The Armenian Parliament has approved significant amendments to its financial legislation, specifically the Law "On Crypto Assets" and the Law "On Non-cash Transactions." These changes, passed in an extraordinary session, are designed to ease the corporate transition into the nation's new regulatory framework for cryptocurrencies.
The Central Bank of Armenia (CBA) is now established as the primary supervisory authority, implementing a mandatory licensing regime for Virtual Asset Service Providers (VASPs). Recognizing the technical and procedural challenges for existing businesses, lawmakers have granted a one-year grace period for these entities to obtain their official licenses once secondary authorization procedures are established.
A major point of contention was the prohibition of cash transactions for crypto trades, originally set to take strict effect on January 1, 2026. To prevent an operational deadlock, authorities have introduced a temporary exemption. Between January 2026 and January 2027, cash payments for crypto transactions will be permitted up to a limit of 300,000 Armenian drams (approximately $790). This compromise addresses a key discrepancy, as commercial banks are currently reluctant to service unlicensed crypto providers, who would otherwise be required to facilitate only non-cash transactions.
CBA Deputy Governor Hovhannes Khachatryan emphasized that, despite the cash allowance, all service providers must perform thorough Know Your Customer (KYC) identification and maintain detailed records for every operation. The ultimate goal of the regulation is to refine the ecosystem to admit only verified and transparent platforms, thereby protecting investor rights. Armenian authorities and Binance executives have noted that the country ranks as a global leader in cryptocurrency adoption, and this framework aims to consolidate Armenia's status as a technological hub in the South Caucasus by offering legal certainty.
