Key takeaways:
- Oman is getting closer to implementing its virtual asset rules; the body in charge of the financial markets is now looking for feedback from the general public.
- Industry stakeholders may respond to 26 questions in the consultation paper with their thoughts.
The Sultanate of Oman is getting closer to implementing its own virtual asset rules; the body in charge of the financial markets is now looking for feedback from the general public on a proposed framework for regulating digital assets like cryptocurrency.
According to the consultation paper released on July 27 by the Capital Market Authority (CMA) of Oman, a thorough regulatory framework for the virtual asset market is presently being developed. This framework will contain several business criteria and measures to prevent market abuse.
“The CMA is seeking to provide an alternative financing and investment platform for issuers and investors while mitigating the risks associated with the class.”
Industry stakeholders may respond to 26 questions in the consultation paper with their thoughts. It contains recommendations for corporate governance, risk management, virtual asset issuance, and regulatory and licensing requirements for virtual asset service providers (VASPs).
It became clear that the proposed framework includes digital currencies that are classified as virtual assets by the Financial Action Task Force, such as utility tokens, security tokens, stablecoins backed by currency and assets, and others. However, depending on the general public’s response, privacy coin issuance may be prohibited.
By August 17, the public must respond to the consultation paper, and some of their key comments may be displayed on the CMA website.
The CMA may also impose minimum capital requirements on VASPs and mandate that they have a local presence in Oman through a legitimate business and physical office. If finalized, virtual asset providers may also be obliged to undertake audits of secured assets, maintain a minimal amount of assets in hot wallets, and provide evidence of reserves.
The CMA will construct and finalize the regulatory framework after the consultation phase of establishing the virtual asset regime.
Even though the CMA made a public announcement on February 14 about the launch of a regulatory framework, negotiations about regulating the virtual asset market in Oman started far earlier.
India earlier this week supported the suggestions made by the Financial Stability Board for the July-released global crypto framework. The advice given by the FSB, FATF, and IMF is supported by the document. A meeting of international governments is the G20.
