In this article:
- Armenia’s crypto-asset legal framework
- How cryptocurrency is taxed
- CASP licensing and capital requirements
- AML/KYC and the Travel Rule
- Token classification and the Howey test
- Crypto mining and FEZ incentives
- Payment restrictions and legal tender
- Stablecoins, DeFi, and the Digital Dram
- High-tech sector benefits for blockchain companies
- Practical scenarios
- Frequently asked questions
Armenia adopted a comprehensive Law on Crypto-Assets (HO-159-N) on 29 May 2025, effective 4 July 2025, creating one of the region’s most structured regulatory frameworks for digital assets. Modeled on the EU’s MiCA regulation, the law establishes licensing requirements for crypto-asset service providers (CASPs), defines tax treatment for individuals and businesses, and integrates crypto activities into the country’s AML/CFT regime. The Central Bank of Armenia (CBA) issued its full implementing package — Regulations 7/01 through 7/05 — effective 31 January 2026.
This guide covers everything you need to know about cryptocurrency taxation, licensing, and compliance in Armenia as of April 2026, with all facts sourced from primary legislation and CBA regulations.
At a glance
| Core statute | Law on Crypto-Assets (HO-159-N), adopted 29.05.2025 |
| Regulator | Central Bank of Armenia (CBA) |
| Individual crypto gains | 0% tax on standard crypto-asset trading |
| Mining & staking rewards | 1% income tax on alienation |
| NFT alienation | 1% income tax |
| Corporate crypto profits | 18% profit tax |
| VAT on crypto alienation | Exempt (Art. 64) |
| Exchange license capital | AMD 70,000,000 (~$182K) |
| Transition deadline | Full CBA licensing by 31.01.2027 |
| Crypto as legal tender | No — payment with crypto is prohibited |
Armenia’s crypto-asset legal framework
The Law on Crypto-Assets defines a “crypto-asset” as property with inherent value or rights-certifying capabilities that can be transferred and stored exclusively through decentralized ledger technology. The definition covers utility tokens, payment tokens, and asset-referenced tokens, while explicitly excluding tokens that qualify as securities, derivatives, fund shares, or bank deposits under existing financial law.
The CBA is the sole supervisory authority. Any entity providing crypto-asset services in Armenia must be organized as an LLC or JSC and licensed by the CBA. Regulated services include operating a trading platform, custody, own-account dealing, client-account dealing, order reception and transmission, placement, portfolio management, advice, and transfer.
Commercial banks cannot provide crypto-asset services directly — they must establish, capitalize, and separately license an independent legal entity. Legacy operators active as of 4 July 2025 may continue during a grandfathering period but must achieve full CBA licensing by 31 January 2027. As of April 2026, 12 entities appear on the CBA’s published transitional list, including Coin Exchange, Skylabs Technologies, Bitcoin.am, Payin, and Bncex. No major international exchanges (Binance, Bybit) are registered.
How cryptocurrency is taxed in Armenia
Armenia’s Tax Code was amended on 29 May 2025 (HO-175-N) to create a clear, tiered tax regime for crypto-assets. The rates depend on who is trading and what type of asset is involved.
Individual retail trading — 0% capital gains
Non-entrepreneurial individuals pay no tax on gains from standard crypto-asset trading. Armenia’s territorial tax system also means that foreign-exchange activity by expats is generally not treated as Armenian-source income. This makes Armenia one of the most favorable jurisdictions in the region for individual crypto investors.
Mining, staking, and NFTs — 1% income tax
A reduced 1% income tax applies on alienation of: (a) crypto-assets automatically created as rewards for distributed-ledger maintenance or transaction validation (mining and staking); and (b) unique, non-fungible crypto-assets (NFTs). This rate applies under Tax Code Art. 150, Part 9.1.
Corporate and business-level trading — 18% profit tax
Legal entities and individuals whose trading crosses business-activity thresholds pay the standard 18% profit tax on crypto-derived profits. Importantly, crypto losses cannot be deducted against other business income (Art. 113). CASPs are also barred from simplified, turnover, or micro-enterprise tax regimes.
VAT treatment
The alienation of a crypto-asset itself is VAT-exempt under Art. 64. Service fees — exchange commissions, custody fees, brokerage charges — are standard taxable services subject to Armenia’s 20% VAT.
Valuation and record-keeping
Tax Code Art. 16.1 establishes that the initial value of a crypto-asset equals its acquisition price, determined from USD/EUR prices on government-approved exchanges and converted to AMD at the CBA’s official 16:00 FX rate. The exchange list is currently in draft (e-draft 10028, public discussion until 18 April 2026) and proposes eight exchanges: Binance, Bybit, OKX, Coinbase, Bitget, Kraken, Gate.io, and KuCoin.
Art. 55 confirms that blockchain transaction hashes, cryptographic signatures, and digital records are accepted as accounting documentation — a significant modernization for crypto businesses operating in Armenia.
| Taxpayer type | Asset type | Tax rate | Source |
|---|---|---|---|
| Individual (non-entrepreneur) | Standard crypto-assets | 0% | Art. 150 |
| Individual | Mining/staking rewards | 1% | Art. 150(9.1) |
| Individual | NFTs | 1% | Art. 150(9.1) |
| Legal entity / business trader | All crypto-assets | 18% | Arts. 113, 150 |
| Any | Alienation of crypto-asset | VAT exempt | Art. 64 |
| Any | CASP service fees | 20% VAT | Standard rate |
| FEZ mining operator | Mining profits | 0% profit tax | Art. 126(7) |
CASP licensing and capital requirements
The CBA’s implementing regulations (effective 31 January 2026) establish a tiered licensing framework based on the type of crypto-asset service provided. Foreign CASPs cannot serve Armenian customers remotely without a local license — there is no reverse-solicitation carve-out. Art. 21 requires foreign companies to operate through a subsidiary or branch established in Armenia, and Art. 22 requires CBA authorization for foreign branches.
| Minimum capital | USD approx. | Permitted services |
|---|---|---|
| AMD 10,000,000 | ~$26K | Advisory services only |
| AMD 20,000,000 | ~$52K | Order reception/transmission, placement, portfolio management, transfer |
| AMD 50,000,000 | ~$130K | Own-account dealing, custody |
| AMD 70,000,000 | ~$182K | Trading platform operation |
| AMD 200,000,000 | ~$520K | Asset-linked token issuance (plus reserve-based calculations) |
Licensing process
Establish an Armenian entity
Register an LLC or JSC in Armenia. Foreign companies must establish a local subsidiary or register a branch under Art. 22 with CBA authorization.
Deposit share capital
Deposit the required minimum capital into an Armenian bank account. The amount depends on the services you intend to provide (AMD 10M to AMD 200M).
Submit CBA application
File a licensing application per Regulation 7/01, including beneficial-owner information, business plan, AML/KYC procedures, and cybersecurity measures.
Manager registration and fit-and-proper testing
All CASP executives undergo fit-and-proper testing under Regulation 7/05 — education, experience, and criminal history review.
CBA review and license grant
The CBA reviews the application and grants the license. Processing time is not publicly specified. Legacy operators must complete this process by 31 January 2027.
Whitepaper and offer document requirements
Regulation 7/04 requires a mandatory offer document (whitepaper) for public crypto-asset offerings, disclosing technology, rights, risks, and conflicts. A small-offer exemption applies for offerings of AMD 20,000,000 (~$52K) or less within 12 months. Issuers who held offerings before 31 January 2026 must submit compliant documents to the CBA by 30 April 2026.
AML/KYC and the Travel Rule
CASPs are classified as reporting entities under the AML/CFT Law (HO-80-N, as amended by HO-180-N). They must implement customer due diligence (CDD/KYC), transaction monitoring, suspicious activity reporting, and retain records for five years.
Armenia has adopted a Travel Rule equivalent through AML Law Art. 20.1, requiring transfer-information duties for crypto-asset transfers. CBA Decision 12-N operationalizes this for transitional operators, mandating that CASPs collect and transmit transaction hashes, timestamps, counterparty wallet addresses, and customer identification data. Transfers missing required information must be rejected (Art. 27).
The CBA’s Financial Monitoring Center issued revised guidance in October 2025 that includes crypto-specific risk indicators — decentralized wallets, decentralized trading platforms, and mixers/tumblers are now flagged as elevated-risk factors.
Token classification and the Howey test
If a token meets the definition of a security, derivative, investment fund unit, or bank deposit under existing financial law, it falls outside the Crypto-Assets Law and is regulated under the Securities Market Law or Investment Funds Law instead.
The CBA applies its Official Clarification No. 3 (2012), which adopts the four-prong Howey test to determine if a token qualifies as an “investment agreement” (i.e., a security): (1) investment of money, (2) in a common enterprise, (3) with expectation of profits, (4) derived from efforts of others. Investment companies already licensed under securities law may provide CASP services with supplementary CBA authorization, and fund managers may provide crypto portfolio management and advice under the Investment Funds amendments (HO-176-N).
Convertible notes were formalized in Armenian law in May 2025 (Civil Code HO-114-N and JSC Law HO-116-N), providing legal infrastructure for security token offerings (STOs) through debt-to-equity token conversion.
Crypto mining and FEZ incentives
Government Decision 1591-N (October 2024) expressly authorizes “creation of crypto-assets (Bitcoins and other altcoins) online” as a main Free Economic Zone activity. The ECOS Hrazdan FEZ, established in 2018 in Kotayk with current capacity of approximately 60 MW scaling toward 200 MW, is Armenia’s primary industrial mining venue.
Profit tax
FEZ operators pay no profit tax on mining income under Tax Code Art. 126(7)
On alienation
Mining rewards taxed at 1% when sold (Art. 150(9.1)) — but profit tax exempt within FEZ
AMD/kWh (day)
Industrial electricity at 110kV, frozen for 2026. Night rate: 37.98 AMD/kWh
FEZ operators also receive VAT relief (Art. 64(2)(23)) and free-customs-zone treatment for imported hardware. However, real-presence conditions apply: core income-generating activities must be performed inside the FEZ, outsourcing of core activities is prohibited, and operators must meet business-plan expectations on qualified full-time staff and operating expenses. There is no fixed minimum investment threshold — the FEZ uses business-plan scrutiny and real-presence tests instead.
Payment restrictions and legal tender
The Armenian Dram (AMD) is the sole legal tender. Crypto-assets cannot be used as a means of payment in Armenia — this prohibition was enacted through a 2025 Civil Code amendment. The only exception is electronic money tokens issued under the Crypto-Assets Law.
All crypto acquisition and CASP service payments must be conducted non-cash. A temporary exception (expiring 1 January 2028) permits cash transactions of AMD 300,000 (~$780) or less, but only through a licensed CASP that verifies customer identity and records the transaction. No crypto-specific capital controls have been identified — Armenia’s general currency-regulation law is relatively liberal.
Stablecoins, DeFi, and the Digital Dram
Stablecoins currently fall under general CASP licensing at the highest capital tier (AMD 200,000,000 for issuance). Dedicated stablecoin regulation is an IMF structural benchmark with an April 2026 target, expected to mandate 1:1 reserve backing, audits, and redemption guarantees. Fiat-pegged tokens may also qualify as e-money tokens under CBA Regulation 16.02.
DeFi exists in a jurisdictional blind spot. The Crypto-Assets Law regulates centralized, identifiable legal entities (CASPs). Fully decentralized, non-custodial smart-contract protocols have no regulatory framework — there is no mechanism for enforcing KYC/AML on autonomous code or determining liability for smart-contract exploits.
Digital Dram (CBDC) remains at the research stage only. No binding legal act, formal pilot, or legal tender mandate has been issued. The CBA is conducting research and capacity-building, and EAEU reports classify Armenia at the “research stage.”
High-tech sector benefits for blockchain companies
Non-CASP blockchain and software companies may qualify for significant tax benefits under the High-Tech Sector Support Law (HO-498-N, effective 1 January 2025): a 60% income tax reimbursement for new and migrant employees, and a 1% turnover tax for smaller firms. Companies must demonstrate at least 90% of turnover from eligible high-tech activities under listed NACE codes (software development, IT consulting, systems management, databases).
Armenia’s Foreigners Law Reform (HO-11-N, effective 1 November 2026) creates new residence tracks including an entrepreneurial pathway requiring AMD 2,000,000 (~$5,200) in company capital or AMD 1,000,000 in business accounts/turnover. This is not crypto-specific, and Armenia does not offer a “digital nomad visa.”
Practical scenarios
Individual buying and selling Bitcoin
Anna, a resident of Armenia, buys 1 BTC and later sells at a profit. As a non-entrepreneur individual trading standard crypto-assets, she pays 0% tax on her gain. She does not need to file a return for this income but should keep transaction records in case her trading volume is later reclassified as business activity.
Company receiving crypto payment for services
An Armenian LLC receives crypto for software development services. It must recognize revenue at market value on the transaction date, calculate 18% profit tax on net income, and note that the crypto-asset itself cannot be used to pay suppliers in Armenia (payment prohibition). The alienation of the crypto-asset is VAT-exempt, but the underlying service may be subject to VAT depending on the client’s location.
Mining operation in the ECOS FEZ
A mining company operating within the Hrazdan FEZ pays 0% profit tax on mining income, receives VAT relief and free-customs-zone treatment for imported equipment, and benefits from frozen electricity rates (~42 AMD/kWh daytime at 110kV). Mining rewards are taxed at 1% upon alienation outside the FEZ profit-tax exemption. Real-presence conditions require actual on-ground operations.
Foreign company launching a crypto exchange
The company must establish an Armenian LLC or JSC (or register a branch), deposit AMD 70,000,000 (~$182K) in share capital at an Armenian bank, obtain a CBA license under Regulation 7/01, register managers under Reg 7/05, implement full AML/KYC under the amended AML Law, comply with the non-cash mandate, segregate client assets, and maintain 72-hour cybersecurity incident reporting. No reverse-solicitation is permitted — serving Armenian customers remotely without a license is prohibited.
Foreign blockchain developer relocating to Armenia
A developer forming an LLC with 90%+ turnover from software development can access the 60% income-tax reimbursement for migrant employees and the 1% turnover tax option. From November 2026, the new entrepreneurial residence track (AMD 2M in company capital) will be available. CASPs do not qualify for high-tech benefits — the company must be a software/development firm, not an exchange or custodian.
