Oman financial regulator seeks feedback on proposed virtual asset framework

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The Sultanate of Oman is inching nearer to launching its personal digital asset rules, with its monetary markets regulator searching for public feedback on its proposed regulatory framework governing digital belongings, resembling cryptocurrencies.

The Capital Market Authority of Oman is at the moment within the technique of drafting a complete regime for the digital asset sector, which incorporates varied enterprise necessities and market abuse prevention, it stated within the consultation paper printed on July 27.

“The CMA is searching for to supply another financing and funding platform for issuers and traders whereas mitigating the dangers related to the [virtual asset] class.”

The session paper consists of 26 questions, with which business stakeholders might present their opinion. It consists of proposals on regulatory and licensing necessities for digital asset service suppliers (VASPs), company governance, danger administration and digital asset issuance.

It revealed that the proposed framework encompasses utility tokens, safety tokens, fiat-backed and asset-backed stablecoins, and different digital currencies that fall beneath the Monetary Motion Process Drive’s definition of digital belongings. Nevertheless, the issuance of privateness cash would possibly get banned, pending public suggestions.

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The CMA may additionally require VASPs to ascertain an area presence in Oman via a legally established entity and bodily workplace and impose minimal capital necessities on them. If finalized, digital asset companies may additionally be required to carry solely a low proportion of belongings in scorching wallets, conduct audits of safeguarded belongings and present proof of reserves.

The general public should submit their suggestions to the session paper by Aug. 17, with key opinions probably getting posted on the CMA web site.

Following the session section of the event of the digital asset regime, the CMA will draft and finalize the regulatory framework.

Though the CMA publicly introduced launching a regulatory framework on Feb. 14, discussions on regulating the digital asset business in Oman started a lot earlier. In November 2020, the nation’s Nationwide Committee for Combating Cash Laundering and Terrorist Financing determined to launch a process power comprising CMA and Central Financial institution of Oman officers to check whether or not to ban or allow digital asset actions. Consultants had been then enlisted in December 2022 to help in establishing the brand new regime.