Qatar: Implemented Digital Asset Regulations 2024

On 1 September 2024, Qatar implemented the Digital Asset Regulations 2024, which are applicable in the Qatar Financial Centre (QFC). These regulations define the legal framework for digital assets within the QFC, including the ownership, transfer, and cancellation of tokens, as well as the provision of token services. The regulations establish the use of distributed ledger technology (DLT) to facilitate the issuance, storage, and transfer of tokens, which are defined as unique electronic data units representing rights in real or personal property. Specific criteria for what constitutes a "permitted token" are outlined, and the regulations grant the Authority power to prohibit certain tokenisations. The regulations also specify that only entities licensed by the Qatar Financial Centre Authority can provide token services, which include validation, token generation, custody services, operating a token exchange, and token transfer services. In addition to outlining the rights and obligations of entities involved in token services, the regulations also address remedies for unlawful transfers of tokens.