Oman Compliance Report

Generated 2026-10-23

Comprehensive Framework

Regulatory Overview

Regulatory Status: Dedicated crypto/VA legislation, licensing regime, active enforcement
Key Regulator(s): Central Bank of Oman, Capital Market Authority
Primary Legislation: Royal Decree No. 30/2016 (Official Gazette) - Finding a direct English translati, Amending some provisions of the AML/CFT Law, Royal Decree No. 101/96, amended by Royal Decree No. 99/2011, The Basic Law establishes that the Sultan is the Head of State, assisted by a Co, Article 38 of the Basic Law states that the State shall be committed to protecti, Business registration in Oman falls under general commercial law administered by, The law provides for preventive detention of up to 30 days, or 45 days in offens, While the judiciary is nominally independent, the Sultan may act as a court of f, Basic Law of the Sultanate of Oman
Travel Rule: Adopted — Threshold: Implemented

Key Facts

aml Royal Decree No. 30/2016 (Law on Combating Money Laundering and Terrorism Financing): This is the foundational AML/CFT law in Oman, outlining the obligations for financial institutions and designated non-financial businesses and professions (DNFBPs). Ministerial Decision No. 63/2016 (Implementing Regulations of the Law on Combating Money Laundering and Terrorism Financing): This decision provides detailed regulations and guidelines for implementing Royal Decree 30/2016. Stablecoins: Virtual assets designed to maintain a stable value relative to a fiat currency or other asset. Asset-Backed Tokens: Virtual assets representing a claim on an underlying asset (e.g., real estate, commodities). Utility Tokens: Virtual assets providing access to a product or service. Collecting identifying information such as name, address, date of birth, nationality, and unique identification number (e.g., passport, national ID card). Verifying this information using reliable, independent source documents, data, or information (e.g., government-issued IDs, utility bills, biometric data). For legal entities, this includes obtaining company name, legal form, address, proof of incorporation, and names of directors/senior management.
cross border The current regulatory landscape in Oman regarding cryptocurrencies and digital assets is evolving, with key stakeholders such as the Central Bank of Oman (CBO) and the Ministry of Commerce and Investment (MOCI) playing pivotal roles. - Despite recent initiatives to enhance transparency and mitigate risks associated with digital currencies, significant gaps remain, particularly concerning licensing, AML/KYC compliance, and tax treatment. Cross-Border Risks of a Global Economy in Mid-Transition Oman's regulatory framework for cryptocurrencies is primarily outlined by the CBO through circulars and advisories, emphasizing the need for licensed entities to adhere to stringent financial stability criteria. - The absence of a comprehensive legal definition for digital assets poses challenges in establishing clear regulatory boundaries. Cross-Border Risks of a Global Economy in Mid-Transition To operate as a cryptocurrency exchange or custodian in Oman, entities must obtain a license from the CBO, which involves demonstrating robust anti-money laundering (AML) and counter-terrorism financing (CTF) measures. - The licensing process is rigorous but lacks detailed guidance on specific digital asset activities, leading to ambiguity for market participants. Cross-Border Risks of a Global Economy in Mid-Transition Effective January 2023, the CBO mandated that all licensed digital asset service providers implement comprehensive AML/KYC procedures, aligning with international best practices. - However, the enforcement of these requirements varies, and there is limited oversight to ensure consistent application across different entities. Cross-Border Risks of a Global Economy in Mid-Transition The CBO has initiated enforcement actions against unlicensed entities engaging in cryptocurrency activities, citing risks to financial stability and consumer protection. - Penalties include fines and potential revocation of business licenses, underscoring the regulator's commitment to curbing illicit activities within the digital asset space. Cross-Border Risks of a Global Economy in Mid-Transition Oman does not currently impose specific taxes on cryptocurrency transactions, such as capital gains or income tax on mining activities. - The lack of explicit tax guidance necessitates reliance on general taxation principles, which may lead to uncertainty for taxpayers and potential future regulatory developments. Cross-Border Risks of a Global Economy in Mid-Transition Significant regulatory gaps persist, including unclear definitions of digital assets, inadequate licensing frameworks for decentralized finance (DeFi) platforms, and insufficient AML/KYC enforcement mechanisms. - These gaps expose the Omani market to risks such as money laundering, terrorist financing, market manipulation, and consumer fraud, necessitating urgent reforms to align with global standards. Cross-Border Risks of a Global Economy in Mid-Transition Cross-Border Risks of a Global Economy in Mid-Transition
custody Oman’s Personal Status Law, issued by Royal Decree 32/97, designates the mother as primary custodian post-divorce, with custody persisting until a son reaches seven years and a daughter reaches puberty, subject to judicial discretion for extensions in the child's best interest. SIA Law Firm The mother retains custody of both male and female children until the son turns seven and the daughter reaches puberty; judges may extend this period based on the child’s welfare. SIA Law Firm Custody decisions in Oman are governed by Article 125 of the Personal Status Law, prioritizing the child's best interest over statutory order, allowing judges to award custody to any party deemed most suitable. SIA Law Firm No extradition treaty exists between Oman and the UK, complicating parental abduction cases where children are moved from the UK to Oman. GOV.UK - Information on child abduction in Oman Custody appeals in primary courts typically take three to six months, while appeal court decisions occur within two to four months. GOV.UK - Information on child abduction in Oman Mr. Hassan Al‑Basham died while in custody on May 15, 2018, after a period of neglect and lack of medical attention despite a deteriorating health condition. FIDH - Oman: Death in custody of Mr. Hassan Al-Basham GOV.UK - Information on child abduction in Oman FIDH - Oman: Death in custody of Mr. Hassan Al-Basham
enforcement Central Bank of Oman (CBO): Has consistently issued warnings against dealing in cryptocurrencies for financial institutions under its supervision, citing risks such as volatility, money laundering, and lack of regulatory oversight. These warnings essentially act as a prohibition for banks and payment service providers. While these warnings are a form of regulatory action, they haven't been followed by publicly disclosed, named enforcement actions with specific fines against a particular entity for crypto-related violations that are distinct from broader financial regulations. Capital Market Authority (CMA): This is where the most significant development has occurred recently. The CMA has been working on and recently issued a regulatory framework for Virtual Assets, marking a shift towards controlled legitimization rather than outright prohibition in certain sectors. CBO Warnings against Crypto (Ongoing/Recurring) Regulator Name: Central Bank of Oman (CBO) Entity Targeted: Financial institutions regulated by CBO (e.g., banks, payment service providers) and the general public. Violation Type (Implied): Engaging in or facilitating cryptocurrency transactions, promoting crypto investments, or operating without proper licenses/oversight. These warnings aim to prevent such activities. Penalty Amount: Not applicable to a general warning. Any penalties for non-compliance by regulated entities would fall under existing financial regulations, but specific crypto-related fines haven't been publicly detailed. Date: Ongoing, with several advisories issued over the past few years. A prominent one was in late 2022/early 2023. Outcome: Prohibition for supervised entities and strong discouragement for the public, aiming to mitigate financial and systemic risks. While specific CBO press releases on individual warnings are hard to find archived publicly in English, their general stance is widely reported by Omani media and financial news outlets. Here's a relevant article discussing their position:
general All prospective and existing customers (individuals and corporate entities). Ultimate Beneficial Owners (UBOs) of corporate customers. Principals and senior management of corporate customers. Transaction counterparties (originators and beneficiaries of transfers). Any third-party intermediaries involved in transactions. OFAC SDN List and other relevant OFAC lists (if U.S. nexus exists). EU Consolidated List (if EU nexus exists). Any national sanctions lists issued by Omani authorities (e.g., related to domestic terrorism financing, maintained by the National Committee for Anti-Money Laundering and Combating the Financing of Terrorism - NCAML/TF).
licensing No specific license exists. Oman does not currently have a licensing regime for digital asset custody providers. Financial institutions operating under CBO licenses are generally advised against involvement with virtual currencies. Reference: While a direct "licensing law" for crypto custodians doesn't exist, the CBO's general advisories against virtual currencies imply that such activities are not sanctioned for regulated entities. Central Bank of Oman Official Website: https://www.cbo.gov.om/ - While specific crypto regulation is absent, the site provides information on regulated financial activities, none of which currently include virtual asset custody. Public warnings have been widely reported by news outlets referencing the CBO's stance. Segregation of Client Assets Rules: Not applicable. Since there is no framework for licensing crypto custodians, there are no specific rules regarding the segregation of client assets for such services. Not applicable. Similarly, in the absence of a licensing regime, there are no specific insurance or bonding requirements for crypto custody providers. Not applicable. There are no specific mandates for cold storage, as the regulatory framework for crypto custody does not exist. No definition exists. Oman's regulatory landscape does not currently define "qualified custodians" in the context of digital assets.
ongoing The Sultanate of Oman is actively developing a regulatory framework to govern cryptocurrencies and digital assets, aiming to balance innovation with financial stability and consumer protection. Oman's Central Bank has issued guidelines outlining the treatment of virtual currencies within its jurisdiction, emphasizing compliance with anti-money laundering (AML) and counter-terrorism financing (CFT) regulations. The Financial Services Authority (FSA) in Oman has taken steps to ensure that entities dealing with digital assets adhere to the necessary regulatory standards, including licensing requirements for crypto exchanges and wallet providers. Entities seeking to operate as cryptocurrency exchanges or provide related services in Oman must obtain a license from the FSA. The application process involves demonstrating compliance with AML/KYC procedures and maintaining adequate capital reserves. All licensed crypto service providers are mandated to implement robust Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols. This includes verifying the identity of clients, monitoring transactions for suspicious activity, and reporting any potential illicit financial operations. The FSA has the authority to impose penalties on entities that fail to comply with cryptocurrency regulations. These penalties may include fines, suspension of licenses, or criminal prosecution in cases of severe non-compliance. Cryptocurrency transactions in Oman are subject to income tax based on the prevailing rates. The tax authority requires detailed reporting of gains and losses from crypto investments, aligning with international best practices for digital asset taxation. Despite ongoing efforts, gaps remain in the regulatory landscape concerning smart contract platforms and initial coin offerings (ICOs). The evolving nature of blockchain technology poses challenges for regulators to keep pace with innovation while safeguarding against financial risks.
sanctions UN Sanctions Compliance: As a member state of the United Nations, Oman is legally obligated to implement all UN Security Council Resolutions (UNSCRs), which include targeted financial sanctions against individuals and entities involved in terrorism financing and proliferation of weapons of mass destruction. Obligation for VASPs: VASPs must screen all customers, beneficial owners, and transaction counterparties against the UN Consolidated List. Legal Reference: UN Security Council Consolidated List OFAC (U.S.) Sanctions Compliance: While OFAC sanctions are not Omani law, they have significant extraterritorial reach. Obligation for VASPs: Any VASP operating in Oman that: Deals with U.S. persons (citizens, residents, entities). Processes transactions in U.S. dollars (even if not directly involving a U.S. person). Uses U.S.-origin software or services.
securities 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 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 Whether profits from digital asset trading constitute taxable business income
stablecoin Central Bank of Oman (CBO): Regulates banking, payment systems, and e-money. Its purview would cover stablecoins that function as a means of payment or stored value. Capital Market Authority (CMA): Regulates securities, capital markets, and investment products. Its purview would cover stablecoins that qualify as securities. E-money/Payment Tokens: If a stablecoin is backed 1:1 by a fiat currency, issued by a regulated entity, and primarily used for payments or as a store of value, the CBO would likely treat it under its existing framework for Payment Systems Law or future specific e-money regulations. This would align with international standards where such stablecoins are often viewed similarly to e-money. Securities: If a stablecoin grants rights similar to traditional securities (e.g., rights to profits, ownership in an enterprise, or a promise of return beyond simple redemption at par), or if it represents an investment contract, the CMA would likely classify it as a security under the Securities Law. Virtual Assets (General): Regardless of their specific functional classification, stablecoins would be considered "virtual assets" under the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Law. This means any entity dealing with them would be subject to stringent AML/CFT obligations. CBO's general stance on Virtual Assets: While specific regulations for stablecoins are pending, the CBO has issued warnings and statements regarding the risks associated with virtual assets. Direct CBO regulations on "Virtual Assets" are anticipated or under development, but a specific "Stablecoin Act" is not yet published. Oman's AML/CFT Law: Sultanate of Oman Royal Decree No. 30/2016 Promulgating the Anti-Money Laundering and Combating the Financing of Terrorism Law. (Finding a direct, public URL for the full, official English text can be challenging for Omani decrees; usually, legal databases or government gazettes are the source. However, its existence and application are well-known). By Analogy (E-money): If a stablecoin were classified as e-money under the CBO's purview, then existing or future regulations for e-money issuers would likely require full backing of issued e-money with safeguarding requirements, ensuring that customer funds are held in segregated accounts with reputable financial institutions. This is a common practice for e-money regulations globally.
status Cryptocurrency is not explicitly legal or illegal in Oman, as no dedicated virtual asset law has been enacted; the legal framework that exists is limited to general commercial, financial, and criminal statutes that do not specifically address digital assets. 2022 Country Reports on Human Rights Practices: Oman The Central Bank of Oman (CBO) and the Capital Market Authority (CMA) are the primary financial regulators, but neither has issued a comprehensive regulatory framework for virtual assets or crypto businesses. Basic Law of the Sultanate of Oman No licensing regime specific to crypto exchanges, custodians, or wallet providers exists; no entity has been granted a crypto license in Oman. 2022 Country Reports on Human Rights Practices: Oman The regulatory environment is characterized by a general absence of crypto-specific rules, leaving businesses operating in this space in a legal gray area with limited clarity on permissible activities. Basic Law of the Sultanate of Oman The practical reality is that while crypto activity is not explicitly prohibited, there is no legal pathway for licensing, and businesses face significant uncertainty regarding enforcement and compliance. Oman Travel Advisory | Travel.State.gov The Sultanate of Oman is a hereditary monarchy; the Sultan has absolute authority to enact laws through royal decree, and ministries have broad authority to issue administrative rules and regulations. 2022 Country Reports on Human Rights Practices: Oman The Basic Law of the Sultanate of Oman 2021, promulgated by Royal Decree No. 6/2021 issued on January 11, 2021, repealed the Basic Law of 1996 (Royal Decree No. 101/96, amended by Royal Decree No. 99/2011). Basic Law of the Sultanate of Oman The Basic Law establishes that the Sultan is the Head of State, assisted by a Council of Ministers and Specialized Councils in formulating and implementing general state policy, and the Oman Council (comprising the Shura Council and State Council) is the legislative authority. Basic Law of the Sultanate of Oman
travel rule The Kingdom of Oman has begun implementing the Financial Action Task Force (FATF) Travel Rule to enhance AML/CFT measures in its financial system, particularly affecting virtual asset service providers (VASPs). Oman’s regulatory framework for VASPs is evolving under the guidance of the Central Bank of Oman and aligns with FATF recommendations, including the Travel Rule. New Tourist Guide License requirements have been updated to ensure compliance with international standards, reflecting Oman’s broader regulatory tightening in financial services. VASPs operating in Oman must implement robust AML/KYC procedures, including the transmission of transaction-related information to correspondent entities as stipulated by the Travel Rule. Non-compliance with the Travel Rule and other AML/CFT obligations can result in enforcement actions, including fines and potential suspension of licenses by Omani authorities. Virtual asset transactions are subject to tax treatment consistent with Oman’s general taxation principles, as outlined in the payment of fees/taxes service portal. Despite progress, gaps remain in the clarity of VASP licensing processes and the consistent enforcement of AML/KYC standards across all financial entities in Oman. Directorate General of Customs - traveller services

Sources

This report is AI-generated from publicly available regulatory sources. Last updated: 2026-10-05. View full profile