https://arka.am-YEREVAN, April 26. /ARKA/. The European model of cryptocurrency market regulation does not meet Armenia’s interests and will not contribute to its development, co-founder of Web3 Armenia non-profit foundation Artem Harutyunyan believes.
The issue was discussed at a government session on Thursday. Central Bank Chairman Martin Galstyan said that the European model will be taken as a basis for legislative regulation of this sphere. The Armenian government has adopted a draft law aimed at combating cybercrime. It also aims at partial regulation of the cryptocurrency sphere.
“On the one hand, there are models used by major economies – the US, Singapore and the UAE, which allowed large companies, IT startups and international players to enter the market and operate on a legal platform, making investments, paying taxes, minimizing money laundering risks and attracting cryptocurrency users. On the other hand – the European Union this year approved a bill, as a result of which all large companies will stop working, will not be registered in the EU, and citizens will pay taxes in other countries,” he said.
The question arises whether Europe itself will be able to follow this legislation, he said.
“In recent years, the cryptosphere has become a direct competitor to the banking system, and the EU is creating the basis for its own banking system. Is there no conflict of interest here between our citizens and the state? Adopting legislation that is disadvantageous for us, the beneficiary of which is the EU banking system, is completely unreasonable. The law should be adopted not following the EU example, but following the model of the US, Singapore and the UAE. The EU example is impractical, it will lead to the fact that instead of paying taxes, Armenian citizens will be forced to engage in unregulated activities. Companies will leave Armenia, cryptocurrency exchanges will close down,” Harutyunyan noted.
He added that adopting a version of the law close to the European one is definitely not in Armenia’s interests.
Harutyunyan suggested holding more extended discussions so that the government can understand all the pros and cons of the proposed model. He noted that the entire Web3 crypto community is ready to provide advisory support to the government and will issue a more detailed statement on the issue in the near future.