Crypto-asset service providers
A crypto-asset is property based on encryption (cryptography) that has value or certifies a right, and that can be transferred and stored exclusively in electronic form through distributed ledger technology or other similar technologies.
In the Republic of Armenia, the public offering of crypto-assets, as well as the provision of services involving crypto-assets, is regulated and supervised by the Central Bank.
In the case of a public offering of crypto-assets, the issuer is obliged to publish a crypto-asset offering document, which contains all essential information about the issuer, the crypto-assets being offered, the underlying technology, and the risks associated with them. Prior to publication, the document must be submitted to the Central Bank.
Services involving crypto-assets may be provided only by legal entities registered and licensed by the Central Bank, and in cases provided for by law, by other licensed financial institutions (investment companies, investment fund managers, regulated market operators, central depositories, banks and payment and settlement organizations in relation to the issuance of electronic money tokens).*
The services subject to licensing include:
- operation of a crypto-asset trading platform;
- custody of crypto-assets;
- purchase and sale of crypto-assets on one’s own account;
- purchase and sale of crypto-assets on behalf of a client;
- receipt and transmission of orders for the execution of transactions involving crypto-assets;
- placement of crypto-assets;
- management of a portfolio of crypto-assets;
- provision of advice related to crypto-assets;
- transfer of crypto-assets;
- issuance of asset-referenced tokens.
Market Entry
The Central Bank establishes detailed requirements for crypto-asset service providers to enter the market, ensuring that service providers are specialized, prudent, and financially sound. These requirements aim to protect clients from potential risks and to promote the confidence of crypto-asset purchasers and customers in the crypto-asset market.
For the licensing of crypto-asset service providers, requirements are established regarding capital, corporate governance, technical and software infrastructure, internal procedures, and other criteria.
The main licensing requirements for crypto-asset service providers are:
- To register a legal entity with the Central Bank in the form of a joint-stock company or a limited liability company.
- To deposit the authorized share capital of the manager into an account opened with a bank operating in the territory of the Republic of Armenia that is not affiliated with the applicant.
- To obtain the Central Bank’s prior approval for the acquisition of a qualifying holding.
- In the case of certain services, to have a business plan covering the next three years of activity.
- To pay the annual state duty for each upcoming year.
Persons who, as of the date of entry into force of the Law “On Crypto-Assets” (04/07/2025), have been providing crypto-asset services within the territory of the Republic of Armenia must, by 31/01/2027, be registered and licensed by the Central Bank as a crypto-asset service provider. Otherwise, they must cease providing or offering such services.
Regulation