The Government of the Republic of Armenia has introduced a new bill on “Crypto Assets” and a package of amendments to related laws, which aims to implement comprehensive regulation in the field of crypto assets. This announcement was made by the law firm MB Legal.
Objectives and Justifications of the Crypto Regulation Bill
With the increase in the use and circulation volumes of crypto assets, public involvement in this field has significantly increased in Armenia and other countries. Business activities based on blockchain and other decentralized ledger technologies have also grown. However, the lack of regulation has been a hindrance to innovations and investments in the crypto assets sector.
The absence of regulation also creates risks related to the protection of customer interests and the dangers of money laundering and terrorism financing. Such a situation limits the proper integration and cooperation of the crypto ecosystem with the financial system.
Key Provisions of the New Regulation
The new crypto regulation bill proposes:
- Regulation of public offering and trading of crypto assets.
- Licensing requirements for providing services with crypto assets.
- Mechanisms for protecting reserve assets and customer funds.
- Prevention of abuses in the crypto assets market.
- Measures to combat money laundering and terrorism financing.
The Role of the Central Bank
The Central Bank of Armenia will receive the necessary powers and responsibilities to regulate and supervise the crypto assets market. The bank will also follow international standards and cooperate with relevant organizations to ensure the sector’s compliance with international norms.
Expected Outcomes
The adoption of the law will promote the long-term and stable development of the crypto assets market in Armenia, create new opportunities for investors and customers, and ensure the involvement of international partners.
The crypto regulation bill will establish the necessary conditions for innovative projects, contributing to the economic development of Armenia.
MB Legal offers comprehensive legal support and consultancy regarding the new crypto regulation.
