Oman Financial Regulator Seeks Feedback on Proposed Virtual Asset Framework

• The Capital Market Authority (CMA) of Oman is currently drafting a comprehensive framework for virtual assets.
• It covers FATF-defined assets, but the issuance of privacy coins might be banned.
• The public has until Aug. 17 to submit their feedback on the proposed framework.

Oman Financial Regulator Seeks Public Feedback

The Sultanate of Oman is making progress towards launching its own regulations for virtual assets such as cryptocurrencies. The Capital Market Authority (CMA), which is tasked with regulating financial markets in the country, has published a consultation paper seeking public comments on its proposed framework governing digital assets.

Proposed Regulatory Framework

The proposed regulatory framework includes various business requirements and market abuse prevention measures, covering 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. However, it could ban the issuance of privacy coins depending on public feedback. It may also require virtual asset service providers (VASPs) to establish a local presence in Oman with an established entity and physical office and impose minimum capital requirements on them. VASPs would also need to hold only a low percentage of assets in hot wallets, conduct audits of safeguarded assets and show proof of reserves.

Feedback Deadline

The CMA has invited industry stakeholders to provide their opinion through 26 questions included in the consultation paper by Aug 17th 2021. Key opinions may be posted on the CMA website once feedback submission closes.

Discussions Started Earlier

Discussions about regulating virtual asset industry in Oman began much earlier than February 2021 when CMA publicly announced launching a regulatory framework . The regulator had already started talks about regulating this sector as early as November 2020 when it issued guidelines for initial coin offerings (ICOs).


Once feedback submission closes on August 17th 2021, the CMA will draft and finalize its regulatory framework governing virtual assets such as cryptocurrency in accordance with public opinion provided through consultation process . This move will provide an alternative financing and investment platform for issuers and investors while mitigating associated risks with this class of digital assets .