Armenia Introduces First Crypto Regulation Framework to Address Sector Risks
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Loading... - Antar Bennani
- 10 Mar 2025
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Armenia has announced the introduction of a new law on crypto assets, along with a package of amendments to existing legislation, aimed at regulating its growing crypto sector. This initiative, revealed by the prime minister’s office, seeks to establish a structured and secure environment for crypto operations within the country.
Finance Minister Vahe Hovhannisyan highlighted that these legislative changes will create a predictable framework with clearly defined rights and responsibilities for operators in the crypto-asset sector. The new regulations are designed to protect customer interests and ensure transparent market operations, addressing the increasing volume of crypto transactions and public participation in the sector.
The absence of a legal framework until now has led to various challenges, including difficulties in providing crypto-related services, regulatory cooperation, and building stable relationships with clients and investors. Hovhannisyan pointed out several risks associated with the sector, such as inadequate consumer protection mechanisms and the potential misuse of crypto assets for money laundering and terrorist financing. The rapid expansion of crypto transactions also poses financial stability risks, which have been exacerbated by weak regulatory responses.
In response to these challenges, the Armenian government aims to implement a comprehensive regulatory model that supports the sector's growth while mitigating existing and potential risks. The new framework will introduce well-defined legal parameters for crypto assets and their underlying technologies, fostering innovation, particularly in distributed ledger technologies. This approach is expected to attract international players to Armenia's crypto sector and encourage long-term planning for crypto-related activities.
Additionally, the regulation will establish strong consumer protection measures, including mechanisms to prevent conflicts of interest, complaint handling procedures, and safeguards for client funds. Transparency requirements will ensure that clients have access to professional services and essential decision-making information, along with financial ombudsman services and other legal protections.
Under the new regulatory framework, the Central Bank of Armenia will gain enhanced oversight powers to monitor sector activities, address financial stability concerns, combat money laundering and terrorist financing, and collaborate with international regulatory bodies. This initiative is anticipated to bolster Armenia’s reputation in global financial markets, positioning the country as a more attractive destination for crypto investment and innovation.
Overall, Armenia's proactive approach to regulating the crypto sector marks a significant milestone in its efforts to create a secure and transparent environment for digital assets, ultimately benefiting both consumers and the broader economy.
