Armenia’s Central Bank Considers Cryptocurrencies Transactions Risky
The Central Bank of Armenia (CBA) has issued a statement warning of cryptocurrency risks and urging the society, including legal entities to refrain from exchanging, trading and or investing in cryptocurrencies.
According to the CBA, these transactions are risky as cryptocurrencies are deprived of security and strictly unstable, there are no legally responsible subjects in most of the plans with the use of cryptocurrencies.
Transactions with cryptocurrencies can sometimes become as part of money laundering and terrorist funding plans, and their return is impossible to ensure.
The Bank said it closely follows the developments in the sphere and cited several factors that pose risks. It noted that cryptocurrencies are not backed by anything and are therefore extremely volatile.
The regulator added that the cryptocurrency deals may often be part of money laundering and terrorism financing schemes, as they allow for anonymous cross-border transactions, which are irreversible.
Cryptocurrencies may seem attractive at the first glance, but taking into account the fact that in this case the public interests are not protected at all, people, by making investments in cryptocurencies or transactions with them, may face significant financial losses or lose their investment completely due to high fluctuation of cryptocurrency price, hacker attacks and presence of other risks.
The Central Bank called attention to the statement adopted during a recent G20 summit in Buenos Aires, in which the participants welcomed the technological innovation, but cited a number of cryptocurrency-related risks and urged organizations developing international standards to continue monitoring the cryptocurrencies and related risks.
Armenia’s Central Bank remains committed to the stance over cryptoassets which is in line with the approaches of the aforementioned leading financial structures.
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