The Central Bank of Armenia (CBA) recently approved Regulation “On terms and procedures of e-money operations.” Under the document, companies are to have 30 million AMD (about U.S. $85,000) deposited in the CBA to apply for e-money. Also, individuals cannot effect e-money transactions exceeding an amount of 200,000 AMD (U.S. $555).

The Regulation aroused concern among some companies and individuals. Aram Azatyzan, CEO, TelCell Company, told NEWS.am that the new regulation is unacceptable. “For instance, if a company applies for e-money to the amount of 5 million AMD, it must have a 30 million AMD deposit,” Azatyan said. He also regards as unacceptable the 200,000 AMD limitations for individuals.

“iPhone is one of the product items in greatest demand on Internet now, its average price exceeding 200,000 AMD. That is it cannot be bought for e-money, which means that the regulation will hinder e-trade in Armenia,” Azatyan said.

Gevorg Poghosyan, Advisor to the Director of the EDram Company, pointed out that the permissions for e-money open up new opportunities for companies involved in e-trade, namely, direct operations with foreign e-money. However, the CBA regulation imposes restrictions.

“Some services – credit repayment, purchase of air-tickets, household appliances – are worth more than 200,000 AMD,” Poghosyan said. He pointed out that limitations on the use of e-money are in effect throughout the world to prevent money laundering. However, the ceiling is much higher.