Armenia Fine-Tunes its Crypto Regulations
Armenia’s National Assembly has approved amendments to its recently adopted crypto legislation, signaling a more flexible approach toward regulating the country’s fast-growing digital asset sector. During an extraordinary parliamentary session, lawmakers passed revisions to the laws “On Crypto Assets” and “On Non-cash Transactions” easing immediate compliance pressure on businesses already operating in the market.
The changes arrive as Armenia positions itself as a crypto-friendly jurisdiction, balancing regulatory oversight with practical considerations for companies still adjusting to new legal standards.
Licensing Regime Officially Takes Shape
Under the amended Law on Crypto Assets, all firms offering crypto-related services will be required to obtain a mandatory license from the Central Bank of Armenia (CBA). The original version of the law entered into force on July 4, 2025, but regulators acknowledged that immediate licensing was unrealistic for many existing providers.
Deputy Governor Hovhannes Khachatryan clarified that companies already active before the law’s adoption will now receive a one-year grace period after secondary regulations are finalized to secure authorization. This move aims to prevent disruption while ensuring long-term compliance with Armenia’s new regulatory framework.
Cash Ban Clash Forces Legislative Adjustment
A key issue prompting the amendments was a conflict between licensing timelines and cash transaction rules. The law on non-cash transactions, set to take effect on January 1, 2026, bans the use of cash for crypto trades. However, many service providers may still be unlicensed during the transition, creating uncertainty for both platforms and banks.
Khachatryan openly acknowledged the dilemma, stating that banks would struggle to work with unlicensed crypto firms, while those same firms would be legally required to avoid cash transactions. This regulatory mismatch pushed lawmakers to seek a compromise.
Strengthening Investor Protection and Market Trust
Beyond operational flexibility, the amended crypto law reinforces regulatory oversight and transparency. Only verified, compliant platforms will be allowed to operate once the transition period ends, a move designed to protect investors and reduce exposure to fraud and unregulated actors.
According to Armenian officials, the reforms aim to boost confidence in the crypto market, encouraging responsible innovation while ensuring platforms meet clear legal and financial standards.
Armenia’s crypto ambitions remain intact
The original crypto bill was introduced in February, submitted in April, and passed in late May, reflecting the government’s urgency to regulate the sector. Recent amendments underscore Armenia’s intent to remain supportive of crypto adoption while avoiding abrupt enforcement that could push businesses underground.
Industry leaders, including regional executives from Binance, have previously noted Armenia’s strong position in global crypto adoption, reinforcing the country’s reputation as an emerging digital asset hub.
