Armenia Moves to Regulate Crypto: What It Means for the Industry 🚀🇦🇲

Armenia is setting the stage for crypto regulation with a new legislative package approved on February 27. The move aligns the country with European standards (MiCA) and aims to bring transparency and oversight to the growing crypto industry. But what exactly is changing, and why now?

Key Crypto Laws Coming to Armenia 📜⚖️

The Central Bank of Armenia has drafted amendments to 22 laws, introducing new requirements for crypto businesses:

✅ More Oversight – The Central Bank will monitor crypto companies and assess financial stability risks.
✅ Mandatory Reporting – Crypto issuers must submit reports in a White Paper format (simpler than bond issuers' reports).
✅ Ownership Disclosure – Companies must reveal their owners and meet minimum capital requirements.
✅ No Tech Control – The law won't regulate the technology itself, only financial instruments.
✅ Payments Ban – Crypto cannot be used for payments, except for electronic money transactions.
✅ Non-Cash Transactions Only – Crypto trades must happen through digital transactions, not physical cash.

Why Is Armenia Regulating Crypto Now? 🕵️‍♂️💰

The Armenian government cites several risks associated with an unregulated crypto market:

🚨 Fraud & Price Manipulation – Without oversight, companies can trade their own tokens, inflating prices.
📉 Lack of Transparency – Many crypto projects have unknown backers and uncertain financial stability.
💸 Money Laundering Risks – Crypto’s anonymity makes it a potential tool for illicit transactions.
🌍 Catching Up with Global Standards – The EU and US already have strict regulations, and Armenia risks being left behind.

Prime Minister Nikol Pashinyan summed it up best:
🗣 "What will an investor think if they find out you can just buy crypto on the sidewalk here?"

Impact on Businesses & Banks 🏦�*

💳 Armenian banks can now legally offer crypto services, a game-changer for financial institutions.
🚀 Easier Crypto Issuance – Unlike IPO bureaucracies, ICOs will have simplified procedures, making the market more accessible.
🔍 More Transparency – Crypto companies will operate under clearer, regulated conditions.

What’s NOT Covered by the New Law? �*

Not all digital assets fall under regulation:

❌ NFTs – Their unique nature makes standard regulation tricky.
❌ Non-Transferable Assets – Assets that can’t be used for payments or trading remain outside the law.
❌ Central Bank Digital Currencies (CBDCs) – Will be regulated separately by national authorities.

What’s Next? �*

Armenia’s new crypto laws aim to attract international investors and create a stable business environment. However, questions remain:

🔹 Will regulation stay "light," or will authorities tighten control over time?
🔹 Will this push some crypto businesses underground?

For now, the government says it wants a balanced approach, but future risks could lead to stricter rules.

TL;DR: Key Takeaways �*

• Armenia is regulating crypto, following European MiCA standards.
• New rules focus on transparency, banning crypto payments while allowing banks to offer services.
• Fraud, money laundering, and lack of oversight pushed the government to act.
• NFTs, non-transferable assets, and CBDCs are not covered under the new law.
• Regulation is starting light, but future crackdowns are possible.

Armenia is stepping into the regulated crypto world—will it be a boost or a burden for the industry? ⏳💭