⚖️ New Draft Law on Crypto Assets

Armenia has introduced a draft law “On Crypto Assets” aimed at ensuring market transparency, protecting consumer rights, and establishing supervisory mechanisms. However, the draft includes numerous provisions that are not only inconsistent with the nature of the technology but also significantly hinder the development of the industry by weakening local businesses and deterring international investment.

📌 Key Provisions Worth Noting

1. Licensing restricted to legal entities
Only legal entities registered in Armenia may offer crypto-related services, under full licensing and supervision by the Central Bank.

👉 This excludes individuals and forces SMEs into complex bureaucratic procedures.

2. De facto ban on cash exchanges
The draft prohibits any form of crypto exchange in cash, allowing only non-cash transactions.

👉 This is especially harmful to tourists and immigrants from Russia, Iran, and other countries who lack access to Armenian banking or international payment systems. For many, cash remains the only viable method of exchanging crypto.

➡️ This limits financial freedom and reduces Armenia’s attractiveness as a tourism and investment destination.

3. Harsh barriers for foreign companies
Foreign crypto firms may only operate by establishing a local branch or subsidiary in Armenia — with Central Bank approval.

👉 This creates a closed and burdensome environment in a space that is meant to be open and borderless.

4. Central Bank’s excessive oversight
The Central Bank is granted full discretion to:

reject registrations,
demand changes to offering documents,
introduce extra service requirements.

👉 Such concentration of authority poses a serious risk to business freedom and fair competition.

5. Strict control of crypto transfers
Before processing any transfer, service providers must disclose detailed technical and security information to clients in accordance with CB regulations.

👉 Unlike DeFi, the goal here seems to be to control every step — which is unrealistic for decentralized technologies.

🧭 Why this law won’t stop illegal activity

Crypto was born for peer-to-peer value exchange without intermediaries. State regulation of such processes goes against its very nature.

Moreover, if the goal is to fight Telegram fraud, this is the wrong tool. No law can block VPNs, dApps, mixers, or blockchain anonymity. The solution lies in stronger cyber-investigative capacity — not stricter paperwork.

📣 Armcoincrypto’s Position

We at Armcoincrypto support laws that protect consumers, investors, and businesses. But this draft law threatens those very values.

📌 We SUPPORT:

regulation rooted in technology,
business-friendly legal frameworks,
alignment with international standards,
protection of individual freedom and privacy.

📌 We OPPOSE:

overcomplicated licensing,
a complete ban on cash crypto exchange,
restricted foreign company access,
unchecked power of a single regulator.

🧠 You can’t protect a house with a paper wall

Armenia has the potential to become a regional blockchain hub — but only if regulations empower, not suppress, innovation. Smart, inclusive, and future-ready rules are needed.

To protect the economy, we must rethink, not restrict.

📄 You can read the full draft law here: