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.
