A government official says this will help prevent anonymous transactions.
Armenian authorities have confirmed their plan to prohibit cash purchases of cryptocurrency in the country, starting from next year.
A representative of the executive power in Yerevan indicated the intention is not to curb crypto turnover, but rather prevent anonymous transactions.
The Armenian government remains determined to impose a ban on the exchange of fiat cash for cryptocurrency, scheduled to take effect in 2026.
Deputy Prime Minister Mher Grigoryan confirmed the cabinet’s official stance during parliamentary control in the National Assembly, Armenia’s unicameral legislature.
Grigoryan was responding to a question by Arman Yeghoyan, a member of the Civil Contract party’s faction in the parliament.
The lawmaker said he had been asked by several companies from the crypto sector to initiate a discussion on the adopted restrictions.
The businesses complained that these would complicate entrepreneurial activities in the industry, Sputnik Armenia reported on Wednesday. The online news outlet quoted Yeghoyan as stating:
“I am not speaking in my own interest. I, for example, don’t have any bitcoins.”
“No one can know whether you have them or not. Or, say, whether I have them,” Grigoryan countered.
He emphasized that the government does not want to restrict the circulation of digital currencies in the country’s economy, but noted that the point is to identify their owners.
Without proper identification, risks of tax evasion arise, the deputy premier elaborated, adding that it will be impossible to trace the movement of anonymous crypto assets.
Digital currency owners should be known to the tax authorities, Grigoryan added, remarking that different branches of the government have already agreed on that.
The Armenian parliament adopted a law “On Crypto Assets” at the end of May, this year, in a move signaling the Caucasian nation’s willingness to regulate, not ban digital currencies like Bitcoin.
In accordance with the new legislation, entities issuing or trading cryptocurrencies and tokens are obliged to disclose their owners to the Central Bank of Armenia (CBA) and meet minimum capital requirements.
Lawmakers approved the legal framework after the cabinet of Prime Minister Nikol Pashinyan indicated it wants to introduce “financial hygiene” to the sector in terms of ownership and sources of capital, as previously reported by Cryptopolitan.
The government also wanted to allow traditional financial institutions to provide crypto-related services, highlighting that Armenian banks have been showing interest in this business.
In April, CBA Deputy Governor Armen Nurbekyan explained the ultimate goal is to create uniform rules for crypto assets and operations with them. With the new law, the authorities in Yerevan also aim to ensure the rights of investors and consumers are protected.
Previous regulations were limited to setting standards only for crypto exchange offices, he noted, quoted by the News.am agency. The latest provisions cover a wider range of entities dealing with crypto, the central bank executive emphasized.
Last month, his superior, Chairman of the CBA Martin Galstyan, warned that cryptocurrencies carry inherent risks as they are based on new technologies. Among them, he listed the potential to conceal financial flows for illicit purposes.
Speaking at a meeting with members of the Armenian parliament, the governor stressed, however, on the need for a pragmatic regulatory approach. The head of the monetary authority urged commercial banks to learn to “rationally manage this kind of risks.”
