- The Capital Markets Authority of Oman is a few days away from enacting its proposed Digital Assets Law of 2023.
- The financial watchdog awaits feedback until the 17th of August, 2023.
The financial regulator of Oman expressed its plans to enact laws regulating the use of digital assets last year.
The Capital Markets Authority of Oman progressed in its plan to regulate digital assets through its February press release.
The financial watchdog shared its plans to regulate digital assets in Oman to provide an
“alternative financing and investment platform for issuers and investors while mitigating the risks associated with this asset class.”
The digital assets regulatory framework that the Oman Capital Market Authority would later propose was designed to develop the Fintech industry of Oman.
According to the regulator, the framework to be proposed would correspond with the Sultanate’s vision for 2040. The Sultanate’s Vision 2040 involves a digital transformation of the financial sector and attracting foreign investors into the country.
“The CMA is in the process of defining a comprehensive and facilitative regulatory framework, which will include a new regulation to cover all virtual assets activities, a licensing framework for all VASP categories, and a supervisory framework to identify, assess, and mitigate ongoing risks.” The financial regulator stated.
Five months after the CMA announced its plans to create a regulatory framework for digital assets in Oman, a consultation paper was released.
The consultation paper released in July confirms that the financial regulator of Oman is in the process of drafting the Digital Assets Law of 2023.
The consultation paper consists of 26 questions directed at stakeholders requesting their opinion on several aspects of digital assets and the proposed regulations.
The consultation paper also outlined the significant aspects that the proposed regulations may cover. They include utility tokens, security tokens, fiat-backed and asset-backed stablecoins, and other digital currencies that fall under the Financial Action Task Force’s definition of virtual assets.
The paper suggested that the financial watchdog may require the establishment of physical offices of Virtual asset providers in Oman, with the minimum capital requirement.
The issuance of privacy coins is yet to be ascertained as part of the proposed regulations until public opinion is considered.
The CMA of Oman seeks public opinion in response to the consultation paper. The feedback is due by August 17th.
After the feedback is considered and possibly adopted, the Capital Markets Authority of Oman will draft and complete the proposed regulations.
While the Capital Markets Authority of Oman may have made significant progress with the proposed regulations on digital assets, the process started in 2020.
Oman’s National Committee for Combating Money Laundering and Terrorist Financing agreed to create a task force. The task force comprised the Capital Markets Authority and the Central Bank of Oman.
Both institutions were assigned to study virtual asset activities to decide if they should be banned or allowed.
In December 2022, the task force enlisted legal experts and consultants to aid in the creation of a comprehensive regulatory framework.
