AIITONE Partners with UAE’s Royal Office to Boost Fintech Industry in Asia

Oman’s Regulator Invites Feedback on Virtual Asset FrameworkProgressing toward the establishment of its own virtual asset regulations, the Sultanate of Oman is embarking on a significant step by soliciting public feedback on its comprehensive framework.The framework, which governs digital assets, is being developed by the Capital Market Authority (CMA) of Oman. The move reflects the country’s commitment to creating a robust regulatory environment for the virtual asset sector.The CMA’s consultation paper, released last week, outlines the agency’s objectives in crafting this regulatory framework. It aims to provide a viable financing and investment avenue for issuers and investors while also addressing the inherent risks associated with the virtual asset class. Central to this initiative is the integration of business requirements and measures to prevent market abuse.Photo by Niklas Weiss on Unsplash26 key questionsAt the heart of this regulatory endeavor are 26 crucial questions presented to industry stakeholders. Their valuable input will help shape the framework’s core components. These include provisions related to regulatory standards and licensing prerequisites for virtual asset service providers (VASPs), corporate governance, risk management, and the issuance of virtual assets.The proposed framework, as disclosed in the consultation paper, encompasses a spectrum of digital assets. This spans utility tokens, security tokens, fiat-backed and asset-backed stablecoins, and other currencies adhering to the Financial Action Task Force’s (FATF) definition of virtual assets. However, a noteworthy proposal that has garnered attention is the potential prohibition of privacy coins issuance, a decision pending public feedback.Aiming to reinforce accountability and stability, the CMA may mandate that VASPs establish a local presence in Oman through legally recognized entities and physical offices. Additionally, minimum capital requirements could be imposed on these entities. The envisaged framework may also stipulate that virtual asset firms maintain a low percentage of assets in hot wallets, conduct audits of safeguarded assets, and provide evidence of reserves.Shaping regulation through feedbackWith the consultation phase set to conclude on August 17, the public’s valuable feedback will shape the direction of Oman’s virtual asset regulations. The most salient viewpoints may find their place on the CMA’s official website. Following this consultation period, the CMA will proceed to finalize the regulatory framework.Although the public announcement regarding the launch of a regulatory framework was made on February 14, Oman’s journey toward regulating the virtual asset industry began well before. In November 2020, the National Committee for Combating Money Laundering and Terrorist Financing initiated discussions on forming a task force.Comprising officials from the CMA and the Central Bank of Oman, the task force explored whether to permit or prohibit virtual asset activities. Subsequently, in December 2022, consultants were engaged to facilitate the establishment of this new regulatory landscape.The United Arab Emirates, and in particular, the individual emirates of Dubai and Abu Dhabi, have led the way in the Middle East in progressing a workable framework for the digital asset industry. Oman’s proactive approach is following the example set by its regional peer.Shaping its virtual asset framework underlines its desire to foster innovation while ensuring the integrity of its financial landscape. Its latest effort in seeking public feedback is a positive development that should assist it in arriving at a progressive framework.

Dunamu’s Luxury Watch Trading Platform Appoints New C-Suite ExecutivesViver, the luxury watch trading platform and subsidiary of Dunamu, the operator of South Korean cryptocurrency exchange Upbit, has recently made c-suite appointments, as reported by local news outlet News1.Photo by Jaelynn Castillo on UnsplashNew appointmentsThe new CEO of Viver, Moon Jae-yeon, brings a wealth of expertise in running online e-commerce platforms. Before joining Viver, Moon held the position of Chief Strategy Officer (CSO) at Market Kurly, an online platform famous for its early-morning grocery deliveries. Prior to that, he worked at eBay Korea for 17 years.Joining Moon is Seo Hee-sun, who assumes the role of Chief Operating Officer (COO) at Viver. Seo has an impressive background as the Business Group Manager at 11th Street, a major online shopping website in the nation, and has accumulated over two decades of experience in this field.Luxury watchesEstablished just two years ago, Viver aims to leverage Dunamu’s digital asset business know-how to set new standards for trading luxury watches, which serve as both real-world assets and investment vehicles. The appointment of these industry experts is a major step towards achieving this goal.Last year, Viver made noticeable strides in expanding its services. The platform launched its own online application service and also opened a brick-and-mortar store in Apgujeon Rodeo, a bustling hub for fashion enthusiasts in Seoul. Moreover, Viver Labs, the watch trading platform’s repair service, offers expert diagnosis and repair of watches from various high-end brands, including Rolex and Audemars Piguet.Moon has expressed his ambition to elevate Viver’s reputation to the level of renowned timepiece e-commerce platforms like WatchBox in the US and Chrono24 in Germany within the next five years. He emphasized that the company intends to take advantage of Dunamu’s cutting-edge blockchain technology and infrastructure to gain a competitive edge in the market.

Korean Financial Authority Orders Suspension and Levies $1.4M Fine on Crypto Lender DelioDelio, a cryptocurrency lending company based in South Korea, has received a directive from the financial regulatory authority to cease its operations for a duration of three months, according to local news agency Yonhap. Additionally, the company has been levied with a fine amounting to KRW 1.896 billion ($1.4 million).Photo by Riva Ferdian on UnsplashExecutive dismissal recommendedThis announcement was made on September 1 by the Financial Intelligence Unit (KoFIU) under the South Korean Financial Services Commission. In addition to the measures mentioned above, the KoFIU advised the company to remove one of its executives.As a virtual asset service provider (VASP) registered with the financial regulatory authority, Delio offered deposit services with an annual yield reaching up to 10.7%. However, in June of this year, the company abruptly halted its withdrawal services, prompting investigations conducted by both the KoFIU and public prosecutors.Involvement with unregistered VASPsThe KoFIU saw that Delio had engaged in trading activities with unregistered VASPs and had also breached the restrictions on the trading of affiliate-issued virtual assets. These actions are prohibited under the Financial Transaction Information Act.The financial authority identified a total of 171 instances in which Delio facilitated the transfer of its customers’ virtual assets to unregistered VASPs located outside the country. Additionally, the authority also uncovered the company’s engagement in storing the virtual assets of unregistered VASPs.It was also discovered that Delio had not only neglected to assess the risks of money laundering before introducing new products or services but had also failed to fulfill Know Your Customer (KYC) obligations.