Topic: Sultanate of Oman towards regulating the crypto-assets sector. (Read 237 times)

Since you are following the topic of the draft law prepared by the Sultanate of Oman, are there any updates?

Did they actually hold a popular referendum on the project? Has the people voted on the project or not yet?

I would love to hear updates if there is anything new and know the results, because it is a truly unique experience (the people’s referendum on a draft law). I also want to know if the referendum is held yes by the public, will the government actually approve the new law?

It is unlikely that Bitcoin will be adopted as an official currency, even in the most extreme cases. This is a bold step that is not easy for any country to take, although many companies in several sectors accept payments in Bitcoin and governments are forced to deal with it. The Emirates, for example, or Bahrain, or even the projects under construction in both the Sultanate of Oman and Morocco, are all projects to adopt crypto transactions and accept crypto as recognized investment products and not as an official currency. There is a big difference between the two matters.

Currently, the experiments with full adoption have not been as successful as expected. I mean the experience in El Salvador and Central Africa. This is because the adoption was not to support the financial policy of either country, but rather in a desperate attempt to save what can be saved in a worn-out economy. El Salvador is suffering from massive inflation in its local currency and wants as much as possible to limit its need to use foreign currencies (the dollar) due to its limitations, and Central Africa has not found alternative solutions to get rid of the African franc (CFA).

The state is the one that called for these investments, which are considered the first of their kind in the field of cryptocurrencies, since no company has a license to operate in this field, and the draft law is still under national consultation. Only the state can make these exceptions.

About the Blockchain technology, there is no field in which blockchain technology is used more than cryptocurrencies and crypto networks. It is known that the main reason for this delay is the lack of development of technologies that allow storing data in larger sizes on the blockchain while ensuring easy communication between the various nodes, and the world is likely to succeed in doing this during the upcoming developmental stages. But in general, it is not permissible to blame the Sultanate of Oman in the launch stage. It's an experimental stage.

It is still in the process of discussion and draft law, and everything may change during the upcoming sessions to reach the final formulation of the law, but the matter is greater than bitcoin or encrypted currencies. Their definition of digital assets includes:



I did not find any official version on this link.

Mining Bitcoin is a good idea and this is a good move to utilize the mining ability that Bitcoin provide for everyone to partake rather thqn the government fighting against cryptocurrency which suppose not to be so. Bitcoin is a great asset that the government can always benefit from without making her citizens lives miserable like some government in some regions do. This will facilitate the expansion of Bitcoin and make it worth investing on since the government intend to create a safe environment.

It is interesting that they use the word data center and cryptocurrency mining center even though the explanations are mostly centered around mining operations. Do they have a plan to extend the activities, or does this mean they offer other services outside of mining activity? Not sure if a legal issue is the reason since even the ministry is present there.

It seems that events have begun to accelerate in the field of blockchain technologies, after the recent launch of the consultation, and the Omani government has begun to work according to clear strategies to support services related to the field of crypto.

In an article published by the local omanobserver on August 13, it was announced that a mining center was opened in Salalah Governorate, with a value of 135 million Omani Riyals, equivalent to 370 million US dollars. The management of the center will be under the supervision of the local company, Exahertz, in cooperation with the Emirati company, Moonwalk Systems, which has already started operating the center with a capacity of 11 megawatts through 2,000 mining machines that were supplied by Bitmain, the leading company in the field of mining machines.

This center is the second data center specialized in modern technologies after the first center was launched in the city of Al-Jabal Al-Akhdar during last December 2022, which is also expected to enter the mining market. The two centers intend to reach 15,000 machines by October 2023 according to the same article.

The Sultanate of Oman enjoys a good position in the Arab region, as it always strives to have an open policy and look forward to all modern technological developments. It is clear that these recent decisions are affected by the degree of adoption reached by some Emirates in the UAE and how this encouraged many investments in the sector of encrypted currencies and blockchain services. Do not forget that an Arab country grants a license to a trading platform that is in Bahrain, as the rain platform has been active for years before the UAE even began its adoption policy.

I expect new developments during the coming period in the Arab Gulf countries and some Arab countries in North Africa.

I've read the news about the Regulators or laws that the Sultanate of Oman wants to enforce, I think positively about the crypto industry in the future, it looks like we will see that in the future the crypto industry will migrate to the Middle East / UAE region.

I remember what was said by: @Cameron Winklevoss.

Not only Oman, Dubai, especially the UAE, will virtually have a positive impact on crypto users and also the regulation of crypto assets that will occur in the future, this is a good sign for the development of Bitcoin, hope that public input and feedback on crypto regulations in the future will have an overall positive impact on the current actions of the Sultanate of Oman.

According to what I know about the Sultanate of Oman, they always try to follow a somewhat flexible and balanced policy. For example, when all the Gulf states cut off their relations with Iran, Oman did not. It maintained its relations with Iran and always played the role of mediator.

If they follow the same balanced policy in the Bitcoin issue, they might come up with a somewhat balanced version of a legislative act to regulate Bitcoin and cryptocurrencies.

Let's not be in a hurry and wait and see what their decision will be.

I think it is too early to be optimistic that bitcoin or any of the cryptocurrencies will be officially recognized as an official currency or even in the blockchain as a method of payment and money transfer. We must not forget the contrast between the decentralized nature of the blockchain, according to which Bitcoin was developed, and the central nature of countries in their dealings with everything.
At the same time, it is good to establish a legal legislative framework to regulate the digital assets sector (including encrypted) to provide investment and trading services at least.

I support the idea that the Sultanate of Oman does not want to remain behind in the circle of development in the financial sector and public banking. It is also affected by its neighbors, since the countries of the region have economic agreements that make their markets a free economic space open to goods and people, and therefore there must be compatibility in the financial systems.

Many other countries follow the same practice but in reality, it is just a eyewash. Public opinion holds on value or impact on the final decision. Through such things, government tries to understand the pulse of their people. But if they want to ban it, they will anyway do it. I believe the Central Bank of Oman will also pass unfavorable judgement toward Bitcoin adoption in the country. So there's no reason to cheer.

If Oman finally decides to allow cryptos in their market, that will be a miracle.

Yes, it is joyful to see the government seeking public opinion on this important issue. The Omani government may have taken such a step to avoid clashing with hardline jurists because a large number of them prohibit dealing with bitcoin and cryptocurrencies.

Although Bitcoin is still a matter of disagreement among the jurists, most of them prohibit Bitcoin, and the Omani government may seek, through this consultation, to find a compromise that is acceptable to all.

The use of digital assets in Oman has been welcomed with mixed reactions and I like it that the Omani sutanate is requesting for public feedback on the regulation of virtual assets in the country. My guess is they don't want to be left out in the digital era as most nations around the world are beginning to look at the possibility of having their own digital currency, and Omani sutanate is giving it a second thought. Though the proposed regulatory frame work is not all about CBDCs, but security tokens, utility tokens, fiat-backed tokens etc and if approved would be great for the Omani people and I hope other Arab nations can take a cue from this.

I was also surprised by the news, and I continued to verify even the linguistic formulas contained in the report in Arabic. Indeed, there is a will from the government to study the project, based on the opinions of the national community. Or rather, the adoption decision has already been taken and work has been done in a record time to prepare for this draft (less than nine months) taking into account the ambiguities that these definitions and concepts may pose. Therefore, it decided to carry out something like a "national consultation" for audit.

We also do not cancel the hypothesis that the Sultanate of Oman has a traditional society clinging to the teachings of religion, and perhaps this consultation is in order for there to be the most compatible percentage with the laws of Islam.
The Sultanate of Oman is considered one of the rich and open Arab countries to development despite the excessive religiosity of society, and it preceded many Arab countries in pursuing policies opened to technology and development before even the United Arab Emirates, but the nature of society has always been an obstacle.

I expect good results from this consultation, and I expect some neighboring countries to follow it, such as the countries of the Gulf Cooperation Council, which currently have the United Arab Emirates and Bahrain, which preceded the Sultanate of Oman to regulate the sector.

In Russia, too, various commissions of specialists were created for several years to prepare the law, and a draft law was written, which later became of no use to anyone.
You can use the practice of Hong Kong, you can use the practice of European MIKA law, but I wonder how the law will be written in accordance with Sharia law.

It is good to see that the government is asking for input from the public. This shows that the government is committed to getting a comprehensive view of the people towards the regulation of the sector. Although regulating the sector is against the philosophy of the creation of Bitcoin, there is a need to make laws to control altcoins and other crypto service providers. Without regulations, the sector will be flooded with diverse shitcoins and other services that are targeted at defrauding the public. We hope that these inputs from the public will be considered in the formulation of the main law. And these laws will not be too rigid which will make Oman unfriendly for the crypto community.

The National Committee for Combating Money Laundering and Terrorist Financing in the Sultanate of Oman had decided on November 9, 2022 to form a committee in cooperation with members of the Central Bank of Oman to study the possibilities of banning the use of virtual assets in the Sultanate of Oman or allowing them according to a new regulatory framework. Then, in December of the same year, this authority summoned experts and specialists to prepare a law regulating the uses of digital assets in the Sultanate of Oman.
https://cointelegraph.com/news/oman-financial-regulator-seeks-feedback-on-proposed-virtual-asset-framework

On the 27th of last July, that authority issued a detailed regulatory draft law and presented it to the Omani public for their assessments and suggestions regarding the law. The draft includes proposals for certain basic definitions and the reasons for their adoption, regulatory requirements for obtaining a license to provide virtual assets services, proposals on the methodology for processing applications, and proposals for transitional arrangements for passage to this new regulatory legal framework.

All components of the Omani people are invited to participate in this national consultation, whether they are individuals or institutions, in the form of an answer to the questions contained in the draft law via an e-mail to an address belonging to the authority. The last date for accepting proposals is August 17.

Link to the draft law in Arabic and English: https://cma.gov.om/Home/EParticipation/LegislationDrafts