During a public stakeholders engagement session held at the Capital Market Authority (CMA) recently, the regulatory body responsible for overseeing and advancing the Sultanate’s financial markets for the capital market and insurance sectors revealed its plans to create a new regulatory framework for Virtual Assets (VA) and Virtual Asset Service Providers (VASP).
This forward-thinking move showcases the CMA’s proactive approach to developing the digital assets and fintech industry in Oman, highlighting the Sultanate’s growing recognition of the potential for digital assets to transform the financial landscape.
As the driving force behind this important initiative, the CMA seeks to regulate and develop the virtual assets industry, providing an alternative financing and investment platform for issuers and investors. With the establishment of this new regulatory framework, the CMA aims to mitigate the risks associated with this asset class and ensure that the sector operates transparently and efficiently, contributing to the growth and stability of Oman’s financial market.
A Platform for Alternative Financing and Investment
On February 14, the press release announced that the creation of the virtual assets regulatory framework would enable the CMA to provide an alternative financing and investment platform for issuers and mitigating the risks associated with this asset class for investors.
As we reported in January 2022, CMA initially revealed plans to establish the regulatory regime after inviting bids from specialized companies interested in helping Oman set up a regulatory framework for virtual assets. However, after spending more than a year working on this, the organization revealed in its latest press statement that it is now working on defining the framework.
According to the regulator, the CMA is in the process of defining a comprehensive and facilitative regulatory framework, which will include a new regulation covering all virtual asset activities, a framework for licensing all categories of Virtual Asset Service Providers (VASPs), along with a supervisory framework for identifying, assessing, and mitigating risks in an ongoing manner. The regulator’s objective for the envisaged regulatory regime is to establish rules that help prevent market abuse.
In addition, the press release stated that the CMA had selected Xreg Consulting Limited, an international policy and regulatory consultancy specializing in virtual assets, as its adviser. Furthermore, the regulatory body has designated Said Al-Shahry and Partners, Advocates & Legal Consultants (SASLO), a law firm based in Oman
Final Thoughts
The Capital Market Authority (CMA) in Oman is working on defining a comprehensive regulatory framework for virtual assets, including new regulations to cover all virtual asset activities, a licensing framework, and a supervisory framework to mitigate ongoing risks.
The CMA aims to provide an alternative financing and investment platform for issuers and investors while preventing market abuse. The CMA has appointed Xreg Consulting Limited and Said Al-Shahry and Partners as advisers to help establish the regulatory framework. This move by the CMA is a positive step towards legitimizing virtual assets in Oman and mitigating associated risks
Ken Emmanuel is a Blockchain Content writer, a Web3 Enthusiast and a Social Media Management Strategist, he likes writing educative contents to help people gain more knowledge and get inspired. The growth of any organization he work with is always his priority. He is a Geographer by profession and loves reading.
