Oman Establishes New Regulatory Framework For Crypto Assets

The Sultanate of Oman is set to establish a new regulatory framework for the crypto asset industry, according to a press release issued by the Capital Market Authority (CMA), the regulator of Oman’s financial markets.

Oversight of crypto asset activities and a licensing process for crypto asset service providers are part of the move. The move also includes a framework to identify and mitigate risks associated with the new asset class.

The proposed regulatory framework aims to prevent market abuse, including thorough surveillance and enforcement mechanisms.

Proposed Guidelines for Virtual Asset Activities

However, the new regulatory framework’s proposed guidelines include the issuance of crypto assets, tokens, crypto exchange products and services, and initial coin offerings.

The CMA has enlisted the services of XReg Consulting Limited, a virtual assets policy and regulatory consultant, and Said Al-Shahry and Partners, Advocates & Legal Consultants (SASLO), an Omani law firm, to advise and assist in the drafting of the new regulation.

The financial markets regulator notes that the proposed regulatory framework aligns with Oman’s Vision 2040 initiative, which aims to digitally transform the country’s economy and attract global players into Oman. This regulatory oversight is expected to position Oman as a Middle Eastern leader in virtual asset adoption.

Central Bank Of Oman’s Cautious Approach To Cryptocurrencies

Despite Oman’s regulatory framework promoting crypto asset adoption, the country’s central bank appears to be more apprehensive regarding cryptocurrencies.

The Central Bank of Oman (CBO) warned citizens of the risks of fraud associated with cryptocurrencies last October. As a result, the CBO advised people to be cautious when dealing with this asset and take appropriate measures.

احذر من استخدام العملات المشفرة! وطرق الاحتيال الهرمي التي توهم بالأرباح الضخمة | ⚠️#دير_بالك pic.twitter.com/nWJCkX4RTd

— البنك المركزي العماني (@CentralBank_OM) October 6, 2022

The CBO has cautioned that there are no licensed entities for trading cryptocurrencies in Oman. Additionally, banking laws do not encompass any digital or virtual currencies or their associated activities

Despite this warning, Omanis continue to hold and invest in cryptocurrencies. According to a recent Souq Analyst survey, approximately 65,000 residents, or 1.9% of the adult population, in the country own cryptocurrencies.

According to the study, 62% of locals own cryptocurrency for the long term, while 25% use digital assets for learning and education. The remainder stated that they trade cryptocurrencies on a daily basis.

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In conclusion, Oman has developed a new regulatory framework for virtual assets. The framework aims to establish a market regime with rules to prevent market abuse and identify and mitigate risks associated with virtual assets.

Oman’s new regulatory framework for crypto assets aims to establish a market regime that includes rules to prevent market abuse. The framework also seeks to identify and mitigate risks associated with virtual assets.