Armenia extends authorization for virtual currency transactions using cash

Yerevan authorities are extending a temporary exemption that allows Armenians to buy and sell cryptocurrencies with fiat currency.

Although certain restrictions apply, this move will give cryptocurrency platforms and their users in the country more time to comply with the country’s recently adopted regulations.

Armenians will be allowed to exchange crypto for cash in 2026

Local media revealed this week that Armenia will postpone its ban on the sale and purchase of virtual currencies for cash until next year. The government has already approved the necessary amendments to the new Law on Cryptoassets, which will be submitted to Parliament soon.

The authorities initially planned to ban cash transactions in virtual currency transactions immediately after the law came into force on July 4, 2025, but it was later decided to introduce a transition period before the ban came into force to allow businesses to adapt to the current regulations.

Sputnik Armenia recalled in a report on Thursday that crypto companies were given a full year to obtain a compulsory license from the country’s central bank. Platforms dealing with digital assets are therefore now free to process cash orders until July 2026, although they are not without restrictions.

The value of any individual transaction may not exceed 300,000 Armenian Drams, or $785 as of this writing. Additionally, the selling entity is responsible for properly identifying customers and keeping complete records of all transactions.

During the interim period, the Central Bank of Armenia (CBA) retains the power to check the compliance of market participants at any time. The news agency noted that this extension concerns the many exchange offices operating in Armenia that continue to accept cash for crypto transactions.

Armenia on path to regulated crypto market

Armenian authorities have taken steps this year to clean up the country’s cryptocurrency space. The Digital Assets Bill was finalized in February, submitted to parliament in April, and passed by lawmakers at the end of May.

This legal framework introduces regulations governing the trading of coins, the provision of related services, and market oversight. Ensuring investor protection and increasing confidence in the industry are also among the main goals.

Under this law, platforms operating on crypto assets, including exchanges and issuers, are required to disclose details about their owners and meet minimum capital requirements.

At the time this was proposed, Armenian media and officials described the need to improve the “financial hygiene” of the sector, with a particular focus on ownership and capital sources.

Another key feature of the law is that it allows commercial banks to offer cryptocurrency services, but only by establishing a separate legal entity and obtaining a dedicated license from financial authorities.

In April, CBA Vice President Armen Nurbekian said:

“With unified rules, Armenian banks, which have long been interested in this field, will also be able to officially offer crypto services.”

In September, his boss, central bank chairman Martin Galustian, suggested that the banking sector should learn how to manage the risks associated with decentralized digital currencies in order to make crypto services more accessible.

Armenia praises crypto growth and regulation

Like its South Caucasian neighbors such as Georgia, Armenia has seen the growth of its cryptocurrency sector in recent years, but has only recently moved to properly regulate it.

This week, Binance’s Marketing Manager for Central Asia and CIS Countries, Stanislav Delinok, highlighted Binance’s position as a regional leader in terms of crypto investments. Quoted by banking news outlet ArmBanks.am on Saturday, he said:

“Armenia is at the forefront of cryptocurrency development, integrating digital assets in different areas of life.”

The country ranks 14th on the Global Cryptocurrency Investment Index, he noted, noting that one in 10 residents of this small country of about 3 million people is already a user of the largest cryptocurrency exchange.

Kirill Khomyakov, Head of Market for Central Asia, Central and Eastern Europe, and Africa at Binance, added: “There is great potential for the development of the Armenian crypto ecosystem, and we look forward to the invaluable work that will make digital assets more understandable, secure and accessible.”