February 27, 2023

CBO Cautiously Exploring Virtual Assets, Says Chief

CBO Cautiously Exploring Virtual Assets

President of the Central Bank of Oman (CBO) Tahir bin Abdullah Al Amri said the bank is cautiously accepting to explore the virtual assets, according to Cointelegraph

Speaking in a panel discussion in Muscat, Amri noted regulating cryptocurrencies is a risky adventure and investors need to be cautious while dealing with them and the bank has no responsibility toward it. 

He pointed out that CBO does not recognize the cryptocurrencies like several central banks around the world, mentioning that cryptocurrencies are not a payment method, but it is considered a commodity or asset that is traded primarily for capital gains.

All central banks and regulators around the world are looking at cryptocurrencies with an open mind, but they seek to minimize potential risks, therefore they are being viewed as a risky product, he added. 

Amri’s remarks came following the country’s Capital Market Authority (CMA)’s announcement of a plan to outline a regulatory framework for the virtual assets and virtual asset service providers in the Sultanate.

CMA’s plan came during a public stakeholders engagement session. 

According to a press release, the authority seeks to offer an alternative financing and investment platform for issuers and investors, while mitigating the risks associated with this asset class.

The regulations of the new plan will include covering all virtual assets activities, offering a licensing framework for all categories of virtual asset service providers, in addition to outlining a supervisory framework to identify, assess, and mitigate ongoing risks in order to establish a market regime for virtual assets that includes rules to prevent market abuse, including through surveillance and enforcement mechanisms.

The new regulatory framework will cover crypto assets, crypto exchanges, tokens, and initial coin offerings, among others in a move that targets providing a clear and secure framework in light of the growing importance of virtual assets in the region, currently and in line with Oman Vision 2040 of a digitally transformed economy and financial sector to lure foreign investments.

Author profile

Whether you want to learn about NFT, Blockchain, Web3.0, Metaverse, or any other emerging technologies, we have the vital resources that will enlighten and help you make an informed decision.