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Oman&#8217;s Capital Market Authority (CMA), the regulator and developer of the financial markets, announced a plan to outline a regulatory framework for the virtual assets and virtual asset service providers in the Sultanate.



CMA&#8217;s plan came during a public stakeholders engagement session. <a href="https://cma.gov.om/" target="_blank" rel="noreferrer noopener">According to a press release</a>, 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.



CMA started taking steps on the ground to prepare the framework by appointing XReg Consulting Limited, an international policy and regulatory consultancy specializing in virtual assets, and Said Al-Shahry and Partners, Advocates &amp; Legal Consultants (SASLO), an Omani law firm, to benefit from their expertise in expertise in policy, law, and technology to assist the authority in developing a comprehensive framework.



However, the Central Bank of Oman was cautious about cryptocurrencies. In October 2022, the bank called on Omani citizens to be cautious regarding investing in digital assets. According to Cointelegraph, nearly 65,000 residents in the Sultanate hold cryptocurrencies.

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Oman Plans To Set up Regulatory Framework for Virtual Assets

A recent report showed that there is a high level of awareness across the Gulf countries about NFTs, metaverse, and cryptocurrencies, especially among younger and high-income males.



Chalhoub Group released a new report titled ‘GCC State of the Metaverse and its Potential for Luxury Retail’ in which it surveyed 1,600 consumers from Gulf countries to measure the actual adoption and future behavior towards metaverse, NFTs, and crypto, <a href="https://www.itp.net/emergent-tech/high-metaverse-awareness-in-the-gcc-presents-huge-opportunities-for-retail-sector-report" target="_blank" rel="noreferrer noopener">according to ITP Website</a>.



The report indicated a high level of awareness among residents in the UAE, Saudi Arabia, and Oman about crypto, NFTs, and metaverse, with a percentage of 77%, 49%, and 46%, respectively.



Chalhoup surveyed luxury consumers in the Gulf countries, showing that 89% would like to see products in the metaverse and 71% have already engaged with a branded virtual experience. Regarding the adoption rates, 48% of the surveyed said they have already invested in crypto, while 23% confirmed that they had engaged with NFTs and actively used metaverse platforms.



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Regarding NFTs, 23% of Gulf countries&#8217; luxury shoppers already own NFTs, while 57% are interested in purchasing NFTs. According to the report, 83% said they would consider NFTs if they could be redeemed for a physical product. The report found that the reason for purchasing NFTs is for investment purposes, with virtual art and sport being the most purchased types.



As for the metaverse, the report asserted that the Gulf countries have the right foundations to render their metaverse-based initiatives successful, driven by tech-savvy youth and enabled by a favorable regulatory environment. The high disposable income in the Gulf countries and regional firms&#8217; desire to experience the metaverse are factors that contribute to the metaverse development in the region.



In addition, their governments are prioritizing incorporating the metaverse into national strategies. Despite the optimistic figures, the report detected some concerns from the users. It reported that 34% of the users are afraid of crypto volatility, while 28% have a lack of trust in NFTs, in addition, 42% have a lack of understanding of the metaverse.



In this regard, Head of Corporate Innovation at Chalhoub Group Nick Vinckier said: &#8220;The GCC is known for its young and tech-savvy consumers who are very knowledgeable about the metaverse while being luxury enthusiasts. For us at Chalhoub Group, we recognize that leveraging the power of Web3 enables us to reinvent the entire customer journey, whether it’s building awareness, increasing brand engagement, enhancing conversion, nurturing loyalty, or launching new business models.&#8221;

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