YEREVAN, August 28. /ARKA/. The future of cryptocurrencies in Armenia was a topic of discussion among participants at the Armenian Cryptocurrency Assets Forum, which recently took place in Yerevan.
During the meeting organized by the Cilicia business club, stakeholders from the crypto industry, banking sector, and business community addressed the challenges posed by the new legislation and the potential for industry growth.
The ARKA News Agency served as the information partner for the Armenian Cryptocurrency Assets Forum.
As highlighted by Nver Sargsyan, the president of the Cilicia business club, the meeting focused on the evolution of the crypto sector following the enactment of the law.
Ten years in the “gray zone”
The participants of the forum reflected on Armenia’s decade-long journey within the cryptocurrency sector.
Artem Harutyunyan, co-founder of WEB3 Armenia, remarked that the absence of regulation had left the industry in a state of legal uncertainty for an extended period. “The Central Bank issued a stringent circular, advising banks to refrain from engaging with these technologies and to avoid opening accounts for IT developers,” the expert recalled. He noted that banks also obstructed the sector’s growth in various ways.
In spite of the challenges, the Armenian crypto community thrived independently. “We had numerous communities where individuals supported one another. Consequently, we managed to surpass our neighbors: in Georgia, the government provided assistance, while in Azerbaijan, events received official funding, and we accomplished more through our own efforts,” emphasized Harutyunyan.
The expert firmly believes that the current regulations from the Central Bank are designed to suppress the crypto sector. “And we will resist it,” he added.
Armenian crypto ecosystem: the success of self-regulation
IT blogger Artak Sahakyan pointed out the significant level of self-regulation present in the Armenian WEB3 sector. “We have communities that have established user groups for education and the promotion of crypto culture. From this perspective, our sector has been firmly established,” he stated.
In recent months, there has been a growing interest from international cryptocurrency exchanges in the Armenian market. “They observe intriguing trends and highly skilled professionals in Armenia. We have several companies that play a crucial role on a global scale,” the blogger highlighted.
Layerswap co-founder and CEO Aram Kocharyan emphasized two primary aspects of the Armenian cryptosphere: cryptocurrency circulation and technology. “Cryptocurrencies represent an innovative technology capable of transforming the entire financial system. For smaller nations with a substantial number of programmers, engineers, and cryptographers, this presents a significant advantage,” he noted.
The expert emphasized the importance of investing in solutions for cryptocurrency challenges at this time. “As cryptocurrencies evolve into a global financial system, Armenia will be equipped with ready-made solutions for the entire world. This represents the primary focus for the country, which, regrettably, does not receive the necessary attention,” stated Kocharyan.
Fraud poses a significant threat
Experts indicate that fraud is among the foremost issues. “There are entities in Armenia that establish financial pyramids disguised as appealing crypto programs,” Kocharyan cautioned. He highlighted the necessity for acquiring new knowledge to safeguard clients against fraud.
Banks and cryptocurrency: transitioning from opposition to collaboration
The meeting’s moderator, Andranik Togramadzhyan, head of digital finance at Cilicia, raised the question: is the country’s cryptocurrency community at a pivotal moment, and what direction will its development take?
Vakhtang Abrahamyan, a representative from Unibank, remarked that there are no formal barriers preventing citizens from engaging in the cryptosphere, provided the process is organized appropriately. The key is to educate individuals on adhering to the regulations.
“If you approach the exchange with five bitcoins, you must be prepared to clarify their source. This is where conflicts emerge with the liberal-minded community, which perceives cryptocurrencies as a counterbalance to the traditional financial system. We believe that a beneficial synergistic effect is achievable,” Abrahamyan elaborated.
Levon Arakelyan, a representative from SkyLabs, acknowledged the distinctions between the crypto and financial communities but expressed optimism regarding the forthcoming integration of cryptocurrencies with the traditional financial sector.
Licensing and Prospects
Vachik Gevorgyan, the CEO of Apricot Capital, stated that once the by-laws are finalized by the year’s end, investment firms will be permitted to apply to the Central Bank for licenses to offer cryptocurrency services.
Vigen Barseghyan, advisor to the head of Artsakhbank, acknowledged the stringent nature of the new legislation, particularly regarding the licensing of banks. The law stipulates that banks are prohibited from directly providing cryptocurrency services; instead, holding groups must establish new companies and secure separate licenses for this purpose.
“Banks, as traditional entities within the financial system, cannot afford to remain uninvolved. Concerns from the community regarding the excessive rigidity of the legislation will diminish over time. The initial phase is always challenging, and issues will be addressed as we progress,” Barseghyan conveyed his optimism.
The banking sector is prepared for transformation
Vakhtang Abrahamyan does not view strict legislation as a hindrance. “While the law complicates processes, information security also presents challenges, yet it is essential. If there is a genuine interest, the possibilities for collaborative projects are boundless,” he remarked.
Ani Hambardzumyan, a representative of the Union of Banks of Armenia, clarified the banking sector’s stance: “Banks function within the confines of stringent local and international regulations. Any deviation could lead to severe repercussions. The Central Bank has endeavored to regulate a perpetually evolving sector, and banks will adapt to this over time.”
She noted that new products and avenues for collaboration are already emerging within the banking community. She emphasized the importance of training bank employees in both international and local practices related to cryptocurrency.
Zaruhi Ghazaryan, a compliance specialist at Converse Bank, highlighted the banks’ readiness to evolve: “The assertion that banks wish to impose barriers is incorrect. We are eager and committed to proceeding correctly within the regulatory framework.”-0-
