Although the Central Bank of Oman is bringing warnings against investing in cryptocurrencies, the country is moving towards introducing appropriate market regulations. Thus, a battle is beginning on the Arabian Peninsula over which country will become the industry’s greatest friend.
Oman on the road to crypto adoption
Oman’s financial markets regulator, known as the Capital Market Authority (CMA), is exploring the possibility of introducing regulation for the cryptocurrency sector in the country. A proposal to this effect was published on Tuesday, February 14. The proposed changes would include oversight of activities related to the crypto industry. Among other things, the institution would focus on identifying and mitigating risks to counter the undesirable effects associated with the deployment of the new asset class. According to preliminary assumptions, as is the case in the United Arab Emirates, there would be a licensing system in Oman as well. These are designed to vet entities wishing to open their operations in the country and provide services there. The content of the announcement, presented by the CMA, is more specific about this:
“The purpose of this new regulation is to establish a market system for virtual assets that includes rules to prevent market abuse, including thorough supervision and enforcement mechanisms.”
Oman with long-term adoption plan
Several key players have been invited to construct and implement the new regulations. They include XReg Consulting Limited, a consultant on virtual asset policy and regulation, and law firm Said Al-Shahry and Partners.
In turn, CMA representatives point out that the proposed regulatory framework is in line with “Oman’s Vision 2040.” It aims to digitally transform the country’s economy and thus attract global investors.
By doing so, Oman faces a duel with local competitors such as the previously mentioned United Arab Emirates. They too, seeing the potential in the cryptocurrency market, are adapting the law to it. It aims to create an environment conducive to the industry’s development.
Oman’s Central Bank remains cautious
Meanwhile, last October, the Central Bank of Oman (CBO) urged citizens of its country to exercise caution when making investments related to virtual assets. Among other things, it pointed out the high risk of fraud. It was also reported that as of this moment, no cryptocurrency entity has been licensed by the Bank to operate.
Nevertheless, according to Souq Analyst, as many as 65,000, out of Oman’s 4.5 million residents, own cryptocurrencies. 62% of them say it is a long-term investment. In contrast, 25% indicate that they use virtual coins only for educational purposes.
