Oman Include Real Estate Tokenization In Legal Framework For Virtual AssetsKiana Griffin
The Omani Capital Market Authority will include real estate tokenization in its regulation of virtual assets and also licenses cryptocurrency exchanges. The regulation of Oman’s virtual assets will be completed by the third quarter of 2022.
Kemal Rizadi, Advisor to the Omani Capital Market Authority, made these comments during a real estate exhibition and conference held in Muscat, Oman. According to the comments, real estate tokenization is an option under consideration in the proposed regulatory framework for virtual assets, which is in the process of CMA (consideration in the Sultanate of Oman).
Oman launched a tender to regulate virtual assets in January 2022.
“The regulatory framework for virtual assets and virtual asset service providers currently being established will allow for the first time in the Sultanate of Oman the issuance of virtual assets such as real estate tokens,” said Kemal Rizadi. Real estate tokenization allows a developer to convert properties into blockchain-based tokens, which can then be offered to investors in a similar fashion to bond securitization and sukuk (an Islamic financial certificate equivalent to a bond). This will open up investment opportunities in the real estate sector for local and foreign investors.”
He also noted that the regulatory framework for virtual assets will include the launch of crypto exchanges. He :
“Cryptocurrency exchanges will allow investors to invest in real estate tokens, providing more liquidity to developers interested in raising funds for their projects. This will attract a much wider range of investors to enter the market,” Rizadi explained.
According to him, the Markets Authority is “currently engaging with experts to help develop an international regulatory framework for the management of virtual assets, which may include cryptocurrencies and tokenized assets.”
In his concluding remarks, he confirmed that the regulatory framework for virtual assets will be finalized by the third quarter of 2022.