Armenian Government Approves Major Crypto Regulation Bill
The Armenian government has approved a new law on cryptoassets, this is the country's first step toward regulating the fast-growing cryptocurrency sector. Alongside this law, a package of amendments to related regulations has also been introduced. Officials say the move will create a structured legal framework for digital assets while addressing potential risks associated with their use.
According to Finance Minister Vahe Hovhannisyan, the growing circulation of cryptoassets worldwide, including in Armenia, has led to increased public participation in the sector. However, the absence of clear regulations has caused legal uncertainty, particularly for businesses, investors, and government institutions interacting with digital assets.
"The lack of a regulatory framework has resulted in legal challenges for service providers dealing with cryptoassets," Hovhannisyan stated. "It has also complicated cooperation with government bodies and hindered the establishment of stable, long-term relationships with customers and investors."
Beyond legal issues, the minister warned that unregulated crypto markets pose serious risks, such as money laundering, terrorist financing, and fraud. Without proper oversight, customers lack sufficient protection, and authorities have no means to monitor or mitigate financial crimes linked to cryptocurrencies.
The newly approved law introduces a regulatory model designed to ensure the sustainable development of Armenia’s crypto sector. It outlines measures to safeguard customer rights, improve transparency, and mitigate systemic financial risks. The law will also grant the Central Bank of Armenia the authority to collect data on crypto-related activities and take action against potential financial crimes.
"The main objectives of this law are to protect the legitimate interests of customers, ensure fair and transparent operations, and reduce financial instability risks caused by unchecked cryptoasset growth," Hovhannisyan explained.
Prime Minister Nikol Pashinyan, who has supported the introduction of crypto regulations, acknowledged that the new law is not flawless. However, he emphasized that taking the first step toward regulation is more important than waiting for a perfect solution.
"This is our first attempt to regulate the cryptocurrency sector," Pashinyan said. "Yes, this regulation is not perfect. But the absence of regulation is far worse than an imperfect one. Therefore, this is a crucial step that we must take boldly and decisively."
The prime minister added that the Armenian government must continue working to improve its understanding of cryptocurrencies. He stressed that even though Armenia is behind in implementing such regulations, it is better to act late than never.
While the new law sets a foundation for crypto regulation, challenges remain. As the industry evolves, the government will likely need to update and refine its approach to address emerging risks and technological advancements. Experts believe ongoing collaboration between regulators, businesses, and international bodies will be essential for Armenia to create an effective and balanced crypto regulatory environment.
