Oman to establish a regulatory framework for Virtual assets
The Oman Capital Market Authority (CMA) has stated that it intends to develop the country’s virtual assets market and establish a regulatory framework for it. The regulator claimed that it can provide an “alternative financing and investment platform for issuers and investors while mitigating the risks associated with this asset class” because of the planned regulatory framework. Despite Oman’s central bank’s warnings against investing in digital assets, approximately 65,000 residents own cryptocurrencies. The Capital Market Authority (CMA), Oman’s regulator of the financial markets, wants to create a new regulatory framework for the Sultanate’s virtual asset industry. If you want to invest in bitcoins then you can visit online trading platforms like ImmediateGP
All about the situation
A press release from February 14 stated that the new regulations would include a framework for identifying and mitigating risks associated with the new asset class, oversight of virtual asset activities, and a licensing procedure for virtual asset service providers The message reads: “The objective of this new regulation is to establish a market regime for virtual assets that include rules to prevent market abuse, including [extensive] mechanisms for enforcement and surveillance.”
The proposed guidelines cover the issuance of crypto assets, tokens, crypto exchange products; and services, and initial coin offerings, among other virtual asset activities. The CMA hired virtual assets policy and regulatory consultants XReg Consulting Limited; and Omani law firm Said Al-Shahry and Partners to help draft the new regulations. The monetary business sectors controllers said the proposed administrative system lines up with Oman’s Vision 2040, a drive to carefully change the country’s economy while drawing in worldwide players to Oman. Oman’s proposed regulatory oversight aims to position the country as a regional leader in the use of virtual assets; but the central bank appears cautious when it comes to cryptocurrencies.
An alternative investment and financing platform
The Oman Capital Market Authority, which oversees the country’s financial markets; has stated that it intends to develop a virtual assets framework to “regulate and develop the market in the Sultanate of Oman”; The plan demonstrates the regulator’s “proactive approach to developing the digital assets; and fintech industry in Oman,” according to the regulator.
Additionally as made sense of in the controller’s Feb. 14 public statement, the making of the alleged virtual resources administrative system will empower the CMA to profit from an “elective supporting; and speculation stage for guarantors; and financial backers while relieving the dangers related with this resource class.”
specialized companies:
In January 2022, Bitcoin.com News reported that the CMA invited bids from “specialized companies”; interested in assisting Oman in establishing a regulatory framework for virtual assets. This is when the agency first announced its plans to establish the regulatory regime. However, the organization revealed in its most recent press release that it is currently working on defining the framework after working on it for more than a year.
The regulator mentioned that the CMA is in the process to define a facilitative and comprehensive regulatory system. It will include any new regulation for covering every virtual assets activity, one licensing system for every VASP category; and one supervisory system for identifying, and mitigating current risks. This regulatory system would have one licensing system for every VASP categories.
In addition, the regulator stated that the proposed regulatory framework aims to establish guidelines that aid in the prevention of market abuse.
In the meantime, the press release revealed that the CMA had selected Xreg Consulting Limited; a virtual assets-focused international policy and regulatory consultancy, as its adviser. The Omani law firm Said Al-Shahry and Partners, Advocates & Legal Consultants (SASLO); has also been appointed by the regulator, according to the press release.
Conclusion
In October 2022, the National Bank of Oman (CBO) encouraged residents to practice alert while executing digital forms of money, given the dangers of misrepresentation. The CBO issued numerous advisories in which it warned that currency banking laws do not apply to digital currencies; or activities involving their use and that no entity has been licensed to trade cryptocurrencies in Oman. However, Omanis continued to hold and invest in digital assets despite the warning. As per the new Souq Expert study, around 65,000 occupants, or 1.9% of the grown-up populace; own cryptographic forms of money in the country. The study found that 25% of locals use digital assets for learning and education; while 62% of locals own crypto for the long term. The remainder stated that they trade daily with cryptocurrencies. If you trade in cryptos then visit Bitcoin smart. It is the official website for trading.
