Armenia's Central Bank has announced new regulatory measures aimed at banks offering cryptocurrency services. These measures are designed to protect investors and promote financial stability.
New Requirements for Crypto Banking Services
The Central Bank of Armenia has set new rules mandating financial institutions to manage risks associated with cryptocurrencies effectively. Banks are required to comply with stricter standards and establish separate entities with special licenses for crypto services.
Risks and Opportunities for the Financial Sector
These regulations could alter the provision of crypto services, potentially enhancing Armenia's reputation as a competitive crypto hub. The new rules may lead to decreased volatility in crypto-asset markets, particularly regarding tokens like ETH and BTC.
International Standards and the Role of the Central Bank
The implementation of new regulations aims to align Armenia's practices with international standards, such as the EU's MiCA. The regulator, led by Armen Nurbekyan, has indicated a strict approach to oversight, stating, "The regulator will be very strict in cases where businesses are responsible for client accounts."
The measures indicate a push for increased control and transparency in Armenia's financial sector, potentially strengthening the country's market position in the rapidly changing crypto industry.
