The Sultanate of Oman is moving towards launching systems to regulate its virtual assets, as the Capital Market Authority seeks to gather public opinions on the proposed regulatory framework for digital assets, such as cryptocurrencies.
Comprehensive Regulatory Framework
The Capital Market Authority in Oman is currently working on establishing a comprehensive system for the virtual assets sector, which includes various requirements for businesses and aims to prevent market abuse. This was stated in the consultation paper published on July 27.
Potential Ban on Privacy Coins
The consultation paper includes 26 questions on which stakeholders in the industry can provide their opinions. It covers proposals regarding regulatory and licensing requirements for Virtual Asset Service Providers (VASPs), corporate governance, risk management, and the issuance of virtual assets.
The proposed framework includes utility tokens, security tokens, stablecoins backed by legal currencies and assets, and other digital currencies falling under the definition of virtual assets issued by the Financial Action Task Force. However, the issuance of privacy coins may be banned, subject to public feedback.
The public is expected to submit their opinions on the consultation paper by August 17, and the key findings may be published on the Capital Market Authority’s website. After concluding the consultation stage to develop the virtual assets system, the Authority will proceed with establishing and defining the regulatory framework.