sound regulatory environment within the financial sectoraligned with Qatar’s digital transformation goals and the Qatar National Vision 2030.
This framework requires companies to apply for licenses to operate with digital assets in Qatar, thus ensuring appropriate oversight and regulation. This move not only reflects a shift in policy towards cryptocurrencies in Qatar, but also positions the country as an innovative financial hub in the Middle East region.
In 2020, Bitcoin-mundial-futbol-2022-prohibido-catar/”>Qatar banned cryptocurrencies. This move reflected a global trend where many governments were in the process of evaluating how to fit cryptocurrencies within their existing legal frameworks, or if they should temporarily ban them until an appropriate regulatory solution is found.
Now, Qatar’s decision to open up to cryptocurrencies is relevant to the ecosystem for several reasons. For example, because it demonstrates an adaptation to global trends where cryptocurrencies are gaining ground as a legitimate way to store value and carry out transactions, offering an alternative to the traditional financial system.
Moreover, Qatar’s clear and advanced regulation can serve as a model for other countries that are still undecided on how to approach cryptocurrencies. Thus, Qatar not only secures a place in the future of the digital economy, but also strengthens its position in global financial geopoliticsattracting businesses and opportunities looking for a safe and regulated environment to operate with digital assets.
This article was created using artificial intelligence and edited by a human on the editorial staff.
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