Oman is taking steps to introduce crypto regulations. The country’s financial markets regulator, the Capital Market Authority (CMA), is inviting public comments on a proposed framework for digital assets, including cryptocurrencies.
They aim to create a comprehensive regime for the crypto sector, addressing business requirements and measures to prevent market abuse and manipulation. A consultation paper with 26 questions has been released for industry stakeholders to provide their feedback.
Oman’s Proposed Framework for Digital Assets
According to the CMA, their goal is to offer a different way for issuers and investors to finance and invest, while also managing the risks related to virtual assets.
The proposed framework in Oman includes utility tokens, security tokens, fiat-backed and asset-backed stablecoins, and other digital currencies as defined by the Financial Action Task Force. However, the use of privacy coins might not be allowed, and the decision is awaiting public feedback.
Oman’s Approach to Regulating Virtual Assets
The Capital Market Authority (CMA) in Oman is considering several measures to regulate virtual assets. They might require Virtual Asset Service Providers (VASPs) to create awareness in the country and impose minimum capital requirements. Virtual asset firms might need to hold only a small percentage of assets in hot wallets, conduct audits of safeguarded assets, and provide regular proof of reserves.
The public has until August 17 to submit feedback on the proposed framework, which can be done through the CMA website. After the consultation phase, the CMA will finalize the regulatory framework for virtual assets.
Oman’s discussions on regulating the virtual asset industry began in November 2020 when a task force, consisting of officials from the CMA and Central Bank of Oman, was formed to study whether to ban or permit virtual asset activities.
Important:Â Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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