The Asset Market Supervision Agency (CMA), the financial system regulator of Oman, hopes to create a new regulatory framework for the virtual asset sector in the Sudan.

According to a press release on Feb. 14, the new rules will include the regulation of virtual asset-themed activities, the approval process for virtual asset service providers (VASP), and a framework for identifying and mitigating the risks closely surrounding the new asset types. The public notice reads:

"the purpose of the new regulation is to establish a market economy system for virtual assets, mainly to avoid misuse of rules in the sales market, including a (thorough) regulatory and inspection system."

Several types of virtual asset-themed activities in the proposed basic guidelines include the sale of data encrypted assets, dynamic passwords, login password exchange products and services and the initial sale of coins.

XREG Consulting Limited, a consulting management company for current policy regulation of virtual assets, and Al-Shahry and Partners, an Oman law firm, have been hired to provide advisory services and assistance to CMA in drawing up the latest regulations.

Financial system regulators have made it clear that the proposed strict regulatory framework is in line with Oman's corporate vision for 2040, an initiative dedicated to the economic development of the country where corporate strategic transformation is located, while attracting participants from around the world to Oman.

Although Oman hopes to position itself as a manager in areas such as the selection of virtual assets in the Middle East with the proposed strict regulation, the country's central bank is cautious about cryptocurrencies.

In October 2022, the Central Bank of Oman (CBO) urged Chinese citizens to exercise caution in trading using cryptocurrencies because of the risk of fraud.

In repeated proposals, CBO warned that it did not issue licenses to all entities to buy and sell cryptocurrencies in Oman and that the currency commercial banking law did not cover all digital currencies and application-themed activities.

However, this warning did not prevent Omanis from owning and investing in data assets. According to a recent survey by Souq Analyst, about 65000 households in the country have cryptocurrencies, accounting for 1.9 per cent of the adult population.

Research shows that 62% of locals have long-term login passwords, while 25% say they use their data assets for learning, training and education. Others show that they use cryptocurrencies in their usual transactions.