Armenia Doubles Down: Extends Landmark Authorization for Crypto Trading with Cash
Yerevan just greenlit more runway for a financial experiment that traditional banks love to hate.
The Regulatory Shift
Armenia's Financial Supervisory Authority (FSA) isn't pulling back. Their pilot program—allowing citizens to exchange national currency for digital assets over the counter—gets a lease on life. This isn't a tentative toe-dip; it's a deliberate stride toward integrating crypto into the formal economy, bypassing the usual digital-only gatekeepers.
Why This Move Matters
Forget complex wallet setups and KYC labyrinths on offshore exchanges. This policy brings crypto acquisition down to earth—literally. It targets financial inclusion, offering a tangible on-ramp for a population where cash remains king. It signals a regulatory maturity that contrasts sharply with the knee-jerk bans seen elsewhere, positioning Armenia as a pragmatic testing ground in the Caucasus.
The Ripple Effect
The extension sends a clear market signal: local demand is real, and the perceived risks are manageable. Watch for increased merchant adoption and legitimized local liquidity pools. It’s a quiet blueprint for other emerging economies watching from the sidelines, proving that integration, not isolation, can be the default stance.
Armenia’s move throws a wrench into the classic finance playbook—the one that still views physical cash and digital assets as rivals. While Wall Street debates ETFs, Yerevan is building bridges where others see chasms. Sometimes, the most bullish signal isn't a price chart, but a government document that reads 'renewed.'
Armenians allowed to exchange crypto with cash in 2026
Armenia is postponing a ban on cash purchases and sales of cryptocurrency into the next year, local media revealed this week. The government has already approved the necessary amendments to the new law “On Crypto Assets” which will be submitted to the parliament soon.
Officials were initially planning to prohibit cash transactions in crypto trading right after the legislation entered into force on July 4, 2025. However, it was later decided to introduce a transitional period before the ban is enforced to help companies adapt to the current regulations.
Crypto businesses were also given a full year to obtain the mandatory licenses from the country’s central bank, Sputnik Armenia recalled in a report on Thursday. Thus, platforms working with digital assets are now free to process cash orders until July 2026, although not without limitations.
The amount of each individual transaction must not exceed 300,000 Armenian drams, or $785 at the time of writing. Furthermore, the selling entity is responsible for conducting proper identification of its customers and keeping full records of all their transactions.
During the interim period, the Central Bank of Armenia (CBA) retains the power to verify compliance of market participants at any given moment. The extension concerns a number of exchange offices operating in Armenia that continue to accept cash for cryptocurrency trades, the news outlet noted.
Armenia takes road to regulated crypto market
Armenian authorities have been taking steps this year to put the country’s crypto space in order. The digital assets bill was finalized in February and filed with the National Assembly in April, before lawmakers passed it at the end of May.
The legal framework introduces regulations governing the trading of coins, the provision of related services as well as the oversight of the market. Ensuring investor protection to improve confidence in the industry is another of its main goals.
Under the legislation, platforms operating with crypto assets, including exchanges and issuers, are obliged to disclose details about their owners and meet minimum capital requirements.
At the time this was proposed, Armenian media and officials explained the particular focus on ownership and capital sources with the need to improve “financial hygiene” in the sector.
Another key feature of the law is that it allows commercial banks to offer crypto services, although to do that, they need to set up a separate legal entity and obtain a dedicated license from the monetary authority.
In April, CBA Deputy Governor Armen Nurbekyan remarked:
“In the presence of uniform rules, Armenian banks, which have long been interested in this domain, can also officially offer cryptocurrency services.”
In September, his superior, the central bank’s Chairman Martin Galstyan, suggested that the banking sector should learn to manage the risks associated with decentralized digital currencies to make their crypto services more accessible.
Armenia praised for crypto growth and regulation
Much like some of its neighbors in the Southern Caucasus, such as Georgia, Armenia has been watching its crypto sector grow over the past few years, but only recently moved to properly regulate it.
This week, Binance’s Marketing Manager in Central Asia and the CIS countries, Stanislav Delyonok, highlighted its status as a regional leader in terms of crypto investments. Quoted by the banking news outlet Armbanks.am on Saturday, he stated:
“Armenia is at the forefront of crypto development, integrating digital assets in various spheres of life.”
The country ranks 14th in the Global Cryptocurrency Investment Index, he pointed out, noting that every tenth resident of the small nation of around 3 million people is already a user of the largest crypto exchange.
“We see a huge potential for the development of Armenia’s crypto ecosystem and highly value initiatives that make digital assets more understandable, SAFE and accessible,” added Kirill Khomyakov, head of markets in Central Asia, Central and Eastern Europe and Africa at Binance.
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