RESEARCH: Oman Securities (Cryptocurrency and Digital Asset Regulatory Requirements)

As of: [Date]

Executive Summary

Can you operate here? Oman has no dedicated cryptocurrency licensing regime. Digital asset activities fall under the general securities framework (Securities Law, Royal Decree 80/1998 as amended; FSA Law, Royal Decree 62/2023). No VASP, exchange, or custodian licenses have been issued. Entities must fit existing securities categories—effectively blocking pure-play crypto operations. Any entity seeking to conduct digital asset activities should engage the FSA pre-application for formal guidance.

Regulatory Framework

The Financial Services Authority (FSA) was established as the principal regulator for the securities and capital markets sector in the Sultanate of Oman under Royal Decree No. 62/2023 (issued July 2023), succeeding the former Capital Market Authority (CMA). The FSA exercises both regulatory and legislative roles over the financial services sector. Financial Services Authority

The primary legal basis for securities regulation in Oman is the Securities Law promulgated by Royal Decree No. 80/1998, as amended (including amendments under Royal Decree No. 4/1974 and subsequent amending decrees). The law establishes the framework for market conduct, licensing, disclosure obligations, and investor protection. The FSA's regulatory mandate explicitly includes a "Regulatory and Legislative Role," underpinning its authority to issue rules governing securities activities, including any digital assets that fall within the securities definition. Executive Regulation for the Securities Law

The Executive Regulation of the Securities Law is set forth in FSA Board Decision No. 1/2021 (current consolidated version). This regulation specifies in detail the licensing categories, capital requirements, ongoing obligations for licensed entities, and the procedural requirements for obtaining FSA authorization. All references to the Executive Regulation in this document refer to FSA Board Decision No. 1/2021 unless otherwise stated.

The FSA operates a centralized e-services platform accessible at e.fsa.gov.om, which serves as the primary channel for regulatory filings, license applications, and compliance submissions for securities market participants. Financial Services Authority

Oman is a member of the Middle East and North Africa Financial Action Task Force (MENAFATF) and underwent a comprehensive Mutual Evaluation in 2021. The FATF Mutual Evaluation Report for Oman (2021) is publicly available on the FATF/MENAFATF websites and includes the full assessment of Oman's AML/CFT framework and its technical compliance ratings for each of the 40 FATF Recommendations. Follow-up reports, where applicable, are also published. FATF/MENAFATF MER Oman 2021

Licensing Requirements

Any company operating in the securities field in Oman must obtain a license from the FSA, pursuant to Article 24 of the Securities Law (RD 80/1998) and the licensing provisions of the Executive Regulation (FSA Board Decision No. 1/2021). The licensing regime is administered through a dedicated e-service titled "Issuing a License for a Company Operating in the Securities Field," which is the sole authorized pathway for market entry. Financial Services Authority

The FSA e-services portal (e.fsa.gov.om) provides Service ID 1119 for securities company license issuance (verify current ID on portal). The application process is conducted entirely through the FSA Business Portal under the "Corporation Services" category.

License renewal is a separate and mandatory process, with the FSA providing a dedicated e-service for "Renewal of License for a Company Operating in the Securities Field," indicating that licenses are issued for a defined period (typically one year) and must be actively maintained.

Companies seeking to expand their physical presence must obtain approval for branch operations through the "Securities Companies Branch License New Request" e-service, which is distinct from the main company license application.

Licensed Categories. The Executive Regulation (FSA Board Decision No. 1/2021) establishes the following categories of regulated entities:

• Companies Working in the Field of Securities — general licensed securities firms
• Capital Market Institutions — specialized institutions authorized for capital market activities
• Valuation Companies — entities authorized to conduct valuations for securities law purposes

The authorized persons register, publicly accessible via the FSA website, categorizes entities under "Companies Working in the field of Securities" without a separate digital asset classification. The FSA has not announced or listed any entity as a licensed cryptocurrency exchange or digital asset trading platform. No VASP, exchange, or custodian licenses have been issued.

Capital Requirements. Under FSA Board Decision No. 1/2021, capital requirements are imposed on licensed securities companies. For reference, the Omani Rial is pegged to the US dollar at a fixed rate of 1 OMR = 2.6008 USD (1 USD = 0.3845 OMR). Specific capital adequacy thresholds are set out in the FSA licensing regulations and should be verified directly with the FSA Licensing Department for the applicable category. As of the date of this document, detailed capital figures are not published in English on the FSA's public portal; practitioners should verify current amounts via the FSA Licensing Department.

The FSA's e-services portal includes a general service for "Application for Adding an Activity," allowing licensed securities companies to expand their scope of operations subject to regulatory approval. This mechanism could theoretically be used to add digital asset activities, but the FSA has not provided guidance on whether this pathway is available for such purposes.

AML/KYC Requirements

Legal Framework. Oman's AML/CFT obligations derive from the Anti-Money Laundering and Combating the Financing of Terrorism Law (Royal Decree No. 30/2016), as amended. The Central Bank of Oman (CBO) implements AML/CFT requirements for financial institutions under CBO Regulation BM 1147 (on AML/CFT). The FSA applies AML/CFT obligations to capital market entities through its own guidelines and circulars under the Executive Regulation.

Customer Due Diligence (CDD). Licensed entities under FSA jurisdiction are required to implement CDD procedures consistent with the AML Law (RD 30/2016) and CBO Regulation BM 1147, including:

• Customer identification and verification before establishing business relationships
• Beneficial ownership identification requirements consistent with FATF Recommendation 24
• Risk-based approach to CDD, with enhanced due diligence (EDD) for higher-risk customers
• Ongoing monitoring of business relationships

Suspicious Transaction Reporting (STR). Licensed entities must file Suspicious Transaction Reports (STRs) with the Financial Intelligence Unit (FIU) of Oman in accordance with the AML Law (RD 30/2016) and CBO Regulation BM 1147. Reporting timelines and procedures are specified in these instruments and associated circulars.

Travel Rule / FATF Recommendation 16. Oman's FATF Mutual Evaluation Report (2021) assessed the country's compliance with FATF recommendations and follow-up measures. Under the FATF framework, as applied to Oman, the Travel Rule imposes obligations on virtual asset service providers (VASPs) to collect and share originator and beneficiary information for virtual asset transfers. As of the date of this document, Oman has not issued VASP-specific Travel Rule implementation guidance. This represents a regulatory gap for any digital asset businesses operating under the securities framework.

FATF Compliance Status. The FATF/MENAFATF Mutual Evaluation Report for Oman (2021) assessed Oman's AML/CFT framework. The full report, including technical compliance ratings (e.g., "Largely Compliant" on specific Recommendations), is available on the FATF website. Follow-up reports published by MENAFATF track Oman's progress in addressing identified deficiencies. FATF MER Oman 2021

General AML Framework. The FSA's Investor Protection Portal establishes a framework where customers of regulated financial firms, including securities companies, can file complaints. Financial services companies under FSA regulation are subject to the authority's overarching "Quality Management Policy" and "Values" framework, which includes maintaining regulatory integrity. If no VASP-specific rules exist, this is stated explicitly: as of the date of this document, no VASP-specific AML/CFT rules have been published by the FSA.

Enforcement Actions

Unauthorized Entities List. The FSA maintains a publicly accessible "Unauthorised Companies List" which identifies entities operating without proper licensing in Oman, including any digital asset businesses that have not obtained the required securities license. This list is accessible via the FSA website and is updated on a rolling basis. Financial Services Authority

Reporting Mechanism. The FSA provides a dedicated reporting form for "Report Unauthorised Entities," allowing the public and market participants to flag unlicensed operators. This serves as an enforcement tool against entities conducting securities activities, including cryptocurrency operations, without authorization.

Complaint Procedures. Customers can file a formal "Complaint against company operating in the field of securities," which initiates a regulatory review process that can result in enforcement action against licensed entities that violate their obligations. A separate complaint mechanism exists for "Dissatisfaction of Service Provided By the FSA," ensuring accountability in the regulatory process itself.

Penalties and Fines. The Securities Law (RD 80/1998) and the Executive Regulation (FSA Board Decision No. 1/2021) provide for administrative fines, penalties, and sanctions for violations, including operating without a license, breaching licensing conditions, and other regulatory breaches. Specific monetary penalties are not detailed in the publicly accessible English-language FSA pages; verification of the Arabic-language text of the Law and Regulation is required for specific penalty amounts.

Prosecution Data. No specific enforcement case details are available in public sources regarding cryptocurrency or digital asset securities activities. This does not indicate the absence of actions; rather, comprehensive enforcement data is not systematically published.

Tax Treatment

VAT. The Sultanate of Oman introduced Value Added Tax effective 16 April 2021 under Royal Decree No. 121/2020 (VAT Law), at a standard rate of 5%. The VAT Law applies to all goods and services unless specifically exempted. As of the date of this document, no specific VAT guidance has been issued on the treatment of cryptocurrency transactions, digital asset trading fees, or mining services.

Corporate Tax. Oman's Income Tax Law (Royal Decree No. 9/2017) applies to all commercial activities conducted in Oman, including those of licensed securities companies. Corporate income tax rates range from 3% to 15% depending on taxable income level and entity classification. No specific guidance has been issued on the tax characterization of digital asset holdings, trading gains, or custody services.

Digital Asset Tax Status — Undefined. Oman's tax authorities have not issued specific guidance on the treatment of virtual assets. Businesses operating in the digital asset space face significant uncertainty regarding:

• Whether profits from digital asset trading constitute taxable business income
• Whether digital assets held as investments are subject to capital gains taxation
• Whether VAT applies to digital asset exchange services or custody fees
• Whether mining operations constitute taxable activities

This absence of guidance creates material tax risk and requires a facts-and-circumstances analysis in consultation with Omani tax advisors.

Key Gaps & Risks

The most significant gap in Oman's digital asset regulatory framework is the absence of a dedicated regulatory category or licensing pathway for cryptocurrency exchanges, virtual asset service providers, or digital asset custodians. The existing framework only provides for "Companies Working in the Field of Securities" and related traditional categories. Financial Services Authority

No licensed digital asset entities. No entity has been publicly announced or listed as a licensed cryptocurrency exchange in Oman. This creates significant uncertainty for businesses seeking to enter the market through proper channels.

Legal classification uncertainty. The FSA has not published specific guidance on whether and how cryptocurrency tokens, stablecoins, or utility tokens would be classified under the existing securities framework. The Securities Law (RD 80/1998) defines "securities" broadly, but the application of this definition to digital assets remains untested.

AML/KYC operational gaps. Oman's 2021 FATF Mutual Evaluation identifies the absence of VASP-specific regulations. No VASP-specific directives implement the FATF Travel Rule or set out tailored CDD thresholds for digital asset businesses.

Tax uncertainty. The absence of specific tax guidance for virtual assets creates material compliance risk, as businesses may face unexpected VAT or corporate tax liabilities.

Regulatory change risk. Oman is still developing its digital asset framework, and businesses operating in this space may face abrupt regulatory developments that could render their operations non-compliant.

Cross-border data flows. Data protection and cross-border data flow obligations for digital asset businesses are not addressed in the FSA's public framework, creating uncertainty regarding customer data handling and international transaction reporting requirements.

Innovative business models. Decentralized finance (DeFi) platforms, peer-to-peer marketplaces, and other novel digital asset business models do not fit cleanly within the traditional securities regulation perimeter, creating "gray zone" compliance challenges.

Sources

• Financial Services Authority, Sultanate of Oman - News
• Executive Regulation for the Securities Law; FSA Board Decision No. 1/2021
• Royal Decree No. 80/1998 (Securities Law, as amended)
• Royal Decree No. 62/2023 (FSA Establishment Law, July 2023)
• Royal Decree No. 30/2016 (AML/CFT Law)
• Royal Decree No. 121/2020 (VAT Law, effective April 2021)
• Royal Decree No. 9/2017 (Income Tax Law)
• CBO Regulation BM 1147 (AML/CFT)
• FATF/MENAFATF Mutual Evaluation Report — Oman (2021) and follow-up reports (available at fatf-gafi.org and menafatf.org)

Note: This document was prepared based on publicly available primary legal sources and regulatory information as of [DATE]. Regulatory positions may have changed. Verification of all legal references, regulatory decisions, and licensing requirements should be undertaken in consultation with qualified Omani legal counsel and the FSA directly before any operational decisions are made. This document does not constitute legal, tax, or financial advice.