Armenia may soon go after ter the footsteps of countries like Belarus ter regards to crypto regulation. Freshly proposed legislation provides the ondergrond for legalizing and regulating cryptocurrency mining te the country. Tax exemptions and other incentives will be suggested to miners. If the draft law is adopted, businesses will be able to operate mining facilities without any licensing. This will indirectly legalize cryptocurrency transactions.
Time to Budge with the Times
The bill to regulate the mining of cryptocurrencies like bitcoin has bot introduced ter the parliament ter Yerevan. If Armenian lawmakers vote for the fresh legislation, their country will become the 2nd member-state of the Eurasian Economic Union (EAEU) to demonstrate positive attitude towards the crypto sector. Belarus has already taken steps ter that direction legalizing cryptocurrencies, regulating ICOs, and exempting miners from taxation.
The proposed amendments are fairly liberal. Every private individual and corporate entity te Armenia would be permitted to set up facilities and commence mining, Eurasia Daily reports. No special permits or licenses will be required. The draft exempts miners from taxation until December 31, 2023, and that incentive is retroactive. Mining companies may love other benefits like preferential customs tariffs.
Behind the initiative to legalize cryptocurrency mining is Edmon Marukyan, member of the parliamentary minority, who says he wasgoed motivated by “the need to budge with the times”. Despite his affiliation with the opposition, Marukyan may succeed ter pushing through his Law “On Digital Technologies”, spil there have bot some positive developments te the same direction via the entire region.
Armenia’s neighbor Georgia is a real pioneer ter crypto legalization among countries ter the South Caucasus. The implementation of blockchain technologies there has bot expanding for several years, te both the private and the public sector. The very first bitcoin mining farm te Transcaucasia wasgoed set up ter Georgia, and since 2016 the country’s land register has bot maintained on a blockchain.
Eurasian Winds of Switches
The Armenian government has its doubts about the expediency of crypto legalization and Yerevan has already collective its concerns. The Central Handelsbank came out with a statement warning against the use of bitcoin before it is regulated. “According to the law, virtual currencies are not electronic money”, the handelsbank said three years ago. It promised to investigate the “emission and circulation” of cryptos and user protection practices. The ubiquitous “absence of clear international approach” wasgoed also mentioned.
According to experts quoted by Eurasia Daily, Armenian authorities are wary because they realize that current control mechanisms are insufficient. The weakness of government institutions and the proximity to conflict zones increase the risk of cryptocurrencies being used for illicit activities like money laundering and terrorism financing.
It seems, however, that Armenia is wiggling off its cryptophobia. Recently, a government think-tank made proposals to place different state registers on a blockchain. Plans to create a free economic zone for startups developing distributed ledger applications were announced te January.
Winds of switch are sucking te Eurasia and heating up the crypto climate across the Eurasian Economic Union. The leader te cryptocurrency adoption, Belarus, is preparing to legalize the entire spectrum of bitcoin-related activities. The presidential decree about cryptos, ICOs and clever contracts will come into force by the end of March.
Ter Russia, the Finance Ministry has already published the draft law “On Digital Financial Assets”. Despite its reservations towards cryptocurrencies, the Central Handelsbank has signaled it would not mind the legalization of crypto mining and coin offerings. Russian Prime Minister Dmitry Medvedev recently stressed the need to synchronize efforts with the other EAEU countries and called for a common treatment to cryptocurrency regulation. Kazakhstan, where government leaders met last week, and Kyrgyzstan, which is also a member-state, have taken steps to emerge on the global crypto ordner.
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