YEREVAN, May 13. /ARKA/. Armenia's financial organizations  do not use cryptocurrencies and do not service crypto assets, Seyran Sargsyan, the executive director of the Union of Banks of Armenia (UBA), said at a press conference on Friday.

"Financial structures do not accept cryptocurrencies as financial assets and  do not carry out transactions with them," he said.

"We need to understand what the main problems in this area are " he said. In this regard, Sargsyan  pointed to suich issues as  identification of clients dealing with electronic currencies, transparency, the regulatory field related to money laundering.

"Unless  these issues are clearly regulated, many more countries, in my subjective opinion, will refuse to carry out transactions with these assets," Sargsyan said.

The global cryptocurrency market has seen high volatility recently. According to Forbes, the cryptocurrency market lost more than $200 billion in one day. Bitcoin exchange rate fell below $26,000 for the first time in 16 months.

Ethereum, the second-largest cryptocurrency, fell below $2,000 to $1,704 for the first time since June 2021. Bitcoin has now risen to $30,000 and Ethereum to $2,000.

Investors are fleeing cryptocurrencies amid record high inflation. Price growth in the U.S. accelerated to 8.3 percent in April, close to a 40-year record. The cryptocurrency market is also under pressure from the collapse of Terra Stablecoin. -0-