Oman financial regulator seeks feedback on proposed virtual asset framework


Related articles

The Sultanate of Oman is inching nearer to launching its personal digital asset laws, with its monetary markets regulator searching for public feedback on its proposed regulatory framework governing digital property, similar to cryptocurrencies.

The Capital Market Authority of Oman is at present within the strategy of drafting a complete regime for the digital asset sector, which incorporates numerous enterprise necessities and market abuse prevention, it stated within the consultation paper revealed on July 27.

“The CMA is searching for to supply an alternate financing and funding platform for issuers and traders whereas mitigating the dangers related to the [virtual asset] class.”

The session paper contains 26 questions, with which trade stakeholders might present their opinion. It contains proposals on regulatory and licensing necessities for digital asset service suppliers (VASPs), company governance, threat administration and digital asset issuance.

It revealed that the proposed framework encompasses utility tokens, safety tokens, fiat-backed and asset-backed stablecoins, and different digital currencies that fall below the Monetary Motion Job Drive’s definition of digital property. Nevertheless, the issuance of privacy coins may get banned, pending public suggestions.

Associated: UAE emerges as a pro-Bitcoin mining destination in the Middle East

The CMA may additionally require VASPs to determine an area presence in Oman via a legally established entity and bodily workplace and impose minimal capital necessities on them. If finalized, digital asset corporations may additionally be required to carry solely a low proportion of property in scorching wallets, conduct audits of safeguarded property and present proof of reserves.

The general public should submit their suggestions to the session paper by Aug. 17, with key opinions probably getting posted on the CMA web site.

Following the session section of the event of the digital asset regime, the CMA will draft and finalize the regulatory framework.

Though the CMA publicly announced launching a regulatory framework on Feb. 14, discussions on regulating the digital asset trade in Oman started a lot earlier. In November 2020, the nation’s Nationwide Committee for Combating Cash Laundering and Terrorist Financing determined to launch a job pressure comprising CMA and Central Financial institution of Oman officers to review whether or not to ban or allow digital asset actions. Consultants had been then enlisted in December 2022 to help in organising the brand new regime.