Central Bank of Armenia on Digital Assets in 2025

• Central Bank of Armenia emphasized the need for a balanced approach to crypto regulation, balancing risk and reward.
• Galstyan emphasized that the problem lies in how cryptocurrencies are used, not in their neutrality.
• Armenia enacted its first comprehensive cryptocurrency legislation, “On Crypto Assets,” in May.
• Armenia’s embrace of cryptocurrency reflects a global trend where nations grapple with how to regulate this rapidly growing sector.

This week, the Central Bank of Armenia became the center of debate after its governor, Martin Galstyan, shared his insights on crypto regulation during a parliamentary session. His remarks highlighted both the dangers and opportunities of digital assets, urging a balanced approach that fosters innovation while safeguarding the country’s financial system.

In a fast-evolving financial landscape, Armenia faces the pressing challenge of regulating crypto in a way that promotes economic growth but avoids the risks associated with money laundering, illicit trade, and unregulated speculation. The statements from the Central Bank of Armenia have therefore sparked serious discussions across government institutions, the banking sector, and the crypto community.

A Pragmatic Approach to Crypto

Governor Martin Galstyan’s message was clear: banks must be practical when dealing with crypto. He emphasized that institutions should not ignore the growing role of digital assets but must instead learn how to manage the associated risks responsibly.

“Crypto technology itself is neutral,” Galstyan explained. “The problem lies in how it is used.” He pointed out that criminals can exploit cryptocurrencies to hide money flows, fund illegal trade, or bypass traditional financial safeguards. Yet, banning or demonizing crypto outright would be counterproductive. Instead, the governor urged for a measured, practical approach that allows the technology to evolve without threatening financial stability. By recognizing the dual nature of crypto—its potential for innovation as well as its susceptibility to abuse—the Central Bank of Armenia hopes to lay the foundation for policies that balance risk and reward.

Lawmakers Push for Clarity

During the parliamentary debate, lawmakers pressed the governor on whether the central bank truly supports cryptocurrency adoption in Armenia. One member asked bluntly: Does the central bank trust crypto, and does it see a future for digital assets in the nation?

Galstyan’s answer was nuanced. He reminded lawmakers that people often confuse cryptocurrency, artificial intelligence, and general innovation, treating them as though they are the same. In reality, each area is unique and requires its own regulatory framework. “It is dangerous to be either overly enthusiastic or overly dismissive,” he said.

Instead, Armenia must aim for balance: use crypto wisely, reduce risks, and still create room for growth. This approach, Galstyan suggested, is the only way to harness crypto’s benefits without falling victim to its pitfalls.

The Role of Armenia’s Banks

The Central Bank of Armenia plays a supervisory role, but commercial banks are the ones that interact directly with customers. Galstyan reminded parliament that the central bank does not handle individuals’ money but oversees the broader system, ensuring banks act responsibly. When asked whether Armenian banks would welcome crypto holders as clients, Galstyan was cautious. He stressed that every institution must conduct its own risk analysis. If a bank cannot verify the origin of a client’s digital assets, it should not accept them.

For instance, Galstyan gave an example: imagine crypto funds entering the system without any clarity on whether they were tied to missile sales in Syria or organ trafficking in Ukraine. No responsible financial institution would want to carry that risk. Banks, he said, need to strengthen their ability to evaluate and mitigate such risks. Only by doing so can crypto services become both safer and more accessible for ordinary Armenians.

A Step Toward Regulation

Earlier this year, Armenia took a bold step forward by enacting its first comprehensive cryptocurrency legislation. The new law, officially titled “On Crypto Assets,” came into effect on July 4 after being introduced in April and passed in May. The legislation sets clear rules for trading platforms, service providers, and market supervision. Its primary goals are to:

1. Protect investors by ensuring transparency and accountability.
2. Increase trust in crypto through strict oversight.
3. Create a fair market environment that fosters innovation while maintaining stability.

Among its provisions, the law requires crypto exchanges and stablecoin issuers to disclose detailed ownership information and maintain a minimum level of capital. This ensures that only financially stable players operate within Armenia’s crypto market. Deputy Chairman of the Central Bank of Armenia, Armen Nurbekyan, explained that these measures were designed to promote “financial hygiene” in the industry, eliminating bad actors and preventing financial crimes.

A Shift in Bank Involvement

Interestingly, the first draft of the law allowed commercial banks to directly offer crypto services to their clients. However, lawmakers later revised this provision. Under the final version, banks can only participate in the crypto sector if they establish separate entities that obtain licenses from the central bank. This adjustment reflects Armenia’s cautious stance. By separating crypto activities from traditional banking operations, regulators aim to reduce systemic risks and protect depositors’ funds.

At the same time, the law provides softer requirements for investment consultancies, though authorities have promised strict oversight for firms managing client accounts. The aim is to encourage innovation while ensuring that investors are not exposed to reckless practices. Currently, the Central Bank of Armenia is drafting detailed secondary regulations to guide the implementation of this law. Public consultations are underway, giving industry stakeholders a chance to provide input.

Crypto in Armenia

Armenia’s embrace of cryptocurrency reflects a global trend where nations are grappling with how to regulate this rapidly growing sector. For Armenia, the stakes are high: crypto could open new doors for investment, job creation, and technological innovation. At the same time, weak oversight could expose the country to financial instability and reputational risks. Governor Galstyan’s emphasis on practicality highlights Armenia’s position in the middle ground—neither rejecting crypto nor embracing it blindly. The government appears committed to establishing a regulatory framework that nurtures the positive aspects of digital finance while guarding against threats.

Armenia’s debate over cryptocurrency regulation is still unfolding, but one thing is clear: the nation does not intend to stand on the sidelines. Through the efforts of the Central Bank of Armenia, lawmakers, and financial institutions, the country is crafting a path that seeks to merge innovation with responsibility. Governor Martin Galstyan’s call for pragmatism serves as a reminder that crypto is neither a miracle solution nor an automatic threat. Instead, it is a tool—powerful, risky, and full of possibilities. If handled wisely, crypto could help Armenia modernize its financial system and create new opportunities for its people. If mishandled, it could expose the country to dangers it cannot afford. The coming months will reveal how Armenia’s new crypto law takes shape in practice, and whether the balance Galstyan envisions can truly be achieved. For now, the message is clear: Armenia is choosing cautious progress, not reckless enthusiasm.

Disclaimer: CryptopianNews shares this for learning and info only. It’s not meant to be financial or investment advice. Crypto markets change a lot and move quickly. Investing in them can be risky. You should always look into things yourself. Talk to a trained financial advisor before making any choices about investing.