Economics

Armenia has no regulatory framework for cryptocurrency

The Central Bank of Armenia has no regulatory framework for cryptocurrency market. CBA Spokesman Harutyun Kbeyan says the Bank keeps an eye on the developments and trends, but “the filed is not subject to regulation.”

According to him, “the cryptocurrency market and the trends are worrisome.”

“In case of cryptocurrencies responsibility lies with citizens that have entered into this kind of financial relations. If an issue lies within the field regulated by law, the CBA oversights the system through certain tools set by the Constitution and the Law on Central Bank. However, in case of cryptocurrencies, there is no mechanism in place that would regulate the market,” Kbeyan told Public Radio of Armenia.

There is a financial monitoring center in Armenia that follows the suspicious transactions starting from money-laundering. The worrisome cases involving cryptocurrencies also fall within the scope of the center’s interest.

Considering the fast-growing market of cryptocurrencies, many countries have come to issue guidelines regulating the field.

Last week Russian President Vladimir Putin instructed the Central Bank and the Finance Ministry to work together to come up with one draft law to provide a basic regulatory framework for cryptocurrencies. Russia is also preparing to launch its own cryptocurrency – the CryptoRuble.

Reports now suggest that Armenia’s partner in the Eurasian Economic Union Kazakhstan also considers launching a cryptocurrency backed by fiat money.

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