Oman takes the last step towards developing its virtual assets regulatory framework

At the end of July 2023, the Oman Capital Market Authority issued a Public Consultation Paper on its Virtual Assets Regulatory Framework.

The Capital Market Authority, Sultanate of Oman (CMA), which regulates and develops Oman's financial markets for the capital market and insurance sectors, had earlier announced its plans to establish the new regulatory framework for Virtual Assets (VA) and Virtual Asset Service Providers (VASP).

As per the Oman Capital Market Authority announcement, the entity is currently in the process of drafting the 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. This is being done after the CMA had made an extensive global analysis and benchmarking with other jurisdictions.

The proposed new regulatory framework is envisaged to cover activities such as crypto assets, tokens, crypto exchanges, and initial coin offerings, among others.

The CMA has invited public and all relevant stakeholders, VASPs, financial institutions, academics, legal firms, consumer groups and other businesses that may be impacted by the VA and VASP frameworks, to provide their views and comments to the public consultation paper. The public consultation paper may be downloaded from the CMA’s website at www.cma.gov.om.

Responses are required within three weeks or before August 17^th 2023. Responses to the public consultation paper can be made electronically via email to: kemal.rizadi@cma.gov.om.

In February 2023, Oman CMA announced its plans to develop a regulatory framework for virtual asets and VASPs. To assist in the development of a comprehensive regulatory framework for virtual assets in Oman, the CMA engaged the services of XReg Consulting Limited, an international policy and regulatory consultancy that specializes in virtual assets, and Said Al-Shahry and Partners, Advocates & Legal Consultants (SASLO), an Omani law firm.