Armenia introduces new rules for cryptocurrency turnover
Date: 2025-02-28 Author: Gabriel Deangelo Categories: IN WORLD
Armenia has adopted a bill establishing uniform rules for the cryptocurrency sector. According to Sputnik Armenia, the decision was approved at a government meeting, which marks a significant expansion of regulation, which previously only applied to exchangers. Now the new rules apply to a wide range of market participants.
The Central Bank of Armenia initiated the reforms, proposing changes to 22 laws, as well as amendments to the Civil, Criminal, Tax and Criminal Procedure Codes. According to Armenia Today, European standards were taken into account when developing the legislative framework, in particular the Markets in Crypto-Assets Regulation (MiCA).
Prime Minister Nikol Pashinyan noted that the lack of regulation negatively affected the perception of the country by investors. According to him, legal gaps in the industry could raise questions from potential partners: “How can we be taken seriously if cryptocurrency can be purchased literally on the street without any restrictions? Such questions should have been raised by the market participants themselves.”
As explained by the head of the Central Bank of Armenia Martin Galstyan, the technological aspects of cryptocurrencies are not subject to regulation, the main emphasis is on the financial side of the issue. Companies engaged in the issue and trade of crypto assets are required to disclose information about their owners and comply with the requirements for minimum capital.
The procedure for launching cryptocurrency projects (ICO) will be simplified compared to the public offering of shares (IPO). Issuers of crypto assets will have to provide the Central Bank with a White Paper, but in a simplified form compared to the requirements for the stock market.
The introduction of new regulations is aimed at reducing the risks associated with market manipulation. For example, previously the lack of regulation allowed the same persons to issue and trade tokens, which created conditions for price manipulation. In addition, a mechanism for monitoring the owners of cryptocurrency companies and their sources of funding will be introduced, which should help combat money laundering.
According to the new requirements, the use of cryptocurrencies for payments in Armenia will be prohibited, with the exception of transactions with electronic money. Payment for goods and services is only possible in non-cash form. Licensed legal entities will have the right to provide trading services, cryptocurrency storage services and issue stablecoins.
As Deputy Prime Minister Tigran Khachatryan clarified, Armenian banks will also be able to officially provide cryptocurrency services if they meet the new requirements. According to him, the banking sector has long been interested in this area.
