Armenia is preparing to outlaw cash-for-crypto transactions beginning in 2026, a decision officials say is about transparency, not suppression.
The reform is part of a broader effort to strengthen oversight of digital assets while keeping the country attractive to investors.
Deputy Prime Minister Mher Grigoryan explained in parliament that regulators want visibility into who actually owns cryptocurrencies. Without that, he argued, tax evasion and illicit fund flows become nearly impossible to track. The measure follows rising concerns among lawmakers that anonymous deals could undermine the credibility of the nation’s financial system.
Pushback From Industry
Some companies in Armenia’s crypto sector have already voiced frustration, warning that the policy may complicate business activity. Lawmaker Arman Yeghoyan, who raised their concerns in the National Assembly, said many fear the ban will make the market less flexible. Grigoryan pushed back, emphasizing that the intention isn’t to halt crypto activity but to align it with the same transparency expected in traditional finance.
A Regulated Path Forward
The move builds on the country’s recently enacted Crypto Assets Law, which forces issuers and exchanges to disclose ownership to the Central Bank of Armenia and maintain minimum capital reserves. Rather than banning digital assets outright, the framework was designed to bring “financial hygiene” to the space, ensuring that both banks and startups can participate under uniform rules.
Prime Minister Nikol Pashinyan’s government has also highlighted the benefits of allowing banks to expand into crypto services, signaling that authorities want regulation to support innovation, not stifle it.
Balancing Innovation With Risk
Still, regulators remain cautious. Central Bank Governor Martin Galstyan has repeatedly warned that cryptocurrencies can obscure financial flows and carry potential for abuse. While he advocates for pragmatism rather than prohibition, he has urged banks to prepare for these risks with strong compliance systems.
With the new law and the 2026 cash ban, Armenia is positioning itself as a crypto-friendly but tightly monitored market. Officials hope the approach will encourage responsible investment while deterring shadow activity — a balancing act many countries are still struggling to achieve.
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