The opposition Yelk bloc proposes legalizing the cryptocurrency mining in Armenia “to avoid monopolization of the sphere.”
The draft law on “Development of Digital Technologies” aims to exclude the unnecessary bureaucracy rather than regulate the field, says Mane Tandilyan of the Yelk bloc.
Newly proposed legislation offers tax exemptions and other incentives to miners. If adopted, businesses will be able to operate mining facilities without any licensing. This will indirectly legalize cryptocurrency transactions.
“We have information that there are plans to rapidly monopolize the sphere in Armenia. There are attempts to bring together individual miners and organizations in one place and ban mining in other venues. We have proposed legislation that would not allow this, as we believe the field can be a source of revenue for Armenia,” Mane Tandilyan told Public Radio of Armenia.
Authors of the bill say they have studied the experience of Belarus, Estonia, Germany, Israel and the United States and come to the conclusion that the industry should be liberalized, otherwise miners will chose to move the farms to other countries, e.g. Georgia.
Under the draft law, every private individual and corporate entity in Armenia would be allowed to set up facilities and start mining. No special permits or licenses will be required.
The draft exempts miners from taxation until December 31, 2023. If Armenian lawmakers vote for the new legislation, their country will become the second member-state of the Eurasian Economic Union (EAEU) to demonstrate positive attitude towards the crypto sector. Belarus has already taken steps in that direction legalizing cryptocurrencies, regulating ICOs, and exempting miners from taxation.