Published Date: 28/March/2025 Read Time: 7 min
Armenia is emerging as a strategic location for crypto businesses due to its relatively open regulatory environment and lack of strict enforcement against crypto-related transactions. Despite the absence of comprehensive regulations, the country provides opportunities for various crypto activities, including P2P trading, exchanges, and crypto payment processing.
In this article, we will explore the legal aspects of operating a crypto business in Armenia, the current market players, and the potential future of crypto regulation in the country.
The Crypto Business Landscape in Armenia
Currently, Armenia does not have a well-defined legal framework for cryptocurrencies. Unlike some neighboring countries that have imposed restrictions,
the Armenian government has not outright banned crypto trading or related businesses. While there is no direct legislation supporting crypto activities, there are also no severe restrictions, allowing entrepreneurs to engage in crypto transactions within a legal gray area.
What Crypto-Related Activities Are Possible in Armenia?
Despite the lack of formal legislation, several crypto-related activities are actively conducted in Armenia:
1. P2P Trading
Peer-to-peer (P2P) trading is one of the most common ways to buy and sell cryptocurrencies in Armenia. Platforms like Binance P2P, Bybit, and Fastex facilitate crypto-to-fiat transactions without involving banks directly. Many individuals operate in this space by buying and selling crypto using cash or transferring funds via Armenian bank accounts.
2. Crypto Exchanges
While Armenia does not have locally licensed cryptocurrency exchanges, international platforms like Binance, Bybit, and Fastex have a presence in the country. Armenian users can freely access these platforms, trade cryptocurrencies, and withdraw fiat money to local banks or payment providers.
3. Crypto Terminals and ATMs
Crypto ATMs and POS terminals are starting to appear in Armenia, allowing users to buy and sell crypto with cash. These terminals provide a convenient way for traders and investors to enter the market without relying on online transactions.
4. Crypto Marketplaces
Armenia is home to Fastex, a growing crypto marketplace that offers trading and financial services related to blockchain technology. This platform is gaining traction as one of the key players in the local crypto ecosystem.
5. Using Crypto for International Payments
Armenian companies can leverage cryptocurrency to facilitate international transactions. By registering a legal entity and exchanging crypto in a regulated manner, businesses can send fiat payments abroad, making Armenia an attractive option for payment processing companies.
How to Operate a Crypto Business Legally in Armenia
Although Armenia lacks specific regulations for crypto businesses, operating within the existing legal framework is possible by following these steps:
- 1. Register a Legal Entity – A crypto-related business must register as an LLC (Limited Liability Company) or other legal entity to conduct financial transactions.
- 2. Maintain a Cashier Book – Any company handling financial transactions must keep a record of cash flow, including fiat exchanges for crypto.
- 3. Comply with Tax Requirements – While there are no crypto-specific tax rules, businesses should report fiat earnings to avoid legal issues.
- 4. Work with Licensed Payment Providers – Although banks do not officially support crypto businesses, some payment providers facilitate transactions without issues.
- 5. Ensure Compliance with Anti-Money Laundering (AML) Practices – While Armenia does not enforce strict AML policies for crypto, businesses should maintain transparency to prevent future regulatory problems.
How Do Armenian Banks Handle Crypto Transactions?
Even though Armenian banks do not officially support crypto businesses, they generally do not block accounts that deal with moderate fiat transactions. Traders and businesses who primarily operate in cash have little to no issues when working within Armenia. Large-scale transactions may attract scrutiny, but as long as proper documentation is maintained, bank accounts usually remain active.
Future Crypto Regulations in Armenia
The Armenian government has signaled its intent to introduce regulations for the crypto industry. Recently, the Central Bank and internal police have presented proposed legal frameworks for discussion. While these regulations are still under review, they may include:
- Licensing requirements for crypto exchanges and P2P platforms
- Clear taxation policies for crypto transactions
- AML and KYC (Know Your Customer) guidelines for crypto businesses
Conclusion
Armenia presents a unique opportunity for crypto entrepreneurs due to its relatively open environment and lack of restrictive regulations. Businesses can engage in P2P trading, crypto exchanges, and payment processing with minimal interference. While banks do not officially support crypto businesses, they do not actively block transactions unless large sums are involved. However, with upcoming regulatory discussions, the crypto industry in Armenia may soon see a more structured legal framework.
For now, Armenia remains a crypto-friendly jurisdiction, making it an attractive destination for those looking to operate legally while benefiting from a flexible regulatory environment.
