The Chairman of the Central Bank of Armenia Martyn Balstyan said that cryptocurrencies are associated with serious risks, as they can be used to finance illegal activities.

To the question of the deputy of Arman Egoyan from the Civil Treaty party, whether the Central Bank trusts cryptocurrencies and how they can be used in Armenia in the future, Galstyan replied that the Central Bank was instructed to develop the rules for regulating the activities of companies working with cryptocurrencies. According to Galstyan, cryptocurrencies, assets and artificial intelligence (AI) are completely different terms, to which a separate approach should be applied without mixing them together.

“Do not treat cryptocurrencies excessively optimistic or pessimistic. We need to be pragmatic – to understand how to control these innovations and develop mechanisms to reduce risks, ”Galstyan said.

He emphasized that the Central Bank works at the institutional level, and not with individual users. Commercial banks are engaged in relations between individuals, companies and finances. When asked whether banks will serve citizens who own crypto actures, Galstyan replied that this depends on the readiness of banks for risk and on whether customers could explain the origin of their digital assets.

“If the cryptocurrency enters the banking system, and we do not understand where it came from – maybe it is received from the sale of missiles in Syria or from trading by children’s bodies in Ukraine – how can the bank take on this risk? Banks must learn to rationally manage such risks, so that in the future crypto services become more affordable, ”Galstyan concluded.

In February, the Armenian government approved a bill introducing uniform rules for cryptocurrencies. The issuers of crypto assets and companies selling cryptocurrencies will be required to disclose information about the owners and comply with the requirements for minimal capital.