Draft law On Cryptoassets debated

The law On Cryptoassets is a mother law, which will initiate the regulation of the cryptoassets sector. The RA Deputy Governor at the Central Bank Armen Nurbekyan said this at the extraordinary sitting of the NA Standing Committee on Financial-Credit and Budgetary Affairs, presenting the draft law On Cryptoassets and the legislative package designing amendments and addenda to a number of attached laws.
According to the rapporteur, the purpose of the initiative is not to regulate any technology, but financial services. While revisiing the draft law, the Central Bank relied on the EU experience, taking into consideration that the legislation regulating the securities sector in Armenia is similar to the EU legislation.
The Deputy Governor of the Central Bank noted that the new draft law On Cryptoassets regulates those assets and services that are not regulated by the current legislation. According to the law, the following services with cryptoassets are proposed to be implemented in Armenia: operation of a trading platform, offering tokens (stablecoins) attached to the asset, custody of crypto-assets, buying and selling (exchange) of crypto-assets on its own account, buying and selling of crypto-assets on the client’s account, acceptance and reporting of orders for execution of transactions with crypto-assets, placement of crypto-assets, management of a portfolio of crypto-assets, consulting, transfer of crypto-assets. Services can be provided only by legal entities that will receive an appropriate license from the RA Central Bank. A number of requirements are set for the provision of services, including minimum entry and capital requirements. Requirements are also set for the protection of client funds, accountability, and prevention of abuse of the crypto-asset market. In particular, client funds cannot be seized against the debts of the person providing crypto-asset services, and the crypto-asset service provider cannot use the funds of its clients for its own interests.
According to the draft law, crypto-asset service providers must make separate records for each client, as well as their own funds. They will also submit regular reports to the Central Bank and their clients.
The rapporteur also answered the MPs’ questions regarding the payment transactions, electronic money, provision of electronic wallet services, licensing, crypto assets, and cybersecurity.
The Chair the Standing Committee on Financial-Credit and Budgetary Affairs Tsovinar Vardanyan proposed also to organize a work debate before the debate of the law in the second reading.
The Committee endorsed the issue under debate. It was proposed to include the legislative package in the draft agenda of the upcoming NA regular sittings.