TLDR
- The Armenian Parliament approves amendments to facilitate the corporate transition to the new legal framework.
- The Central Bank of Armenia will grant mandatory licenses to digital asset service providers.
- A limit of 300,000 drams is established for cash operations during the grace period.
The Armenian Parliament recently approved a series of significant amendments to its financial legislation, aiming to offer companies breathing room in the face of the nation’s new crypto regulation in Armenia. These modifications, validated in an extraordinary session, directly affect the Law “On Crypto Assets” and the Law “On Non-cash Transactions,” seeking to balance state oversight with the operational reality of local businesses.
Under this legal framework, the Central Bank of Armenia (CBA) assumes the role of the primary supervisory authority, establishing a mandatory licensing regime for Virtual Asset Service Providers (VASPs). Recognizing the technical challenges, lawmakers have granted a one-year grace period for the transition, allowing entities to obtain their official authorization and ensuring the market does not grind to a halt while procedures are formalized.
Commitments on Cash and Investor Protection
One of the most debated points of the crypto regulation in Armenia is the prohibition of cash transactions. Originally scheduled to take strict effect on January 1, 2026, authorities have introduced a temporary exemption that will allow cash payments of up to 300,000 drams (approximately $790 USD) until January 2027.
This measure seeks to avoid an operational deadlock, as many commercial banks remain reluctant to provide services to providers that do not yet hold a final license. Hovhannes Khachatryan, Deputy Governor of the CBA, emphasized that despite this temporary relief, all providers must perform thorough Know Your Customer (KYC) identification and maintain detailed records of every operation.
The ultimate goal of crypto regulation in Armenia is to refine the ecosystem to admit only verified and transparent platforms, protecting investor rights in a nation that, according to Binance executives, ranks as a global leader in cryptocurrency adoption.
In summary, with this framework, Armenia seeks to consolidate its status as a technological hub in the South Caucasus, offering legal certainty and confidence to digital asset users.
