The Armenian government plans to establish consistent regulations for cryptocurrencies, according to Armen Nurbekyan, Deputy Governor of the Central Bank of Armenia (CBA). He shared this during discussions on proposed legislation concerning crypto-assets and related legal amendments at a meeting of the National Assembly’s Standing Committee on Financial-Credit and Budgetary Affairs on Monday.

Previously, Armenia’s regulation of cryptocurrencies only applied to exchange requirements. However, the new rules will cover a broader range of crypto-related businesses within the country. These regulations will focus on the financial aspects of cryptocurrencies, without interfering with their technological development.

Under the new framework, businesses involved in issuing and trading crypto-assets will be required to disclose ownership information and meet minimum capital thresholds. The process for issuing cryptocurrencies will also be streamlined to help mitigate associated risks.

A “financial hygiene” mechanism will be introduced to monitor the founders of crypto-related companies and their sources of capital. According to the CBA, this will help reduce the risks of money laundering in Armenia.

With standardized rules in place, Armenian banks—which have long expressed interest in the cryptocurrency sector—will finally be able to offer cryptocurrency services legally. Following the discussions, the proposed legislation was approved by the parliamentary committee.