Civilnet
By Siranush Adamyan
Armenia’s first comprehensive cryptocurrency regulations entered into force on January 31, bringing the sector under the supervision of the Central Bank of Armenia and introducing licensing, capital, and compliance requirements for service providers.
The new framework follows the Law on Crypto-Assets adopted in 2025 and sets out who can operate in the market and under what conditions.
Companies that were already providing crypto-asset services before July 4, 2025, must obtain a Central Bank license by January 31, 2027. Those who fail to do so will be barred from operating.
Vigen Shahnazaryan, head of the Central Bank’s Securities Market Regulation Department, said the rules aim to eliminate legal uncertainty and create a transparent, regulated environment with clear standards.
He said the measures introduce minimum safeguards for customer rights and address risks related to money laundering and the financing of criminal activity through crypto-assets.
The Central Bank has set minimum capital requirements ranging from about $30,000 to $530,000, depending on the type of business. It has also imposed governance requirements for company management.
Amendments to Armenia’s law on non-cash transactions, effective January 1, require crypto-asset transactions to be conducted exclusively through non-cash methods. During a transitional period lasting until January 31, 2027, cash transactions are allowed only if they do not exceed about $800. Service providers must identify customers and maintain transaction records regardless of the amount.
The Central Bank has supervisory powers similar to those it holds over other financial institutions, including on-site inspections and remote oversight. Operating without a license may trigger penalties, including potential criminal liability.
Industry representatives have criticized parts of the framework. After the legislation was adopted, crypto businesses formed the Crypto Entrepreneurs Union.
Eduard Avetisyan, head of the union and of Bitcoin Armenia, said restrictions on cash transactions put crypto firms at a disadvantage compared with banks and foreign exchange offices, which can still operate in cash.
He said transaction volumes at his company have declined since the new rules took effect. Avetisyan described a case in which a client with $5,000 in cash was unable to buy crypto directly and had to open a bank account and convert dollars before completing the purchase, incurring additional costs.
Some users say the changes have complicated cross-border payments. Mariam Sukiasyan, who works remotely for a foreign company and previously received her salary in cryptocurrency, said she can no longer receive and convert her income as easily as before.
Economist Edgar Aghabekyan described the regulatory package as a positive step toward greater transparency and oversight in Armenia’s financial system. But he cautioned that authorities should ensure the rules do not drive businesses to relocate to jurisdictions with lighter regulation or more favorable tax conditions.
He noted that similar regulatory models have been adopted in the European Union, where a new crypto framework fully entered into force on December 30, 2024.
The Armenian authorities say the reforms are intended to align the country’s financial oversight with international standards while addressing risks associated with the rapid expansion of digital assets.
Read the article in Armenian: Կրիպտոոլորտի նոր կարգավորումներ. ԿԲ-ի վերահսկողությունն ու ոլորտի արձագանքը
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