A number of risks have emerged along with the activeness of the crypto-asset sector, which are largely related to the lack of sufficient mechanisms to protect the interests of customers, and the risks of using the opportunities provided by crypto-assets and their underlying technology for money laundering and terrorism funding. This was stated by minister of finance Vahe Hovhannisyan at Thursday’s Cabinet meeting of the government—as he reported on the bill on approving the package of draft laws on amendments and additions to the law of Armenia on crypto-assets and a number of related laws.

As per Hovhannisyan the continued growth of crypto-asset circulation may also create financial stability risks in Armenia.

According to the minister, the main objectives of the aforesaid bill are to protect the rights and legitimate interests of customers and crypto-asset acquirers in the crypto-asset market of Armenia, to ensure fair and transparent operation of this market, and to reduce systemic risks in this market.

Hovhannisyan added that as a result of these legislative amendments, the Central Bank of Armenia will be able to receive information on activities carried out in the crypto-asset sector, and will respond appropriately to money laundering, terrorism funding, and other risks.

“This is our first attempt to regulate the cryptocurrency sector [of Armenia],” Prime Minister Nikol Pashinyan responded.

“This regulation will not be perfect, and we have not gone to this regulation for so many years, thinking that the regulation may not be perfect, we have tried to make it a little more perfect. It has not become perfect yet and will not become perfect, but we must enter to regulate the sector,” Pashinyan said, noting that the state governance system of Armenia must acquire knowledge about cryptocurrency in the process.

“Yes. There will be criticism that this draft, the law, is not perfect. But the existence of this draft is more perfect than its absence. Therefore, this is a very important step that must be taken boldly and decisively with the logic that we must continue our work in this direction,” the Armenian PM added. “It must be recorded that we are late—but better late than never.”