As of July 4, 2025, the Law "On Crypto-Assets" (HO-159-N) has come into force in Armenia. This law establishes the first comprehensive legal framework for the crypto-asset market in Armenia.
Below are the main provisions of the law.
1. Purpose of Regulation and Authorized Body
Purpose: The main goals of the law are to protect the rights of investors and clients, ensure market transparency, and mitigate risks.
Regulating Body: The primary authorized body for the regulation and supervision of the crypto-asset market is the Central Bank of the Republic of Armenia.
2. What the Law Regulates and What it Doesn't Cover
The law regulates:
The public offering and buying/selling of crypto-assets.
The activities and licensing of entities providing crypto-asset services (exchanges, exchange points, custodians, etc.).
The law DOES NOT cover:
Crypto-assets that are, by their nature, securities, investment fund shares, bank deposits, or insurance contracts (these are regulated by their respective industry laws).
Unique and non-fungible crypto-assets (e.g., most NFTs), if they are not fractionalized.
Digital currencies issued by central banks (CBDCs).
3. Issuance and Public Offering of Crypto-Assets
Whitepaper: For a public offering of crypto-assets, the issuer is obliged to prepare and publish an "Offering Document" which contains detailed information about the issuer and the crypto-asset. This document must be submitted to the Central Bank in advance.
Advertising Requirements: Any advertisement must be accurate, non-misleading, and consistent with the "Offering Document."
4. Crypto-Asset Service Providers (CASPs)
Licensing is Mandatory: To provide crypto-asset services in Armenia, it is necessary to obtain a relevant license from the Central Bank.
Key services subject to licensing include:
Operating a crypto-asset trading platform (exchange).
Crypto-asset custody.
Conducting buying/selling on one's own account or on behalf of a client.
Distribution of crypto-assets, advisory services, portfolio management, etc.
Naming Restrictions: Only licensed companies may use terms like "crypto-exchange," "crypto-broker," "crypto-swap," and similar words in their names.
Participation of Existing Companies: Banks, investment companies, and other financial institutions can also provide crypto-asset services with the permission of the Central Bank.
5. Prohibition of Market Abuse and Investor Protection
Insider Information and Price Manipulation: The law explicitly prohibits market abuse, including the use of inside information and artificial price manipulation.
Client Asset Protection: Service providers are obliged to keep crypto-assets and monetary funds belonging to clients separate from their own funds. These assets are protected in case of the company's bankruptcy.
Transitional Provisions
Persons who were already providing crypto-asset services before the law came into force must obtain a license to continue their activities within one year after the Central Bank adopts the relevant subordinate legal acts.
The Central Bank will adopt the necessary regulatory acts based on the law within the next six months.