Sultanate of Oman Wishes to Develop Crypto Regulations through Private Sector

The Government of Oman is inviting interest from the private sector in developing a two-phase regulatory framework for digital currencies in the country.

Concerns regarding cryptocurrencies have forced the Government in Oman to come up with a plan to meet the challenges ahead. It has therefore been proposed by the Omani Government that they a complete regulatory structure for digital currencies. In this connection, a public tender has been floated by the Government of Oman through a state-owned institution called, Capital Markets Authority (CMA).

CMA is Oman’s financial regulatory authority whose Chairman is the country’s Finance Minister.

As per the information provided in the tender by CMA, the regulatory structure will comprise two phases. In phase one, it will be identified which laws to be formulated and what laws need amendments for setting up regulations for virtual currencies. Within this first phase, it will have to be identified as to what security measures are necessary for ensuring investors’ protection.

In phase two, CMA will be educated and trained on how to deal with virtual assets which would further include providing of technical assistance.

Aimed with the objective, CMA specifically asked for assistance from private companies with subsequent knowledge and expertise. Any interested company would then be required to complete the documents and provide the same to CMA along with a requisite fee for tender.

Earlier in the past year, CMA had warned Omanis to be careful about engaging with virtual assets and currencies. The bank suggested that virtual assets have high unprecedented risks which cannot be ascertained and identified with the help of the existing financial setup. Users were then advised to engage with virtual currencies at their sole cost and risks.

Thereafter, a task force was constituted by CMA whose job was to learn and understand the pros and cons of digital currencies. CMA has further clarified that interests will remain open till 23rd March 2022 after that no further tenders will be accepted.

Likewise in many parts of the world, the consciousness of crypto regulation has reached to Oman as well. However, the country of Oman draws inspiration from the UAE because they both share the closest borders. Even Oman nationals do not require a visa if they were to visit Dubai. Similarly, any national of UAE can visit Oman without the need for a visa. Instead, entry fees are paid by Omanis visiting UAE or nationals of UAE visiting Oman.

If Oman would have been following in the footsteps of Saudi Arabia then crypto is permanently banned therein. Meanwhile, UAE is rather a more crypto-friendly region and, as a matter of fact, a dedicated city for crypto is under-construction in Dubai. Perhaps it is because of the close cooperation between the UAE and Oman that Oman is pursuing the development of crypto regulations.

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