Oman to establish regulatory framework for virtual assets

cointelegraph.com:

The Capital Market Authority (CMA), the regulator of Oman’s financial markets, looks to establish a new regulatory framework for the virtual asset industry in the Sultanate.

According to a Feb. 14 press release, the new rules would include oversight of virtual asset activities, a licensing process for virtual asset service providers (VASPs), and a framework to identify and mitigate risks surrounding the new asset class. The announcement reads:

Several virtual asset activities under the proposed guidelines include issuing crypto assets, tokens, crypto exchange products and services and initial coin offerings, among others.

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

The financial markets regulators said the proposed regulatory framework aligns with Oman’s Vision 2040, an initiative to digitally transform the country’s economy while attracting global players into Oman.

While Oman looks to position itself as a leader in virtual asset adoption in the Middle East through the proposed regulatory oversight, the country’s central bank appears to be warier when it comes to cryptocurrencies.

Related: UAE central bank to issue CBDC as part of its financial transformation program

In October, the Central Bank of Oman (CBO) urged citizens to exercise caution when transacting with cryptocurrencies, given the risks of fraud around the asset.

In repeated advisories, CBO warned it has yet to license any entity to trade in cryptocurrencies in Oman and that currency banking laws do not cover any digital or virtual currencies and activities involving