Oman

Okay, here is the comprehensive report on the current status of retail cryptocurrency trading in Oman, prepared as per your instructions.
## Report: Retail Cryptocurrency Trading Status in Oman

**Report Date:** April 12, 2025
**Prepared For:** Internal Review
**Prepared By:** Financial Regulatory Analyst

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### Topic: Retail_Trading_Status (Cryptocurrency)

**Description:** Assess whether individual citizens and residents in Oman are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).

**1. Status:** **Allowed-Regulated**

**2. Detailed Narrative Explanation:**

The status of retail cryptocurrency trading in Oman is currently classified as `Allowed-Regulated`. This reflects a significant shift from previous years where the activity, while not explicitly banned for individuals, was strongly discouraged and operated in an unregulated space.

**Historical Context & Central Bank Warnings:**
Historically, the Central Bank of Oman (CBO) adopted a highly cautious stance. Starting around 2017 and reiterated in subsequent years (e.g., 2020, 2022), the CBO issued cautionary notices warning citizens and residents about the risks associated with cryptocurrencies. These warnings highlighted volatility, potential for fraud (including Ponzi schemes), lack of legal tender status, and the absence of guarantees or protections under Oman's Banking Law. The CBO explicitly stated it had not licensed any entity to trade cryptocurrencies and that engaging in such activities was at the individual's own risk. While this discouraged participation, it did not constitute an outright legal prohibition on individuals owning or trading crypto assets, leading to a period where activity was effectively `Allowed-UnRegulated` but officially frowned upon.

**Shift Towards Regulation (Capital Market Authority / Financial Services Authority):**
Recognizing the growing demand and the need for oversight, Oman initiated steps towards formal regulation. In February 2023, the Capital Market Authority (CMA) – the body responsible for regulating Oman's capital markets and insurance sectors – announced plans to establish a comprehensive regulatory framework for Virtual Assets (VA) and Virtual Asset Service Providers (VASPs). This framework aimed to cover a wide range of activities, including crypto assets, tokens, exchanges, and Initial Coin Offerings (ICOs).

Key developments include:
*   **June 2023:** The CMA issued Decision No. (E/35/2023), establishing instructions for the registration of VASPs and mandating compliance with Anti-Money Laundering and Combating Financing of Terrorism (AML/CFT) requirements. This decision required entities (legal persons incorporated in Oman, natural persons with a place of business in Oman, or others offering services *in* Oman) wishing to offer VA services to register with the CMA.
*   **July-August 2023:** The CMA launched a public consultation on the proposed comprehensive Virtual Assets Regulatory Framework, seeking feedback on rules covering licensing, supervision, market abuse prevention, and risk mitigation.
*   **August 2023:** The first VASP registration was granted to a local startup, "Easy Coins," which had been operating since 2021 and demonstrated compliance with the CMA's initial registration and AML/CFT requirements.
*   **March 2024:** Royal Decree 20/2024 established the Financial Services Authority (FSA), replacing the CMA and inheriting its functions, assets, rights, and obligations. It is anticipated that the FSA will continue and finalize the work on the VA framework.

**Current Regulatory Environment:**
The establishment of VASP registration requirements under the CMA (now FSA) and the ongoing development (and likely imminent finalization) of a full licensing and supervisory framework signify a move to a regulated environment. While the complete framework might still be bedding in, the legal basis for regulated activity exists.
*   **Legality:** Buying, selling, and holding cryptocurrencies by individuals is permitted.
*   **Regulation:** The activity is intended to be conducted through VASPs registered and eventually licensed by the FSA. These providers are subject to regulatory oversight.
*   **AML/CFT:** Registered VASPs must adhere to Oman's AML/CFT laws (primarily Royal Decree No. 30/2016, as amended), which include requirements for Customer Due Diligence (KYC), transaction monitoring, risk assessment, implementing internal controls, appointing a Money Laundering Reporting Officer (MLRO), and reporting suspicious transactions to the National Centre for Financial Information (NCFI). Oman's AML law broadly defines "funds" to include assets in "electronic or digital" form, thus encompassing virtual assets even without explicit mention.
*   **Investor Protection:** While the framework aims to mitigate risks, the CBO's stance that cryptocurrencies are not legal tender and not guaranteed by the CBO or protected under the Banking Law remains relevant context for retail users regarding inherent investment risks.

Therefore, the status is `Allowed-Regulated` because the activity is legally permissible for individuals, and a regulatory structure (registration, AML/CFT rules under the FSA, with a full licensing framework developed) is in place or being finalized to govern the service providers facilitating this activity.

**3. Relevant Text Excerpts:**

*   **On the shift to regulation by CMA/FSA:**
    *   "The Capital Market Authority (CMA)...has announced its plans to establish the new proposed regulatory framework for Virtual Assets (VA) and Virtual Asset Service Providers (VASP). This move highlights the Sultanate's growing recognition and the CMA's proactive approach to develop the digital assets and fintech industry in Oman." (Source: Capital Market Authority Press Release, Feb 2023)
    *   "The Capital Market Authority (CMA) has issued Decision 35/2023 setting out guidelines for the 'Registration of Virtual Assets Services Providers (VASPs) and Implementation of Anti-Money Laundering and Combating Financing Terrorism'... registration is a prerequisite for issuance of the regulatory framework for licensing, supervision and regulation of virtual assets services providers..." (Source: Oman Observer, June 14, 2023)
    *   "In a significant new development, a new regulatory body, the Financial Services Authority (the FSA), has been established pursuant to Royal Decree 20/2024 (RD). Under the RD...the FSA is mandated to replace the Capital Market Authority of the Sultanate of Oman in its entirety." (Source: Clyde & Co LLP via Mondaq, March 26, 2024 - Note: While the source is Mondaq, it reports on the official Royal Decree)

*   **On the CBO's historical stance:**
    *   "In a cautionary notice issued in 2020, the CBO explicitly stated that it does not recognize cryptocurrencies as legal tender. Furthermore, the bank highlighted that it had not issued any licenses or authorizations to digital asset service providers...stating that anyone dealing in such cryptocurrencies would be doing so at their own risk and responsibility." (Source: Addleshaw Goddard LLP)
    *   "In repeated advisories to the general public, the Central Bank of Oman (CBO) has been warning that it has not licensed any agency or bank to trade in cryptocurrencies in the Sultanate of Oman." (Source: Oman Daily Observer via Zawya, Oct 10, 2022)

*   **On current legality and unregulated nature (prior to full framework implementation):**
    *   "Cryptocurrency trading is not banned in Oman, but the Central Bank of Oman (CBO) does not regulate or endorse digital assets. This means residents can legally trade crypto, but they do so at their own risk." (Source: Bitcoin.com - Note: Reflects the state before full regulation but confirms lack of ban)
    *   "As of July 2020, the Oman government's stance remains the same, the use of cryptocurrency is legal but unregulated." (Source: Freeman Law - Note: Older source, reflects pre-regulatory framework status)

*   **On AML/CFT application:**
    *   "Businesses dealing in cryptocurrencies and other digital assets are subject to AML/CFT laws. These businesses must comply with customer identification requirements, transaction monitoring, and the reporting of suspicious activity." (Source: Arctic Intelligence)
    *   "Royal Decree No. (30) of 2016 on AML/CFT, as amended, does not explicitly mention crypto assets. However... it defines “funds” broadly to include any assets—whether movable or immovable, tangible or intangible—acquired through any means, including those in “electronic or digital” form. While Oman does not have specific legislation governing the use or trading of cryptocurrencies, their use is subject to the general legal and regulatory frameworks, particularly AML/CFT laws." (Source: Library of Congress - Law Library Blogs, Jan 15, 2025)

**4. Source URLs:**

*   **Capital Market Authority (now FSA) Announcements/Consultations:**
    *   CMA Announcement on VA Framework Plans (Feb 2023): [https://cma.gov.om/Home/EPublications/PressRelease/11](https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAJczpjc5t4i8dr4FvIK5Ia_NLf-vdCmgy_pY_ngS7PJquS6nyDXo3FIxshjOyVGFMxHWw1hqR4J6r52Fbv_swcWEHgP3zuMqAoThCqT-ym0b8ROgI6kAHvVvvv3wbXm-t4AfiXTNQ==) (Link from search result [5]) *Note: Direct CMA links may change; this is based on search results.*
    *   CMA Public Consultation Paper (July 2023): [https://cma.gov.om/Home/EParticipation/LegislationDrafts](https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqALDPsv8SBVH7F4FYvSijcgp6kGqMm0M--vrvksBbuTvASgHBLunwnn3OW6SgnYjXmp_VdUKHS8Pj18ek07F7UX0o3VyEjFC9iV_talvIINJHUwn_AYkrKd1vc2d) (Link mentioned in search result [11])
*   **Central Bank of Oman (CBO):**
    *   CBO News/Notices (Check for crypto warnings): [https://cbo.gov.om/news](https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAJ9b2uPMrxdtMYkHRUkjt9a6wmJKIOSF5SZzYIfWZc926lwByv7k5zYo7jNuLOG3QZq5Ot2vIYoabonX-XgsnDV9VRSxwp2eHdpqPq-2Ru7RK9qtrMIpTE=) (General news link from search result [9])
    *   Older CBO Warning Summary (via ONA): [https://omannews.gov.om/topics/en/78/show/104055/cbo-cautionary-notice-on-use-of-cryptocurrencies](https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAIndHI9XjUoS8iOpTAwc0bTyR0RBppfLNdDeyhMxmZjaWjd_Y6eIt21uS9ro7UxUn6drUUxy9ko1Jew3jUjMqKy4UoKsoQn8k_FpawQ3o4qdCDhGDvA7XyYSTtnupUX_JTXzMY=) (Link from search result [17])
*   **Reputable Secondary Sources (News/Legal Analysis):**
    *   Library of Congress (Law Library Blogs - GCC Crypto Regulation Part 2): [https://blogs.loc.gov/law/2025/01/regulation-of-cryptocurrencies-in-the-gulf-cooperation-council-countries-part-two/](https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAIdl3BRIjNeI6j3WV0uQughUvAywVGgj_Xngah4h0Lf0a-4tvMou5IXS-PCTULzZ5HzjrbfB9qf-21o6vJBM-CALGHedZ78N-uQdm_EWLs3g2zZ385oPeiRL1Zx3Dk33y7iBFh-HruicIUHeMcu7msjGrTsXj_rmaszhhGU3ShXkRAsBmTMtI9_1tzsZB0grkog0cN4KHGzQ_dWCSPqenzSWFqpT3G8qfozYUoPuw==) (Link from search result [2])
    *   Addleshaw Goddard LLP (Overview of Crypto in Oman): [https://www.addleshawgoddard.com/en/insights/insights-briefings/2024/general/overview-crypto-oman/](https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqALR7T5sIUWcMSD3apj81kFH39XV12Cbw8VGZXAQVrTs4ORwC0RmoJpRfnpSCgZRjwEcYpDgp96h0tqPkU1hGAOJXA_AArIcxcDoMwtbA0gq3RC_0kAyVL1SYUdqYiJLJ1JJkN21ywkkHQ0RyO3vCFdh8veolGRD4uvQ7OezO1Hw4QFyQY_y8ZEQNEna5ASczZPOWFz7dyZtHYjbdhEFly8SR8bVUVdg0hE=) (Link from search result [3])
    *   Oman Observer (Report on VASP Registration Decision): [https://www.omanobserver.om/article/1138279/business/economy/virtual-assets-service-providers-required-to-register-first-cma](https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAI9OuDEJBD_LMyPfXH_XxVkBs_OiOpaZquUrWBXHpIBcXj1ZXI80bnBSSVHgLcOSi3d0sAshQko7O-1HYlc04qEfM2Ku1MTzWuXW5CEgSE8dI4mHg3JZqzHruLDJqWBlVw_B5yfpa84IHg-hSZ8Fv8_qPrKM36JHRDZgn1WY3wD0Yo4McyIu7C2-x_XJVfKxfxJZaD9PH-Htzxu1wfquJNZt3WjUB9r6cb3dEhQVVM25Zo=) (Link from search result [13])
    *   Muscat Daily (Report on First VASP Registration): [https://www.muscatdaily.com/2023/08/13/crypto-platform-easy-coins-gets-cma-registration-in-oman/](https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAJ2JWcFNmi0qzYby7LfbYA1RXoVfEiE7N_RHRhvx_tyDpkts7RyTOB4YMRMAe4SYSTM-em8Aer9WrABlRbcKZoag5S_kZLh8yKJzZpWh-KZXVtrSbh8lk30cnE1uEWlk33stKjMXMOj_ytpiIIHqXN2fTlIPYQRWTH1a43Tl78NGIdhjGJTP0Ra_FpXguc7itFH5dP4Xg==) (Link from search result [15])
    *   Arctic Intelligence (AML/CFT Compliance in Oman): [https://arctic-intelligence.com/aml-cft-compliance-in-oman/](https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAKhGA4t1OStUqVkXbEWpUVVhqDAAZkADVXh2mlDoJ6LJ7VvdhsT2zyVirD-9nUP0bK0h_mu8nCzpDy-jFDXeiiC8pL27OqA0LuxrnjCKd_hlR7BASEleo2Y8Rpg0vrEsC2LTr9wCmSgTXJio6A4mw==) (Link from search result [19])

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**End of Report**