Amid plans to establish a regulatory framework for virtual assets, Oman has revealed its stance on cryptocurrencies. Tahir bin Salim Al Amri, the Chief Executive Officer (CEO) of the Central Bank of Oman, recently labeled crypto as an asset, although the bank does not recognize the asset class as a currency.
“[Cryptocurrency] is an asset that we at the Central Bank and many central banks around the world do not recognise as a currency,” he said.
Oman Recognizes Crypto as Assets
Per a report by a local media outlet, citing a discussion panel at the Youth Center in Muscat on Monday, the central bank CEO stated that crypto is an asset or commodity that is being traded mainly for capital gain.
Al Amri explained the reason behind the central bank’s standpoint. He cited risks associated with crypto assets as the main reason behind the central bank’s stance. The CEO added that the bank also finds the “governance” around crypto to be too risky.
He, however, noted that the central bank is keeping an open mind on crypto while taking caution.
“All the central banks and the regulators around the world are looking at it with an open mind, but we are also institutions that need to control risk and for the time being we see it as a very risk product,” Al Amri.
Oman to Establish Virtual Assets Regulatory Framework
Al Amri’s statement comes as Oman’s Capital Market Authority (CMA) is preparing to establish a regulatory framework for virtual assets. According to Al Amri, the central bank also participated in the creation of this framework.
CMA said in a press release last week that the establishment of the framework will enable it to avail an “alternative financing and investment platform for issuers and investors while mitigating the risks associated with this asset class.” The financial regulator’s move to establish a regulatory framework for virtual assets has been in the works since 2022.
Image: Midjourney
