Armenia has introduced a draft law \u201cOn Crypto Assets\u201d 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.<\/p>\n
1. Licensing restricted to legal entities<\/strong> \ud83d\udc49 This excludes individuals and forces SMEs into complex bureaucratic procedures.<\/p>\n 2. De facto ban on cash exchanges<\/strong> \ud83d\udc49 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.<\/p>\n \u27a1\ufe0f This limits financial freedom and reduces Armenia\u2019s attractiveness as a tourism and investment destination.<\/p>\n 3. Harsh barriers for foreign companies<\/strong> \ud83d\udc49 This creates a closed and burdensome environment in a space that is meant to be open and borderless.<\/p>\n 4. Central Bank\u2019s excessive oversight<\/strong> reject registrations,<\/p>\n<\/li>\n demand changes to offering documents,<\/p>\n<\/li>\n introduce extra service requirements.<\/p>\n<\/li>\n<\/ul>\n \ud83d\udc49 Such concentration of authority poses a serious risk to business freedom and fair competition.<\/p>\n 5. Strict control of crypto transfers<\/strong> \ud83d\udc49 Unlike DeFi, the goal here seems to be to control every step \u2014 which is unrealistic for decentralized technologies.<\/p>\n Crypto was born for peer-to-peer value exchange without intermediaries. State regulation of such processes goes against its very nature.<\/p>\n 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 \u2014 not stricter paperwork.<\/p>\n We at Armcoincrypto<\/strong> support laws that protect consumers, investors, and businesses. But this draft law threatens those very values.<\/p>\n \ud83d\udccc We SUPPORT:<\/p>\n regulation rooted in technology,<\/p>\n<\/li>\n business-friendly legal frameworks,<\/p>\n<\/li>\n alignment with international standards,<\/p>\n<\/li>\n protection of individual freedom and privacy.<\/p>\n<\/li>\n<\/ul>\n \ud83d\udccc We OPPOSE:<\/p>\n overcomplicated licensing,<\/p>\n<\/li>\n a complete ban on cash crypto exchange,<\/p>\n<\/li>\n restricted foreign company access,<\/p>\n<\/li>\n unchecked power of a single regulator.<\/p>\n<\/li>\n<\/ul>\n Armenia has the potential to become a regional blockchain hub \u2014 but only if regulations empower, not suppress, innovation. Smart, inclusive, and future-ready rules are needed.<\/p>\n To protect the economy, we must rethink, not restrict.<\/p>\n
Only legal entities registered in Armenia may offer crypto-related services, under full licensing and supervision by the Central Bank.<\/p>\n
The draft prohibits any form of crypto exchange in cash, allowing only non-cash transactions.<\/p>\n
Foreign crypto firms may only operate by establishing a local branch or subsidiary in Armenia \u2014 with Central Bank approval.<\/p>\n
The Central Bank is granted full discretion to:<\/p>\n\n
Before processing any transfer, service providers must disclose detailed technical and security information to clients in accordance with CB regulations.<\/p>\n
\n\ud83e\udded Why this law won\u2019t stop illegal activity<\/h3>\n
\n\ud83d\udce3 Armcoincrypto\u2019s Position<\/h3>\n
\n
\n
\n\ud83e\udde0 You can’t protect a house with a paper wall<\/h3>\n