Tuesday, October 1 2024 21:05

ArmInfo.In Armenia, the uncontrolled cashing of cryptocurrency in large volumes creates serious problems and  stimulates crime, while the Central Bank's policy for regulating the cryptocurrency market is not known. On October 1, one of the MPs posed this question to Levon Sahakyan, a member of the Central Bank  Council who was re-elected to this position.

In particular, the MP noted that the cryptocurrency market has been  actively developing recently. He focused on the fact that currently  in Armenia no documents are required when cashing out cryptocurrency,  which allows large sums to be cashed out uncontrollably. "If we are  moving towards a universal income declaration, then such behavior in  the cryptocurrency market creates serious problems," he noted. The MP  asked the representative of the Central Bank about the steps the  regulator is taking regarding exchange offices and if there are any  specific solutions in place.  Central Bank Council member Levon  Sahakyan began to explain the Central Bank's stance on digital  assets. He used a completely absurd example to illustrate his point:  "If such an asset closely resembles securities or financial products,  then it falls under the cryptography category in terms of technology.  In such cases, the Central Bank's approach implies that such  financial assets should be regulated based on their essence, rather  than their technological aspect."

Sahakyan, however, added that in a broad sense, the regulatory field  of  a financial asset like cryptocurrency should be controlled: "The  Central Bank has an initiative bill on financial assets, and we  intend to submit this document to parliament along with the  legislative initiative of the Ministry of Internal Affairs." He  explained that these two initiatives propose that transactions  involving financial assets such as cryptocurrency  be conducted   without cash at the final stage, which involves a specific  identification process. As a result, the non-cash form of these  transactions will eliminate anonymity for both individuals and legal  entities.

The deputy did not calm down and brought to the attention of the  Central Bank representative  the current situation with uncontrolled  cashing of cryptocurrency. It is such that it is not known where the  funds came from or where they went. This can be called a classic  example of money laundering.  In response, Saakyan repeated that the  bill allows for non-cash transactions with cryptocurrency.  "The  Central Bank is considering the associated risks on one hand, while  also attempting to balance the possibilities through regulation,"  Sahakyan added without saying anything specific.