Growing Crypto in the Middle East: Oman Steps Up Bitcoin Mining Efforts

Over the course of time, Middle Eastern nations have experienced economic prosperity primarily driven by their abundant fossil fuel reserves. These valuable resources have played a pivotal role in fostering economic, financial, and political development throughout the region. In response to the global shift towards renewable energy and sustainability, several Middle Eastern countries, including the United Arab Emirates and Oman, are redirecting their economic focus towards the emerging era of trade.

Oman, in particular, is actively pursuing a transition to digital assets. The nation has recently unveiled a substantial investment in processing machines and mining centres, signalling a new era in its economic landscape. Both the Securities And Commodities Authority (SCA) and the UAE Central Bank have commenced accepting applications from companies looking to offer cryptocurrency services within the country.

Furthermore, the Virtual Assets Regulatory Authority (VARA), hailed as "the world’s first tailor-made Virtual Asset regime," has released its comprehensive Full Market Product (FMP) Regulations. This regulatory framework provides a detailed outline of the government's plans to oversee crypto market conduct, licensing, company operations, and cybersecurity. Specific regulations are also outlined for companies licensed by VARA. Presently, the UAE is intensifying efforts to scrutinize cryptocurrency institutions that deviate from VARA regulations, enhancing control over the industry to safeguard local consumers. Dubai's crypto regulator recently imposed a $2.7 million penalty on OPNX, a venture associated with Three Arrows Capital founders Kyle Davies and Su Zhu. The penalty was levied for alleged violations related to the promotion of virtual assets. OPNX was found to be collecting personal information from Emirati customers, a practice prohibited under VARA. Consequently, the regulatory body issued a cease directive to OPNX.

Despite the directive, OPNX's UAE customers continued to receive promotional messages from the company. The United Arab Emirates, along with neighbouring nations like Oman, is actively positioning itself for a robust entry into the digital asset space, backed by substantial investments and continually updated market regulations.