Armenia to Ban Cash Cryptocurrency Purchases by 2026

Armenia will ban cash cryptocurrency purchases starting January 1, 2026, confirmed by Deputy Prime Minister Mher Grigoryan, under the new Law on Cryptoassets to enhance fiscal transparency.

The ban signals Armenia’s push for crypto regulation, impacting market practices. Institutional interest could rise, with compliance mechanisms like Chainalysis enhancing transaction traceability.

Armenia plans to implement a ban on cash-based cryptocurrency purchases starting 2026, a measure aimed at increasing fiscal transparency and tackling anti-money laundering (AML) concerns. This initiative is part of the new “Law on Cryptoassets”, set to go into effect in July 2025.

Deputy Prime Minister Mher Grigoryan is leading the charge for this policy, underscoring its crucial role in improving economic oversight. According to local news reports, the Central Bank of Armenia will regulate the sector, ensuring that all crypto purchases are cashless and traceable by 2026.

“Armenia does not oppose the encouragement and advancement of digital assets. Digital assets represent the future, and eventually, currency will transform into a digital asset. However, the challenge lies in the degree to which the owner of the asset can be identified. … When a transaction is conducted cashlessly, it is recorded in the fiscal records… Conversely, when transactions are conducted in cash, it becomes impossible to identify the seller, buyer, or the flow of funds.” — Mher Grigoryan, Deputy Prime Minister of Armenia

Industry and Regulatory Adaptations

The immediate effects include a potential shift in how digital assets are acquired in Armenia. Industries and traders must adapt to cashless transactions, which could impact exchanges and wallet providers. Compliance tools like Chainalysis may see increased utilization for transaction monitoring.

This policy aims to bolster fiscal discipline and regulatory transparency, positioning Armenia as a regional fintech hub. Through this strategic regulatory shift, Armenia hopes to attract institutional players while fostering innovation and maintaining effective oversight.

Aligning with Global Standards

Other countries have implemented similar restrictions, often driving a shift towards regulated exchanges. These measures align with global AML standards, promoting fiscal transparency while minimizing the risks associated with anonymous transactions.

Potential outcomes may reshape Armenia’s financial landscape, with Armenians experiencing more robust regulatory frameworks but facing challenges in cash fluidity. Historical trends suggest increased friction in fiat on/off-ramping, necessitating policy adjustments along the way.