Oman is poised to introduce its own regulations for virtual assets, and its financial markets regulator is inviting public input on its proposed framework for overseeing digital assets like cryptocurrencies. The Oman Capital Markets Authority (CMA) recently released a consultation paper on July 27, outlining its ongoing efforts to establish a comprehensive regime for virtual assets. This proposed framework encompasses various business requirements and measures to prevent market abuse. The consultation document includes 26 questions designed for industry stakeholders to offer the ir comments and insights.
The regulatory framework under development by the CMA covers a wide spectrum of virtual assets, including utility tokens, security tokens, fiat-backed and asset-backed stablecoins, and other forms of digital currencies that fall under the definition of virtual assets as outlined by the Financial Action Task Force (FATF). However, the issuance of privacy coins may potentially be restricted, pending input from the public. The CMA is also exploring the possibility of requiring virtual asset service providers (VASPs) to establish a local presence in Oman through Legally recognized entities and physical offices, along with enforcing minimum capital requirements.
Feedback on the consultation paper is open to the public until August 17, with significant comments expected to be made available on the CMA website. Following this consultation phase, the CMA plans to finalize the regulatory framework for virtual assets. The CMA initially announced the launch of its regulatory framework on February 14, with discussions about virtual asset industry regulation in Oman commencing well before that. In November 2020, Oman's National Committee to Combat Money Laundering and Terrorist Financing established a working group composed of officials from the CMA and the Central Bank of Oman to explore whether to permit or ban virtual asset activities. Consultants were subsequently brought in to assist in establishing the new regulatory regime in December 2022.
