Armenia introduces mechanism in  crypto sphere -  CB Deputy Head  presents rules for circulation of cryptocurrencies  

ArmInfo. This, in fact, will become the primary law regulating the crypto sphere, as stated by Deputy Chairman of the Central Bank of Armenia Armen Nurbekyan, during the April 14 parliament session on financial, credit and  budgetary issues, presenting the details of the package of bills and Several  Related Laws>.

According to the Deputy Head of the Central Bank, the development of  the cryptocurrency market, opens up new opportunities for clients,  with many financial services  becoming more accessible 24/7. However,  this also brings new risks  concerning  consumer rights and money  laundering. In this regard, the purpose of this regulation is to  balance these realities, enabling the sphere to develop while  ensuring that  risks are manageable. It should be understood that the  Central Bank is regulating the sphere of financial services, and not  any technologies, he added.  This bill is based on the European  regulation known as The Markets in Crypto-Assets Regulation (MiCA)  and states that crypto assets will not be accepted as a payment  method,  except for  the circulation of electronic money, Nurbekyan  noted.

He also highlighted that the bill emphasizes the significance of  mandating the issuer to publish a White Paper, which usually outlines  its purpose, technology, features, operational principle, tasks and  technical characteristics. The provision of services related to  crypto assets will require license. Price abuse and insider trading  will be prohibited.  A financial hygiene mechanism is also  introduced, allowing for control over the founders of crypto  companies and sources of capital to reduce the risks of money  laundering. The project also aims to protect clients' crypto assets.  Specifically, a client's crypto assets cannot be confiscated for  debts by the individual providing financial services in the  crypto-currency sector. The latter will be prohibited from using the  assets entrusted to them for personal purposes.

Additionally, effective mechanisms will be established to protect the  interests of clients, including procedures for preventing conflicts  of interest, receiving and addressing complaints and claims from  clients, protecting clients' funds, establishing rules of conduct,  disclosing the necessary information and meeting other requirements  to ensure transparency. Clients will have access to professional  services, receive the necessary information for decision-making,  contact the financial ombudsman if necessary, and use other available  opportunities to protect their interests.  Under the regulation, the  Central Bank of Armenia will be able to receive the necessary  information on the activities carried out in the sector, respond  appropriately to financial stability, money laundering, terrorist  financing and other risks. The Bank will be able to cooperate with  regulatory and supervisory authorities of other countries, as well as  international organizations. This will ultimately enhance the  country's reputation.