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Armenia Moves to Strengthen Regulatory Framework for Cryptocurrencies with OSCE Workshop

In a bid to bolster its regulatory framework for Virtual Asset Service Providers (VASPs), Armenia hosted a high-level workshop in Yerevan last week, organized by the Organization for Security and Co-operation in Europe (OSCE).

Strengthening Regulatory Compliance

The three-day event brought together top officials from the Financial Monitoring Center, the General Prosecutor’s Office, and the Central Bank of Armenia to strengthen regulatory compliance among VASPs operating within the country. The workshop delved into the operational dynamics of VASPs, their business models, and the complex legal dimensions governing crypto-assets.

Expert Insights

OSCE experts provided an in-depth analysis of the current regulatory environment for virtual assets, including:

  • The applicability of existing measures around cryptocurrency transactions
  • The complexities of verifying ownership transfers on blockchain platforms

Experts also discussed strategies for combating illicit financial activities within the crypto sphere, analyzing associated risks compared to traditional fiat currencies and proposing robust mitigation strategies. They shared insights on leveraging data analytics and effective methodologies for visualizing transaction networks to unearth patterns indicative of financial crimes within crypto transactions.

International Collaboration

The workshop featured a presentation from an expert from the National Bank of Georgia, who shared their experience in developing a regulatory framework for VASPs with OSCE support.

Regulatory Frameworks: A Key to Safeguarding Financial Systems

“Regulation of virtual assets and their service providers is crucial in safeguarding financial systems against illicit activities,” said Vera Strobachova-Budway, OSCE Acting Senior Economic Officer. “By establishing robust regulatory frameworks, we enhance transparency, mitigate the risks of money laundering and terrorist financing, and foster a safer environment for innovation in the digital economy.”

Importance of Collaboration

The workshop underscored the importance of collaborative efforts in shaping effective regulatory practices that balance innovation with accountability, ensuring sustainable growth and integrity within the virtual asset sector.

OSCE’s Commitment to International Cooperation

The OSCE has been actively fostering international collaboration and knowledge-sharing in the fight against financial crime, strengthening regulatory frameworks to ensure the integrity and security of global financial systems.