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OSCE Workshop Improves Armenia’s Crypto Finance Legal Landscape
In order to strengthen the Armenian regulatory framework for virtual asset service providers (VASPs), the OSCE organized a workshop on 25-27 June in Yerevan. Bringing together participants from the Financial Monitoring Center and the Prosecutor General’s Office of the Central Bank of Armenia, the workshop aimed to strengthen the regulatory compliance of VASPs operating in the country.
The focus was on the operational dynamics of VASPs, their business models and the complex legal dimensions governing crypto-assets. A team of OSCE experts provided an in-depth analysis of the current regulatory environment for virtual assets, for example, the applicability of existing regulatory measures around cryptocurrency transactions and the complexities of verifying ownership transfers on blockchain platforms.
Given the rapid evolution of the sector, the experts also discussed strategies to combat illicit financial activities in the field of cryptocurrencies. Participants analyzed the risks associated with cryptocurrencies compared to traditional fiat currencies and proposed robust mitigation strategies. To uncover telltale patterns of financial crimes in crypto transactions, they discussed leveraging data analytics and effective methodologies to visualize transaction networks.
An expert from the National Bank of Georgia, who participated in the workshop, shared his experience on how Georgia developed a regulatory framework for VASPs with the support of the OSCE.
“The regulation of virtual assets and their service providers plays a crucial role in protecting financial systems from illicit activities. By establishing strong regulatory frameworks, we strengthen transparency, mitigate money laundering and terrorist financing risks and foster a safer environment for innovation in the digital economy,” said Vera Strobachova-Budway, Head Acting Chief Economic Officer of the OSCE.
“This workshop highlights the importance of collaborative efforts to shape effective regulatory practices that balance innovation and accountability, ensuring sustainable growth and integrity within the virtual assets sector,” she added.
The OSCE actively promotes international collaboration and knowledge sharing in the fight against financial crime and strengthens regulatory frameworks to ensure the integrity and security of global financial systems.
This workshop was part of an OSCE extra-budgetary project on “Innovative policy solutions to mitigate money laundering risks associated with virtual assets”, funded by Germany, Italy, Poland, Romania, the United Kingdom and the United States.