Armenia Requires Licensed Entities for Crypto Services under New Law

- New "Crypto Assets Law" mandates banks to form licensed units for crypto services. - CBA Governor stresses managing crypto risks to enable bank accessibility. On September 11, 2025, Cryptopolitan reported that Armenia’s Central Bank Governor, Martin Galstyan, outlined ambitious steps for pragmatic crypto regulation with the goal of balancing crypto innovation with financial safeguards. During a parliamentary meeting, Galstyan emphasized that commercial banks must effectively manage the risks associated with crypto assets. This approach will make these services more accessible to the public while safeguarding against potential misuse. Armenia implemented the "Law on Crypto Assets" on July 4, 2025, which directs the Central Bank of Armenia (CBA) to develop a comprehensive framework. This framework will provide oversight for crypto-related activities, protect investors, and ensure operational transparency. Galstyan noted that while cryptocurrencies carry substantial risks, including their potential use for illicit activities, a balanced regulatory strategy is essential to mitigate these risks and foster innovation. The new law requires banks interested in offering crypto services to set up separate, licensed entities, and the CBA is currently drafting the necessary by-laws to support this legislation and provide clear implementation guidance. Galstyan further stated that an individual bank’s willingness to engage with crypto holders would depend on its risk tolerance and the client’s ability to prove the legitimate origin of their funds.