Examining the Regulatory Stance of Countries in the Region Toward the Crypto Industry
The Qatar Financial Center (QFC), based in Doha, Qatar, has unveiled a comprehensive new framework for the creation and regulation of digital assets in the country. This framework includes processes for tokenization, the recognition of token and digital asset ownership rights, custodial agreements, transfers, and exchanges of cryptocurrencies. The QFC has also set clear regulations for the recognition of smart contracts.
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Like the free economic zones in the United Arab Emirates, which operate independently from the country’s laws, the QFC implements and manages its own legal, regulatory, tax, and commercial framework separate from the laws of Qatar. This organization guarantees 100% ownership and 100% profit repatriation in return for a fixed 10% tax.
Accordingly, this framework ensures that the digital asset ecosystem in a QFC will be secure and transparent, adhering to international tokenization standards. The ultimate goal of the organization is to build trust and confidence among consumers, service providers, and stakeholders.
The Role of Qatar’s Central Bank and Alignment with Global Developments
While the United States is still lagging in regulating cryptocurrencies, Europe and Hong Kong have made significant progress, becoming crypto hubs. Qatar, by introducing this new framework, has aligned itself with regional and global developments in the cryptocurrency field. Qatar’s new digital asset framework is in line with developments in the Middle East, particularly in the United Arab Emirates. The UAE, with its clearer regulations, has become one of the main destinations for crypto companies. Dubai and Abu Dhabi, as major financial and crypto hubs in the region, play a key role in boosting the region’s position as a financial and crypto hub.
Sheikh Bandar ibn Mohammed ibn Saud Al Thani, Governor of the Qatar Central Bank, says that the newly launched regulations mark a milestone in achieving the country’s “Third Financial Sector Strategy.” Sheikh Bandar believes that this framework brings significant opportunities to Qatar’s financial sector.
In November 2023, Qatar launched its third financial sector strategy to establish a capital market to help unlock the country’s economic potential, including the “adoption of emerging technologies” to accelerate digital transformation.
The Governor of the Qatar Central Bank believes that this regulatory framework will present a favorable opportunity for the country’s economic growth.
This digital asset framework is the result of collaboration and consultation with the country’s industry stakeholders. According to the QFC, the project was developed with the help of an advisory group comprising 37 domestic and international organizations working in the financial, technology, and legal sectors. The QFC added that since the launch of its digital asset laboratory in October 2023, it has welcomed over 20 startups to develop, test, and commercialize their products and services.
Digital Currency Regulation in Turkey to be Finalized by the End of 2024
According to the latest decisions made by the Turkish government regarding crypto industry regulation, the digital currency law in Turkey is expected to be finalized by the end of 2024. As part of its 2024 Presidential Annual Program, the country plans to implement cryptocurrency taxation and other regulatory measures.
One of Turkey’s goals this year is to focus on cryptocurrency laws and regulations for digital exchanges. This indicates the possibility of implementing a taxation system and other regulatory measures in the cryptocurrency sector, in exchange for ensuring its security and transparency for users in the country. Although there have been many discussions regarding cryptocurrency regulations in Turkey over the past few years, no specific actions have been taken so far. It now seems that the Turkish government plans to organize and implement the digital currency law within the next year.
The United Arab Emirates: The Crypto Hub of the Middle East
The United Arab Emirates entered the world of crypto and blockchain technology in early 2018. The goals that the UAE is pursuing through this technology are quite thought-provoking. The UAE aims to achieve a 50% reduction in government transaction costs with the help of blockchain platforms. In this way, the UAE will save 11 billion dirhams in costs, 398 million printed documents, and 1.6 billion kilometers of driving annually.
“Sheikh Mohammed”, the ruler of Dubai, says the city should be one of the first in the world to fully adopt blockchain technology.
To this end, the UAE has three main goals for embracing this technology:
1. Government Efficiency:
By launching a digital, paperless government, the productivity of government transactions, such as visa applications, bill payments, and license renewals, will increase.
2. Industry:
Blockchain technology will enable citizens and business partners to create new businesses across various sectors, including real estate, fintech, banking, healthcare, smart energy, and urban planning.
3. International Relations Growth:
By using blockchain technology, the UAE is opening a bright gateway for its global partners. Travelers will benefit from this technology in processes such as obtaining visas, driving licenses, car rentals, setting up wallets, and pre-approved payments.
An Opportunity That Is Slipping Away
Middle Eastern countries, following advanced and pioneering nations like Japan, are striving to seize the potential opportunities presented by new technologies, including blockchain. They have clearly realized that every new technology that enters our world is a sea of opportunities that should not be easily overlooked. Is there any country today that does not use technologies like automobiles, mobile phones, the Internet, etc.? Perhaps there was initial opposition to each of these, but ultimately, every government has been forced to adopt them.
Now that it is possible to freely connect the hook of knowledge-based fields with government support to this sea, this level of delay in a country with such a high level of knowledge and culture is simply irresponsible and unacceptable due to a lack of awareness.
The slightest flexibility by regulatory bodies in aligning with the country’s Islamic laws will act as a key conduit, enabling local engineers to connect every single tool and opportunity in this sea to the country’s technological sectors, thereby boosting the economy, industry, international trade, and more.
Source:
https://cointelegraph.com/news/qatar-financial-centre-digital-assets-regulation
