Armenia’s Central Bank Governor Advocates Pragmatic Crypto Regulation in 2025

• Why Is Armenia Taking a Pragmatic Stance on Crypto?
• What Does Armenia’s New Crypto Law Entail?
• How Will Armenian Banks Handle Crypto?
• What’s Next for Armenia’s Crypto Market?
• FAQs: Armenia’s Crypto Regulation

In a bold move to balance innovation with financial security, the Governor of Armenia’s Central Bank, Martin Galstyan, has called for a pragmatic approach to cryptocurrency regulation. Speaking before the National Assembly, Galstyan highlighted the risks of crypto assets while emphasizing the need for a balanced strategy. This comes as Armenia implements its new "On Crypto Assets" law, which aims to regulate trading, service provision, and investor protection. Here’s a deep dive into the latest developments and what they mean for Armenia’s crypto landscape.

Why Is Armenia Taking a Pragmatic Stance on Crypto?

Martin Galstyan, Chairman of the Central Bank of Armenia (CBA), didn’t mince words when addressing lawmakers. "Crypto assets pose serious risks, including their potential use in shadow economies and illegal operations," he stated. However, he also acknowledged that outright rejection isn’t the solution. Instead, Galstyan urged a middle-ground approach—one that neither blindly embraces crypto nor dismisses it entirely. "We must avoid extreme Optimism or pessimism," he said. "Pragmatism is key."

This stance reflects a growing trend among regulators worldwide: recognizing crypto’s potential while mitigating its dangers. For Armenia, a country with a burgeoning tech sector, striking this balance is crucial. The CBA is now tasked with developing a regulatory framework that ensures "financial hygiene" without stifling innovation.

What Does Armenia’s New Crypto Law Entail?

Armenia’s "On crypto Assets" law, enacted on July 4, 2025, introduces strict rules for crypto exchanges, stablecoin issuers, and other market participants. Key provisions include:

• Ownership Transparency: Crypto platforms must disclose detailed information about their owners.
• Capital Requirements: A minimum capital threshold is imposed to ensure financial stability.
• Banking Separation: Banks wishing to offer crypto services must establish separate entities and obtain special licenses.

Deputy Chairman Armen Nurbekyan likened these measures to "financial hygiene," ensuring that only credible players operate in the market. Interestingly, investment consultancies face lighter rules—though Nurbekyan warned that client account mismanagement won’t be tolerated.

How Will Armenian Banks Handle Crypto?

Galstyan made it clear that banks will decide their crypto involvement based on risk appetite. "If crypto enters the banking system with no clear origin—say, from missile sales in Syria or organ trafficking in Ukraine—how can a bank take that risk?" he asked rhetorically. His point? Banks must develop robust risk-assessment frameworks to handle crypto responsibly.

This cautious yet open-minded approach could position Armenia as a regional leader in crypto regulation. By requiring proof of asset origins, the CBA aims to prevent illicit flows while allowing legitimate crypto activity to thrive.

What’s Next for Armenia’s Crypto Market?

With the law now in force, the CBA is drafting supplementary regulations. A public consultation phase is already underway, signaling transparency in the process. Analysts at BTCC suggest that Armenia’s framework could attract crypto businesses seeking a regulated yet innovation-friendly environment.

One thing’s certain: Armenia isn’t rushing into crypto blindly. As Galstyan put it, "Different phenomena require different approaches." Whether this strategy pays off remains to be seen, but for now, pragmatism reigns supreme.

FAQs: Armenia’s Crypto Regulation

What is Armenia’s stance on cryptocurrency?

Armenia’s Central Bank advocates a pragmatic approach, balancing innovation with risk mitigation. The country recently enacted the "On Crypto Assets" law to regulate the sector.

Can Armenian banks work with crypto holders?

Yes, but banks must assess risks and verify the origin of crypto assets. They may require separate licenses for crypto-related services.

What are the key rules under Armenia’s new crypto law?

The law mandates transparency in ownership, minimum capital requirements, and separate licensing for banks offering crypto services.

How does Armenia plan to prevent illicit crypto flows?

By enforcing strict disclosure rules and requiring proof of asset origins, Armenia aims to curb illegal activities while fostering legitimate crypto use.