Crypto Regulation Arrives in Armenia: Will It Boost Security or Block Innovation?

EXCLUSIVE INTERVIEW: Armenia has taken a big step toward regulating cryptocurrencies. Lawmakers have passed a new set of rules aimed at bringing order and safety to the fast-growing crypto market. But while the government says this move will protect the economy, some experts and industry leaders are worried it could hurt innovation and slow down progress in the tech world.

The changes were introduced by Armen Nurbekyan, Deputy Governor of the Central Bank of Armenia. He told parliament that the country needs a unified set of rules to oversee crypto-assets. Until now, the law only applied to crypto exchanges — companies that let people buy or sell digital coins. But under the new law, more businesses in the crypto world will be watched closely.

This includes companies that issue or trade cryptocurrencies. These businesses must now:

• Reveal who owns them.

• Meet minimum capital standards.

• Follow simpler and clearer rules for launching digital coins.

  
  

Nurbekyan stressed that the government is not interfering with the technology itself. Instead, the focus is on the financial side — preventing fraud, protecting investors, and avoiding risks like money laundering.

One key part of the law is the introduction of something called "financial hygiene." This means authorities will check where the money is coming from and who is behind the companies. According to the Central Bank, these rules will help Armenia stay safe from illegal financial activity.

Tech Leaders Push Back

But not everyone sees this as good news.

Artyom Harutyunyan, co-founder of the Web3 Armenia Foundation, told The Armenian Report that the law could do more harm than good. “This is a step back for the country’s technological progress,” he said.

Web3 Armenia, a non-profit group that supports blockchain and cryptocurrency innovation, released a strong statement criticizing the law. They say the government did not listen to experts in the field, even though they tried to share their ideas and concerns.

“The legislator ignored the voice of industry experts,” the group said. “At a time when many countries are encouraging innovation, Armenia is choosing to limit it.”

Web3 Armenia isn’t giving up. They say the crypto community in Armenia will keep pushing for a better, fairer legal system. Their goal is to help Armenia become a leading Web3 center — a place where blockchain, crypto, and digital innovation can thrive.

The foundation brings together developers, startups, and investors who believe in the power of Web3 technologies. They want to create jobs, attract foreign investment, and show the world what Armenian tech talent can do.

“We call on all stakeholders to join us,” their statement says. “Let’s raise this issue together, show the true potential of the sector, and build a future where everyone has equal opportunities.”

The debate over crypto regulation in Armenia reflects a larger global challenge: How do countries protect their economies while still encouraging innovation?

Armenia has a growing tech community, many of whom believe that blockchain and crypto could bring new jobs, smarter systems, and better connections with the global economy. But too much regulation, they say, could chase away startups and investors.

The new law is now in effect. What happens next depends on how it’s applied — and whether the government is open to working with the very people trying to build Armenia’s digital future.

One thing is clear: Armenia’s crypto journey is just beginning.