Cryptoassets Legislation in Armenia Takes Effect, Establishing Regulatory Structure
In a significant move towards fostering a secure and innovative crypto market, the Central Bank of Armenia has enacted the Law on Cryptoassets, which officially came into force on July 4, 2025. This legislation lays the groundwork for a comprehensive regulatory framework, aiming to balance innovation with effective risk management.
The law mandates that all entities providing cryptoasset services must register and obtain a license from the Central Bank of Armenia. Existing market players have a grace period of one year from the adoption of the licensing by-laws to comply, while new entrants can only operate after completing the registration and licensing procedures.
The regulations establish general rules for the offer, purchase, and sale of cryptoassets, along with market supervision mechanisms. The aim is to create a predictable and secure environment for crypto businesses, while protecting the rights of cryptoasset buyers and increasing public trust in the sector.
To ensure transparency and reliability, only proven, transparent, and reliable companies are permitted to enter and operate in the market. This approach is designed to safeguard the interests of consumers and boost public confidence in the crypto sector.
The law is based on the "same activity, same risk, same regulation" principle. Activities related to cryptoassets that are similar in nature and risk profile to traditional financial activities are to be regulated in the same manner, ensuring consistent oversight.
Within six months of the law's entry into force, the Central Bank's Board will enact by-laws detailing the registration and licensing procedures for crypto service providers and the regulatory rules governing cryptoasset supply.
The legislation also introduces regulatory clarity for businesses to operate in a more predictable and secure environment. The rules governing cryptoasset offerings are also part of the expected sub-legislation. The law is designed to protect the rights of cryptoasset purchasers and foster innovation while managing risks effectively.
In summary, the Armenian framework requires crypto businesses to operate under a licensed regime overseen by the Central Bank, emphasizing transparency, consumer protection, and risk-aligned regulation to foster a secure and innovative crypto market. This move is expected to increase public confidence in the crypto sector and contribute to Armenia's position as a hub for crypto innovation in the region.
The Central Bank of Armenia's law mandates that registered and licensed crypto asset service providers, both new and existing, must adhere to the regulation-focused rules for business operations, ensuring a secure environment for innovation in technology-based finance. In an effort to protect the rights of cryptoasset buyers, establish public trust, and promote transparency, only reliable companies are permitted to operate within this market.
