Representatives of the financial sector of Armenia and the government regulators demand crypto regulations. Furthermore, they insist the Armenian central bank ensure that the crypto industry is in order in Armenia.
Cryptocurrencies can be used for illegal purposes as well. Therefore, calls have been issued for the central bank to bring forth adequate and appropriate regulations.
One of the many entities that have asked for crypto regulations is the State Revenue.
Commission (SRC) of Armenia. SRC is primarily a regulatory body looking into and responsible for customs and tax services in Armenia. However, the recent developments have led the SRC to urge the monetary authority, the Central Bank of Armenia (CBA), to ensure crypto regulations within the country.
This week, the parliament of Armenia held parliamentary hearings for the execution of last year’s state budget. In that hearing, The head of the SRC agency, Rustam Badasyan, discussed the need for crypto regulations. It is also worth mentioning that SRC works closely with the Customs Service, Tax Service, and the Central Bank of Armenia.
Rustam Badasyan, the head of the agency, spoke in front of the parliament of Armenia. He elaborated that the nonavailability of regulations allows shady practices and transactions to be done in the crypto market. As a result, people resort to cryptocurrencies for tax evasions and money laundering. He added that if this continues, the economy of Armenia will be severely affected.
Badasyan further added that due to the lack of proper regulations, authorities are failing to take any action regarding transactions with digital assets. Supporting his statement, he gave the example of a recent case. Badasyan stressed that the exchange of large amounts of fiat cash for cryptocurrencies took place. However, the investigations failed to reach a pragmatic solution before there was no legal framework in the country regarding the crypto industry.
Before Badasyan’s statement, Seyran Sargsyan, the executive director of the Union of Banks of Armenia, stated that the inability to identify the cryptocurrency users is a huge menace to tackle. He further added that there is a need for transparency for crypto transactions. Moreover, he said that the financial institutions in the country neither work with digital currencies nor provide any services regarding it.
However, the calls to bring forth regulations in the crypto industry are ongoing. Therefore, the regulatory bodies and the financial institutions are hopeful that the crypto industry within Armenia will become well-regulated.