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.
