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Armenia’s Deputy Prime Minister Mher Grigoryan confirmed in a parliamentary session that the country will prohibit direct cash-to-cryptocurrency exchanges beginning January 1, 2026, a move the government says will combat money laundering but that industry leaders warn could devastate local crypto businesses.
However, the proposal has already sparked strong dissent from the local crypto sector.
During a parliamentary session, Deputy Prime Minister Mher Grigoryan affirmed that the executive branch supports the cash-crypto trade ban. He responded to inquiries about how the ban would impact crypto firms, saying the government’s objective is not to suppress cryptocurrencies, but to force crypto conversions through transparent, traceable channels.
Grigoryan stated:
“We do not intend to limit the circulation of digital currencies in the economy. Our objective is to identify owners and cut off routes for illicit, anonymous flows.”
He argued that without restrictions on cash-based crypto purchases, anonymity remains too easy, making tax evasion and illicit transfers possible.
According to sources, the cash-crypto trade ban will disallow fiat cash injections in crypto transactions; instead, conversions must occur via bank transfers or digital payments.
Armenia recently passed its first comprehensive Law on Crypto Assets, which came into force July 4, 2025. The law mandates licensing for crypto platforms, disclosure of ownership, and regulation of crypto services.
When drafting the law, legislators included a clause that tasks the Central Bank with introducing measures against cash-based crypto activity, slated to begin January 1, 2026.
In debates on the draft law, officials have cited alignment with EU standards, especially the Markets in Crypto-Assets (MiCA) framework, and the goal of “financial hygiene” in crypto markets.
Under the new regime, banks will not be allowed to offer crypto services via their existing licenses. Instead, they must spin off separate licensed entities.
The announcement of a cash-crypto trade ban has drawn sharp criticism. Many operators see it as a de facto suffocation of small-scale crypto businesses. Eduard Avetisyan, founder of Bitcoin Armenia, warned that the move could eliminate many existing crypto firms:
“In other words, companies that operate within legal limits … cannot have a bank account … therefore cannot expand.”
Critics argue the ban undermines inclusion, particularly for underbanked individuals who rely on cash. Banning cash-to-crypto conversions could push activity into informal or underground channels.
Some warn of legal uncertainties in enforcement, compliance burdens, and stifling innovation in Armenia’s nascent crypto space.
The cash-crypto trade ban is expected to go live January 1, 2026, aligned with the implementation of sub-regulations under the new crypto law.
In the coming months, the Central Bank of Armenia will publish detailed guidelines and requirements for exchanges, banks, and crypto service providers.
Crypto firms in Armenia must adapt their business models, ensure compliance with KYC/AML rules, and prepare for a cashless conversion environment in crypto trading.
Some legal voices are calling for exemptions or flexibility: especially for remittances, cross-border crypto usage, and small-scale users—to soften the effect of the cash-crypto trade ban.
If Armenia enforces its cash-crypto trade ban as planned, it would become one of the first jurisdictions to completely forbid cash-to-crypto conversions (while not banning crypto itself). The approach may influence other countries grappling with balancing innovation against financial crime risk.
The move underscores a broader global trend: regulators pushing crypto markets into the same legal frameworks as traditional finance. Yet the tension remains: how to regulate without stifling growth.
For Armenia’s crypto sector, the next year is pivotal. Adapting to a post cash era may separate firms that can conform from those forced to exit or operate underground. Stakeholders will watch closely whether enforcement respects proportionality, safeguards innovation, and keeps crypto accessible.
