Regulating Digital Currencies: Armenia's Path to Gradual Legalization

Armenia, a country that has been cautious about digital currencies until recently, has taken on the task of developing its own strategy for regulating the cryptocurrency market. This new development occurred as recently as June 2022 when the Central Bank of Armenia presented an ambitious plan for the gradual legalization of virtual assets. This step reflects the country's willingness to embrace international experience in the regulation of digital currencies.

According to the presented concept, key aspects of regulation will involve establishing a legal framework for digital token issuers and increasing transparency in transactions involving these instruments. This will provide investors and users with greater confidence in the security and legitimacy of their operations in the cryptocurrency market.

The Central Bank of Armenia recalls the year 2018 when it advised the country's citizens not to invest in cryptocurrencies, fearing that their widespread use could threaten financial stability. However, the world of digital currencies is rapidly evolving, and traditional financial service providers are facing growing competition from cryptocurrency companies.

The blockchain industry offers unique opportunities and is creating a fundamentally new economy. The state is now interested in implementing appropriate legislation that ensures the safety of both citizens and businesses. This is an important step for Armenia, as the country aims to harmoniously integrate digital currencies into its economy while simultaneously reducing the scale of illicit cryptocurrency use, including money laundering and terrorism financing.