(Note: This is Part 1 of our comprehensive series on Armenia’s crypto framework. For a detailed breakdown of capital thresholds, tax structures, and the step-by-step application process, read [Part 2: How to Obtain a Crypto License in Armenia].)
The landscape for crypto in Armenia is changing fast. A new era of legal clarity has finally arrived, and understanding crypto regulations in Armenia is now essential for market participants. The country recently introduced a comprehensive digital asset framework, bringing structured oversight to the sector.
Armenia is no longer a regulatory grey zone for crypto. The Law on Crypto-Assets (HO-159-N) introduces mandatory Central Bank of Armenia (CBA) licensing, full AML/KYC obligations, and strict prohibitions on market abuse.
From Grey Zone to Regulated Crypto Market: Armenia’s Crypto Journey
For much of the 2010s and early 2020s, cryptocurrency activity in Armenia existed in a legal vacuum. Transactions were not prohibited, but they were entirely unregulated – a grey zone that attracted both legitimate entrepreneurs and bad actors alike.
That changed dramatically in 2025. In February 2025, the Armenian government finalised a draft law and filed it with the National Assembly in April. On 29 May 2025, the National Assembly adopted the Law on Crypto-Assets (HO-159-N). The President signed it on 3 March 2025 and formally entered into force on 4 July 2025, making Armenia the first nation in the South Caucasus to introduce a comprehensive, standalone crypto-asset regulatory framework.
Secure Your Position in Armenia’s Regulated Crypto Market
Understanding the New Legal Framework
The new rules create a transparent and safe environment. Primary legislation officially defines digital assets for legal purposes, separating digital tokens from traditional monetary assets.
To implement the law, the CBA published its first package of subordinate regulatory acts on 21 January 2026, which came into full effect on 31 January 2026. These detailed regulations cover:
- Regulation 7/01: Licensing procedure and conditions for CASPs.
- Regulation 7/02: Minimum capital requirements
- Regulation 7/04: Form and content requirements for crypto-asset offer documents (whitepapers).
- Regulation 7/05:Procedure for the Registration of Persons Providing Crypto-Asset Services, and Managers of Branches of Foreign Persons Providing Crypto-Asset Services
The Central Bank of Armenia acts as the sole regulator. Regulators enforce a strict “same activity, same risk” policy. Therefore, crypto services face oversight rules comparable to traditional finance today.
Scope of Crypto Regulations & Market Integrity
The law defines regulated digital assets as digital representations of value. This broad definition captures payment tokens, for example. Bitcoin, Litecoin, Bitcoin Cash (BCH), stablecoins, and utility tokens.
Crucially, the Law on Crypto-Assets contains explicit and comprehensive provisions prohibiting market abuse, bringing Armenian crypto regulation into line with traditional securities markets. The law expressly prohibits:
- Insider Trading: Trading based on material non-public information.
- Market Manipulation: Artificial price manipulation through wash trading, spoofing, or layering.
- Front-Running: Trading ahead of client orders for personal gain.
- Dissemination of False Information: Spreading misleading data to influence market prices.
Key Regulatory Exclusions
Some assets fall under entirely different legal frameworks. Tokens acting as bank deposits follow traditional banking laws. Digital security tokens must adhere to standard securities legislation. Central bank digital currencies (CBDCs) and genuinely unique, non-fungible tokens (NFTs) remain outside the scope of the Law.
Who is Exempt from Licensing?
The following entities are not required to obtain a CASP (Crypto-Asset Service Provider) licence:
- The Republic of Armenia, the Central Bank, and Armenian municipalities.
- The IMF, ECB, European Investment Bank, and other international organisations.
- Services provided exclusively to legal entities within the same corporate group.
Regulated Activities: What Counts as a “Crypto-Asset Service”?
Article 16 of the Law on Crypto-Assets sets out an exhaustive list of regulated activities. Any entity providing any of the following services in Armenia must hold a CBA licence:
| Service | Description |
| Operation of a trading platform | Running a platform that facilitates buying, selling, or exchanging crypto-assets. |
| Crypto-to-crypto exchange | Exchanging one crypto-asset for another (including fiat swaps). |
| Custody and administration | Safeguarding or controlling crypto-assets or private keys on behalf of clients. |
| Execution of orders | Executing crypto-asset orders on behalf of clients. |
| Proprietary trading | Dealing in crypto-assets on one’s own account. |
| Placement and distribution | Distributing crypto-assets on behalf of issuers (including token sales). |
| Transmission of orders | Receiving and transmitting client orders to other service providers. |
| Portfolio management | Managing portfolios of crypto-assets on a discretionary basis. |
| Advisory services | Providing personalised recommendations to clients regarding crypto-assets. |
(Note: Unauthorised use of terms like “crypto-exchange” or “crypto-broker” in marketing materials without a licence is a direct regulatory violation.
Apply for a CASP License!
A Strategic Regional Hub
Compared to EU regulations, the local framework remains highly efficient. Licensing costs are generally lower than established European jurisdictions, offering a solid strategic position for global expansion, despite lacking passport rights for European Union markets.
Neighbouring Georgia offers a contrasting approach to digital assets, maintaining low taxes and simplified corporate formation processes, but lacking clear regulatory certainty for service providers. Estonia, which previously attracted many startups with friendly digital rules, now mandates full compliance with strict European regulations and enforces substantially higher capital requirements.
Frequently Asked Questions
Do existing companies need to follow the new crypto regulations in Armenia?
Yes. You must secure an official license by 31 January 2027. Operating without this license beyond the deadline carries severe administrative and up to criminal risks.
What are the new rules in Armenia 2026?
In 2026, Armenia introduced clearer regulations for digital assets, focusing on licensing requirements for crypto service providers, stronger anti-money laundering (AML) compliance, and improved consumer protection measures. Businesses dealing with cryptocurrencies must now register and follow stricter reporting standards.
Is cryptocurrency legal in Armenia?
Yes, cryptocurrency is legal in Armenia. Individuals can buy, sell, and hold crypto, but it is not recognized as legal tender. Its use is regulated, especially for businesses and exchanges, which must comply with financial and legal requirements.
