Armenian Government Approves Bill to Ban Cash Transactions in Cryptocurrency Market
Boosting Transparency and Combating Financial Crimes in Armenia
In a groundbreaking move to regulate the cryptocurrency sector and combat financial crimes, the Armenian government has approved a bill to ban cash transactions for crypto asset operations. The following details the key aspects of this legislation.
Addressing Financial Crimes in Cryptocurrency Operations
Arpine Sarkisyan, Deputy Minister of Internal Affairs, presented the draft law during a recent government meeting on April 25, 2023. She explained that many financial crimes related to cryptocurrencies result from cash transactions, making tracking and investigation challenging. Numerous companies in Armenia engage in cash transactions for cryptocurrency operations, which impedes the ability to trace and identify transaction participants.
Key Points:
- Many financial crimes in cryptocurrency sector are perpetrated through cash transactions
- Detection and investigation is complex due to cash transactions
- Companies in Armenia engage in cash transactions for crypto operations
Implementing a Ban on Cash Transactions for Crypto Asset Operations
To combat these challenges, the proposed bill stipulates that:
- Crypto asset ownership rights, sales, and payments must be registered exclusively through non-cash means irrespective of the transaction amount.
The goal is to increase transparency, deter financial crimes, and make the cryptocurrency sector more regulated within the country.
Regulatory Framework for Cryptocurrency Transactions
Armenian Prime Minister Nikol Pashinyan emphasized the importance of regulating the cryptocurrency market in Armenia during the same government meeting. Martin Galstyan, the head of the Central Bank of Armenia, announced that a new cryptocurrency bill is under consideration. The objectives of this bill include ensuring transaction transparency at the level of traditional banking operations.
Key Points:
- Armenian Prime Minister emphasized the importance of regulating the cryptocurrency market
- Central Bank of Armenia considering a new cryptocurrency bill
- Bill aims to ensure transaction transparency at the level of traditional banking operations
Collaborating with Stakeholders in the Financial Sector
The Armenian government, in consultation with stakeholders in the financial sector, are refining the proposed legislation to establish a regulatory framework for cryptocurrency operations. The principle of “equal risk, equal regulation” serves as the foundation for the regulatory structure.
Key Points:
- Armenian government collaborating with financial sector stakeholders
- Regulatory framework for cryptocurrency operations in development
- “Equal risk, equal regulation” principle is foundation for regulatory structure
Impact of the Bill: A Significant Step Forward for Cryptocurrency Regulation in Armenia
When passed and implemented, this bill will represent a significant step forward in the Armenian government’s efforts to create a robust regulatory environment for cryptocurrency transactions. By preventing cash transactions, the government aims to ensure transparency, minimize financial crimes, and promote the use of cryptocurrencies within a secure and controlled framework.
Key Points:
- Bill represents a significant step forward for cryptocurrency regulation in Armenia
- Preventing cash transactions ensures transparency and minimizes financial crimes
- Promotes use of cryptocurrencies within a secure and controlled framework