Oman Regulator Seeks Feedback on Proposed Virtual Asset Framework

• The Capital Market Authority of Oman is developing a regulatory framework for virtual assets in the country.
• The proposed framework covers FATF-defined assets, but issuance of privacy coins might be banned.
• Industry stakeholders can provide their opinion on the 26 questions posed in the consultation paper by Aug 17.

Oman Financial Regulator Seeks Feedback On Proposed Virtual Asset Framework

The Capital Market Authority of Oman (CMA) is seeking public comments on its proposed regulatory framework governing digital assets such as cryptocurrencies. The consultation paper includes 26 questions, with which industry stakeholders could provide their opinion and feedback to be submitted before August 17.

Proposed Regulatory Framework

The proposed framework encompasses 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, the issuance of privacy coins might get banned pending public feedback. VASPs will be required to establish a local presence in Oman through a legally established entity and physical office and impose minimum capital requirements on them. Virtual asset firms might also be required to hold only a low percentage of assets in hot wallets, conduct audits of safeguarded assets and show proof of reserves.

Discussions On Regulating The Virtual Asset Industry In Oman

Discussions on regulating the virtual asset industry in Oman began much earlier than when it was first publicly announced on February 14th this year .In November 2020 ,the CMA had released an initial draft for discussion purposes but did not proceed further due to lack of sufficient input from market players at that time .

Public Comments And Submissions Process

The public must submit their feedback to the consultation paper by Aug 17, with key opinions potentially getting posted on the CMA website . Following the consultation phase ,the CMA will draft and finalize the regulatory framework .


The development of a comprehensive regime for regulating virtual asset activities in Oman is underway with public comments sought from industry players before August 17th . Once finalized ,the new regulations are expected to bring more legitimacy and growth opportunities for businesses operating within this sector .