Central Bank cementing everything for security, but  losing investor  interest - expert on Armenian crypto regulation

ArmInfo.Armenia generally needs regulation in the cryptoasset sector, but we would like it to be primarily driven by local players and make the framework more liberal for international players. Andranik Togramadzhian, co-founder of the National Center for Digital Technologies of Armenia and CEO of Payin,  shared this viewpoint  during a panel discussion on "Blockchain and Smart Contracts.  Tokenization. Cryptoassets," held as part of the  International PLUS Forum FinnoWay Armenia 2025. 

He noted in this regard that the regulation applied by the Central Bank, in line with European standards, is quite strict and restrict cash turnover. "In  Armenia, the entire industry operates on a non-cash basis, whereas in Europe, cash transactions are possible, even if they operate with  some restrictions," the expert noted.

He clarified that Armenia adopted a law on crypto assets earlier this  year, and the final bylaws are currently being drafted, with the  licensing process beginning early next year. According to  Togramadzhian, the industry will adopt a modified format, with new  players emerging, and the old ones-those operating in the traditional  manner-will either transform or disappear.

In this regard, he cited the example of more lenient and flexible  regulations applied in neighboring Georgia, Singapore, the UAE, a  number of Latin American countries, and offshore jurisdictions.

"The Central Bank chose the European model, designed for the large  Eurozone market with a corresponding volume of money supply. In  Armenia, money supply is essentially incomparable to those  Eurometrics, and the current regulations are not so acceptable for  many local startups and teams, as they would have to either change or  leave. And for international players, it's of little interest at  all," the expert noted.

Referring to backstage conversations with representatives of  international exchanges and their feedback, Togramadzhian noted that  the current criteria for entering the Armenian market are of little  interest.  "Because by going through virtually the same regulations  and obtaining a license here, you don't get the large local market  that other countries can offer," he said. According to Togramadzhian,  with the new regulations, the formation of a shadow segment is  inevitable. To make international investors think twice and  understand that entering the Armenian market, which can, even during  a war, interact with the Russian Federation, Europe, and the United  States, requires more lenient approaches. "Investors need to  understand that, in addition to these 'bridges,' they receive fairly  comfortable conditions for their business here," he noted.

The extremely conservative regulations applied by the Central Bank  cement everything for security, but at the same time, they fail to  attract many international investors to work in the Armenian market  and launch partnership projects.  "In my humble or immodest estimate,  I can hardly imagine that next year, when regulation is launched,  there will be a large influx of companies wanting to operate here  beyond one or two local and a few international players," he said.

Togramadzhian noted that the Armenian cryptocurrency market has come  a long and important way, and that Armenia has a strong technical  background. However, in his opinion, this isn't always sufficient for  raising funds for projects or entering the global market. "I'd like  to be wrong, but I don't expect a major surge or boost with the  regulation," he emphasized.

Recall, at the end of May, the National Assembly of Armenia adopted a  bill regulating the cryptoasset sector. This bill is based on the  European Markets in Crypto-Assets Regulation (MiCA) and stipulates  that cryptoassets will not be used as a payment method, with the  exception of electronic money circulation. The bill emphasizes the  importance of requiring issuers to publish a White Paper, which  typically describes their purpose, technology, features, operating  principles, objectives, and technical specifications. Providing  services related to crypto assets will become a licensed activity.  Price manipulation and insider trading will be prohibited. It also  introduces a financial hygiene mechanism-monitoring the founders of  crypto companies and their sources of capital to reduce the risk of  money laundering.

Additionally, effective mechanisms will be created to protect client  interests, including procedures for preventing conflicts of interest,  receiving and reviewing complaints and claims from clients,  protecting client funds, rules of conduct, publishing necessary  information, and other transparency requirements.  These mechanisms  will allow clients to utilize the professional services provided,  obtain the necessary information for decision-making, contact a  financial ombudsman if necessary, and utilize other available means  to protect their interests.