Oman
Retail_Trading_Status
- Analysis ID
- #752
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- Latest
- Created
- 2025-12-12 04:58
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- 60cfbc3c...
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Executive Summary
Retail cryptocurrency trading is legal in Oman and falls under a formal regulatory regime overseen by the Financial Services Authority (FSA), formerly the Capital Market Authority (CMA). While the Central Bank of Oman (CBO) does not recognize crypto as legal tender and restricts its use for payments, the FSA has implemented a mandatory registration framework for Virtual Asset Service Providers (VASPs) to ensure AML/CFT compliance. Individuals are permitted to own and trade digital assets, and the country has actively licensed large-scale mining operations.
Key Pillars
Financial Services Authority (FSA): Primary regulator for the virtual assets sector, responsible for licensing and supervising VASPs.
Central Bank of Oman (CBO): Regulates the banking sector's interaction with crypto; prohibits use as legal tender but allows banking services for licensed entities.
Mandatory VASP Registration: All crypto service providers must register with the FSA and comply with AML/CFT rules.
Mining Licensing: Specific government support and licensing for industrial-scale crypto mining (e.g., Exahertz).
Landmark Laws
Decision No. E/35/2023 (Instructions for Registration of VASPs) (Decision No. E/35/2023) - Enacted: 2023-07-01
- Mandates that all Virtual Asset Service Providers (VASPs) register with the authority and comply with AML/CFT requirements. It serves as the foundational regulatory step for the sector.
- Source
Royal Decree 20/2024 (Establishing the Financial Services Authority) (Royal Decree 20/2024) - Enacted: 2024-03-25
- Established the FSA to replace the Capital Market Authority (CMA), transferring all regulatory mandates, including the oversight of virtual assets, to the new body.
- Source
New Banking Law (Royal Decree 2/2025) (Royal Decree 2/2025) - Enacted: 2025-01-01
- Modernizes the banking sector and includes provisions clarifying the CBO's role in approving licenses issued by the FSA, ensuring coordination on digital asset regulation.
Considerations
Legal Tender Status: Crypto is NOT legal tender; it cannot be used for purchasing goods/services directly.
Banking Access: While improving for licensed entities, individual investors may still face scrutiny or blocks from local banks regarding transfers to foreign exchanges.
Mining Hub: Oman is positioning itself as a major crypto mining hub with government-backed projects (e.g., Green Data City, Exahertz).
Taxation: Currently no personal income tax on capital gains for individuals, but businesses are subject to standard corporate tax.
Notes
Oman is following a 'regulation by registration' approach initially, moving towards full licensing. The explicit licensing of mining farms (Exahertz) serves as a strong indicator of the government's acceptance of the technology, even if retail trading is tightly supervised for AML compliance.
Remaining Uncertainties
- The public availability of a consolidated list of fully licensed VASPs (beyond simple registration) remains to be confirmed on the new FSA website.
- The exact operational interaction between the new Banking Law (2025) and FSA licenses regarding direct bank account access for crypto firms needs practical observation.
Detailed Explanation
Detailed Explanation
Cryptocurrency retail trading is legal and regulated in Oman, operating under a formal supervisory framework. The primary regulatory authority is the Financial Services Authority (FSA), established by Royal Decree 20/2024 on 2024-03-25, which succeeded the Capital Market Authority (CMA). The FSA oversees the sector through a mandatory registration regime for Virtual Asset Service Providers (VASPs) as mandated by Decision No. E/35/2023 (Instructions for Registration of VASPs), enacted on 2023-07-01. This foundational regulation requires all VASPs to register with the authority and adhere to Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) rules. The Central Bank of Oman (CBO) also plays a crucial role, as outlined in the New Banking Law (Royal Decree 2/2025) enacted 2025-01-01, which modernizes the banking sector and clarifies the CBO's role in approving licenses issued by the FSA, ensuring coordinated oversight. While the CBO does not recognize cryptocurrencies as legal tender and prohibits their use for payments, it allows banking services for licensed crypto entities, facilitating a regulated environment for service providers. Individuals are permitted to own and trade digital assets, and the government has actively supported the sector by licensing large-scale industrial mining operations, such as Exahertz, positioning Oman as a significant mining hub. The regulatory approach is one of 'regulation by registration,' with an initial focus on AML/CFT compliance for VASPs, moving towards a full licensing regime. There is currently no personal income tax on capital gains from crypto for individuals, though businesses are subject to standard corporate tax. While banking access is improving for licensed entities, individual investors may still encounter scrutiny from local banks when transferring funds to foreign exchanges.
Summary Points
I. Regulatory Status
* Retail cryptocurrency trading is Allowed-Regulated in Oman.
* It operates under a formal regulatory regime overseen by the Financial Services Authority (FSA).
* The country follows a 'regulation by registration' approach, moving towards full licensing.
II. Key Regulatory Bodies
* Financial Services Authority (FSA): The primary regulator for the virtual assets sector, responsible for licensing and supervising Virtual Asset Service Providers (VASPs). It was established by Royal Decree 20/2024, replacing the former Capital Market Authority (CMA).
* Central Bank of Oman (CBO): Regulates the banking sector's interaction with cryptocurrency. It does not recognize crypto as legal tender but allows banking services for licensed entities, with its role clarified in the New Banking Law (Royal Decree 2/2025).
III. Important Legislation
* Decision No. E/35/2023 (Instructions for Registration of VASPs) (Enacted: 2023-07-01): The foundational regulatory step that mandates all Virtual Asset Service Providers (VASPs) register with the authority and comply with AML/CFT requirements.
* Royal Decree 20/2024 (Establishing the Financial Services Authority) (Enacted: 2024-03-25): Established the FSA, transferring all regulatory mandates, including oversight of virtual assets, from the Capital Market Authority (CMA) to the new body.
* New Banking Law (Royal Decree 2/2025) (Enacted: 2025-01-01): Modernizes the banking sector and includes provisions clarifying the CBO's role in approving licenses issued by the FSA, ensuring coordination on digital asset regulation.
IV. Compliance Requirements
* Mandatory VASP Registration: All cryptocurrency service providers must register with the FSA.
* AML/CFT Compliance: Registered VASPs must comply with Anti-Money Laundering and Counter-Financing of Terrorism rules.
* Mining Licensing: Specific government support and licensing is required for industrial-scale crypto mining operations (e.g., Exahertz).
V. Notable Restrictions or Limitations
* Legal Tender Status: Cryptocurrency is NOT legal tender; it cannot be used for purchasing goods or services directly.
* Banking Access for Individuals: While improving for licensed entities, individual investors may still face scrutiny or blocks from local banks regarding transfers to foreign exchanges.
VI. Recent Developments or Notes
* Mining Hub: Oman is actively positioning itself as a major crypto mining hub with government-backed projects like Green Data City and Exahertz.
* Taxation: There is currently no personal income tax on capital gains for individuals from cryptocurrency trading, but businesses are subject to standard corporate tax.
* The explicit licensing of large-scale mining farms serves as a strong indicator of the government's acceptance of the underlying technology.
Full Analysis Report
Full Analysis Report
Oman has transitioned from a cautious observer to an active regulator of the cryptocurrency space, establishing a distinct 'Allowed-Regulated' environment. The regulatory landscape is bifurcated: the Central Bank of Oman (CBO) maintains a defensive perimeter around the fiat currency system, explicitly stating that cryptocurrencies are not legal tender and warning against their use for payments. However, the Financial Services Authority (FSA)—which replaced the Capital Market Authority (CMA) in 2024—has taken charge of the asset class itself, treating crypto as a tradable virtual asset rather than a prohibited instrument.
The cornerstone of this framework is Decision No. E/35/2023, which mandated that all Virtual Asset Service Providers (VASPs) operating in or from Oman must register with the authority. This decision moved the sector out of the gray zone by imposing strict Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) obligations on providers. This was followed by the development of a comprehensive licensing regime, with consultation papers released in 2023 proposing detailed prudential and conduct of business requirements. By 2025, the legal infrastructure was further solidified with the enactment of the New Banking Law, which harmonizes the licensing process between the FSA and CBO.
Practically, this means that retail investors in Oman are legally permitted to buy, sell, and hold cryptocurrencies. There are no laws criminalizing individual possession or trading. The government has actively embraced the industrial side of the sector, issuing formal licenses to large-scale mining operations like Exahertz and Green Data City, which utilize Oman's energy resources. These projects signal a long-term government commitment to the sector, distinguishing Oman from jurisdictions that have banned or marginalized crypto activities.
Despite the regulatory progress, challenges remain for retail users regarding banking integration. While the FSA regulates the assets, the CBO regulates the on-ramps and off-ramps. Banks have historically been hesitant to process crypto-related transactions, though this is changing with the formalization of the VASP regime. Investors are advised to use FSA-registered platforms or internationally recognized exchanges that comply with Omani AML standards to avoid banking friction.
Oman has transitioned from a cautious observer to an active regulator of the cryptocurrency space, establishing a distinct 'Allowed-Regulated' environment. The regulatory landscape is bifurcated: the Central Bank of Oman (CBO) maintains a defensive perimeter around the fiat currency system, explicitly stating that cryptocurrencies are not legal tender and warning against their use for payments. However, the Financial Services Authority (FSA)—which replaced the Capital Market Authority (CMA) in 2024—has taken charge of the asset class itself, treating crypto as a tradable virtual asset rather than a prohibited instrument. The cornerstone of this framework is Decision No. E/35/2023, which mandated that all Virtual Asset Service Providers (VASPs) operating in or from Oman must register with the authority. This decision moved the sector out of the gray zone by imposing strict Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) obligations on providers. This was followed by the development of a comprehensive licensing regime, with consultation papers released in 2023 proposing detailed prudential and conduct of business requirements. By 2025, the legal infrastructure was further solidified with the enactment of the New Banking Law, which harmonizes the licensing process between the FSA and CBO. Practically, this means that retail investors in Oman are legally permitted to buy, sell, and hold cryptocurrencies. There are no laws criminalizing individual possession or trading. The government has actively embraced the industrial side of the sector, issuing formal licenses to large-scale mining operations like Exahertz and Green Data City, which utilize Oman's energy resources. These projects signal a long-term government commitment to the sector, distinguishing Oman from jurisdictions that have banned or marginalized crypto activities. Despite the regulatory progress, challenges remain for retail users regarding banking integration. While the FSA regulates the assets, the CBO regulates the on-ramps and off-ramps. Banks have historically been hesitant to process crypto-related transactions, though this is changing with the formalization of the VASP regime. Investors are advised to use FSA-registered platforms or internationally recognized exchanges that comply with Omani AML standards to avoid banking friction.
Source Evidence
Primary and secondary sources cited in this analysis
"The instructions stipulate that any person can only carry out the virtual assets activity in Oman after registration with the CMA."
"Central Bank of Oman is once again cautioning Citizens and Residents from the use, holding and trading of Crypto Currencies... and clarifies that they are not legal tender."
"The aim of this new framework is to establish a comprehensive yet adaptable regime for the rapidly evolving (virtual assets) sector."
"The FSA is mandated to replace the Capital Market Authority of the Sultanate of Oman in its entirety... overseeing the market for virtual currencies and crypto assets."
"Exahertz received its license from local regulators in September 2022."
Web Sources (5)
Sources discovered via web search grounding
Search queries used (5)
- is crypto trading legal in Oman for retail investors
- Oman crypto mining regulation
- Capital Market Authority Oman crypto framework consultation
- Financial Services Authority Oman virtual assets regulation
- Central Bank of Oman cryptocurrency regulation status 2024 2025
https://www.lightspark.com/knowledge/is-crypto-legal-in-oman
https://www.addleshawgoddard.com/en/insights/insights-briefings/2025/financial-services/overview-of-crypto-in-oman/
https://fsa.gov.om/Home/SearchNews/35?newsId=9581
https://blog.millionero.com/news/oman-capital-market-authority-could-introduce-regulations-for-crypto/
https://bitkan.com/news/oman-seeks-feedback-on-virtual-assets-framework-18453