The Capital Market Authority (CMA), the financial regulator of Oman, is intent on devising a new regulatory framework for virtual asset operations in the Sultanate.
On February 14th, a press release was issued regarding introducing new rules to oversee virtual asset activities. This regulatory framework is designed to create a safe and secure investing atmosphere with measures that prevent market abuse — such as comprehensive surveillance and enforcement mechanisms. The announcement highlights: “This new regulation aims to establish a market regime for cryptocurrencies that include rules to prevent market abuse, including surveillance and enforcement mechanisms.” With these laws in effect, investors can now rest assured knowing their investments are protected against any potentially fraudulent or reckless behavior within the digital asset space.
The New Regulation Supports Oman’s Plan to Become a Crypto Center by 2040
To transform the economy in line with Oman’s Vision 2040 and attract global players, the Capital Market Authority (CMA) has drafted regulations covering virtual asset activities, including crypto assets issuance, token transaction services, Initial Coin Offerings, and more. XReg Consulting Limited – a policy expert on all matters related to virtual assets – and Said Al-Shahry & Partners, an eminent law firm from Oman, has been appointed by CMA to advise them during this process.
As Oman seeks to develop its status as a pioneer in digital asset adoption within the Middle East with the proposed regulatory framework, the Central Bank of Oman (CBO) has remained prudent towards cryptocurrencies. Last October, they cautioned citizens to take care when engaging in cryptocurrency transactions due to potential chances of deception.
Oman Central Bank Warned Citizens Against Cryptocurrencies
Despite multiple warnings from the CBO that they have not yet certified any organizations to facilitate cryptocurrency trading in Oman and that currency banking laws do not include digital currencies, even this caution has been disregarded by many Omanis. A recent Souq Analyst survey revealed that roughly 65,000 adults – a remarkable 1.9% of the population – still own some form of crypto asset in the nation.
Research showed that 62% of the local population own cryptocurrencies for lengthy periods, while 25% said they use digital assets as a learning opportunity. The remaining individuals reported using cryptocurrencies to trade on a daily basis.
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