Risky and Unregulated Crypto Assets of Armenian Officials

The transactions involving cryptocurrencies are highly risky, unstable, and can be involved in money laundering and terrorism financing. Additionally, in most cryptocurrency schemes, there are no legally responsible entities, announced the Central Bank of Armenia, which does not regulate or supervise the circulation of cryptocurrencies within the country, as reported by mediafactory.am.

Nineteen current and former high-ranking officials in Armenia have declared cryptocurrencies, three of whom are engaged in Bitcoin mining.

Transactions carried out with cryptocurrency are unregulated, thus posing a high risk of corruption. The Corruption Prevention Commission, tasked with monitoring the property, assets, and wealth of high-ranking officials, has no mechanism in place to track the movement of officials' cryptocurrencies.

Hetq Media has spoken with officials who declared cryptocurrencies. Most agreed that state oversight over the crypto market is necessary, but until such oversight is in place, they believe they are free to mine and manage their crypto assets.

Tigran Avinyan
Position: Former Deputy Prime Minister, Member of the Board of the Armenian Business Bank, President of the State Interests Fund of Armenia (ANIF), and Chairman of the Board of Trustees of the National Polytechnic University of Armenia and the Fund for Renewable Energy and Energy Saving of Armenia (R2E2)
Crypto Assets: 2 Bitcoin = $120,874 (as of the time of the declaration), 0.02 Ethereum = $82 (as of the time of the declaration)
Comment: “I have been interested in cryptocurrencies even before assuming my position, and I declared them in my first declaration. Recently, I acquired ANT miners that produce Bitcoin, for which I receive certain payments. My miners are square devices that connect to the internet, electricity, and the pool through which production is organized. In order to ensure the transfer from one wallet to another, ANT miners consume some energy, converting that energy into codes, resulting in the creation of a block that joins the general chain. When you organize the production, it is interesting to have a combined production of electricity and a small mining network. I personally buy electricity from the producer for mining. I do not engage in transactions with cryptocurrencies; I keep them as assets. Regulation in this sector is crucial, as cryptocurrencies can create opportunities for corrupt transactions and the circulation of dark money, therefore the Anti-Corruption Committee, the Central Bank, and the Government need to create specific tools.”

Hayk Sargsyan
Position: Member of the National Assembly, Member of the Civil Contract Party
Crypto Assets: 0.16 Bitcoin = $6,286 (as of the time of the declaration)
Comment: “In 2017, when I held no public office, I purchased Bitcoin 'production' equipment, a total of 8 pieces, of various brands and power. These devices operate with electricity and produce cryptocurrency as a result of calculations. I have not made any purchases using cryptocurrency. I have a friend who advised me to invest in this sector at that time, and he is servicing these devices, occasionally cashing out the money and giving it to me in cash or spending it for his other needs according to our agreement.”

Hayk Tsirunyan
Position: Member of the National Assembly, Member of the Civil Contract Party
Crypto Assets: 0.5 Bitcoin = $18,474 (as of the time of the declaration)
Comment: “I did not acquire the cryptocurrency myself but received it in 2015 as repayment for a $300 debt. I have never paid for a service with cryptocurrency or made any transactions. I see a need for legislative regulation in the cryptocurrency sector, as in all other sectors.”

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