Oman's Capital Market Authority Plans New Proposed Regulatory Framework for Virtual Assets and Virtual Asset Service Providers

The Capital Markets Authority (CMA), which regulates and develops the capital markets and financial markets in the insurance sector in the Sultanate of Oman, has announced plans to establish a new proposed regulatory framework for virtual assets (VAs) and virtual asset service providers (VASPs). The CMA is defining a comprehensive regulatory framework that will cover new regulations for all virtual asset activities, a licensing framework for all VASP categories, and a regulatory framework for identifying, assessing and mitigating ongoing risks. The purpose of this new regulation is to create a market regime for virtual assets that includes rules to prevent market abuse, including through supervisory and enforcement mechanisms. Meanwhile, the proposed new regulatory framework is expected to cover activities such as crypto-assets, tokens, cryptocurrency exchanges and initial coin offerings.