Cryptocurrency Regulation in Armenia. Taxation
Armenia has a Law “On Crypto-Assets” regulating the activities of cryptocurrency exchange services and other service providers, as well as the issuance and public offering of crypto-assets.
Let’s examine whether cryptocurrency transactions are legal, how cash payments are regulated, and what taxes individuals, individual entrepreneurs, and companies pay.
Are Cryptocurrencies Legal in Armenia
Individuals and legal entities can buy, sell, exchange, and hold cryptocurrency.
The main regulatory act in this area is the Law of the Republic of Armenia “On Crypto-Assets,” adopted on May 29, 2025, and entered into force on July 4, 2025.
The crypto-asset market is regulated and supervised by the Central Bank of the Republic of Armenia.
Can Cryptocurrency Be Used for Payment
Cryptocurrency is not an official means of payment in Armenia.
Using Bitcoin, USDT, and other ordinary crypto-assets to pay for goods, works, and services in Armenia is prohibited. An exception is provided for certain electronic money tokens.
At the same time, the purchase, sale, and exchange of cryptocurrency itself are permitted.
Licensing and Transitional Period
Crypto-asset service providers must undergo registration and licensing with the Central Bank of the Republic of Armenia.
A transitional period applies to companies and individual entrepreneurs that were already providing such services in Armenia when the law entered into force — July 4, 2025. They must obtain a license by January 31, 2027; otherwise, they are required to cease operations after that date.
Companies that were not operating with crypto-assets as of July 4, 2025, cannot take advantage of the transitional period and must obtain a license before commencing operations.
The right to operate during the transitional period does not mean that the provider already holds a license. The official clarification is published on the website of the Central Bank of the Republic of Armenia.
Regulation of Cash Transactions
As a general rule, payments for the purchase and sale of cryptocurrency must be made by cashless means.
Cash exchange is permitted only if all of the following conditions are met:
- the amount of a single transaction does not exceed AMD 300,000;
- the transaction is conducted with or through a crypto-asset service provider;
- the provider is included in the special list of the CBA;
- the customer has completed identification and identity verification.
Cash payments may only be made in Armenian drams. The purchase and sale of cryptocurrency for cash in US dollars, euros, rubles, or other foreign currencies is not permitted.
Transactions exceeding AMD 300,000 may only be conducted by cashless means. Splitting a single transaction into several cash payments in order to circumvent the limit is prohibited.
The current list of providers authorized to conduct cash transactions is published on the official website of the CBA.
Inclusion in this list confirms the provider’s right to conduct cash transactions but does not mean that it holds a license.
Customer Identification and AML/KYC
Crypto-asset service providers conduct customer identification and apply measures to prevent money laundering and terrorist financing.
As part of the verification process, the following may be requested:
- an identity document;
- a selfie or biometric verification;
- confirmation of ownership of a bank account, card, or electronic wallet;
- information about the purpose of the transaction and the source of funds;
- legal entity documents and information about its beneficial owners.
The provider may also conduct sanctions screening and verify the source of cryptocurrency using blockchain analytics tools.
A transaction may be refused if a third party’s payment instrument is used, the required documents are not provided, or there is an elevated AML risk.
Taxation of Cryptocurrency Transactions
Tax rules depend on the status of the participant in the transaction and the type of crypto-asset.
Taxes for Individuals
Income received by an individual from the sale of ordinary fungible crypto-assets is not subject to income tax.
Such assets include:
- Bitcoin;
- USDT;
- USDC;
- Ethereum;
- Litecoin and other fungible crypto-assets.
If an individual purchased cryptocurrency for AMD 4,000,000 and sold it for AMD 5,000,000, no income tax is charged on the resulting difference.
Different rules apply to the sale of:
- NFTs and other non-fungible crypto-assets;
- crypto-assets received as a reward for mining, maintaining a distributed ledger, or validating transactions.
Income from the sale of such assets is subject to income tax at a rate of 1% of the total sale amount, rather than the profit.
For example, if cryptocurrency obtained through mining is sold for AMD 5,000,000, the tax will amount to AMD 50,000.
The absence of tax does not always exempt a person from the obligation to report the income received in the annual tax return. It is necessary to keep transaction history and documents confirming the purchase and sale of cryptocurrency.
Taxes for Legal Entities
A legal entity’s profit from the sale of cryptocurrency is subject to profit tax at a rate of 18%.
The tax is calculated on the positive difference between the income from the sale and the documented acquisition cost of the cryptocurrency, taking into account allowable expenses.
For example, a company purchased cryptocurrency for AMD 10,000,000 and sold it for AMD 12,000,000. The taxable profit will be AMD 2,000,000, and the profit tax will be AMD 360,000.
If the cryptocurrency is sold for less than its acquisition cost, the resulting loss does not reduce the company’s other taxable profit.
For example, if the cryptocurrency was purchased for AMD 10,000,000 and sold for AMD 8,000,000, the difference of AMD 2,000,000 is not recognized as a deductible expense.
The sale of cryptocurrency itself is exempt from VAT. However, services related to crypto-assets may be subject to VAT separately.
Taxes for Individual Entrepreneurs
If an individual entrepreneur conducts transactions as part of their business activities and applies the general taxation system, profit is taxed at a rate of 23%.
Crypto-asset service providers cannot apply the micro-enterprise regime or turnover tax and operate under the general taxation system.
The sale of cryptocurrency itself is exempt from VAT, but the provider’s services may be subject to VAT.
Legal entities and individual entrepreneurs must retain documents confirming:
- the cost and date of acquisition of the cryptocurrency;
- the amount and date of sale;
- fees;
- the exchange rate used for conversion;
- bank payments;
- wallet addresses and transaction identifiers.
These tax rules are established in Law HO-175-N on Amendments to the Tax Code of the Republic of Armenia.
How to Check the Legal Status of an Exchange Service
Before conducting a transaction:
- Check the full name of the legal entity and the office address.
- Check the official contact details and information on the website.
- For cash exchanges, find the provider on the CBA list.
- Make sure that the service conducts mandatory verification.
- Do not transfer money from a third party’s account or card.
- Do not agree to cash payments in foreign currency or for an amount exceeding AMD 300,000.
An offer to conduct an anonymous cash exchange, accept cash in US dollars, or circumvent the established limit should raise concerns.
CryptoInvest Status
CryptoInvest has been providing cryptocurrency buying, selling, and exchange services in Armenia since 2019.
The service’s legal entity — EDIK-NORIK LLC — is included in the official list of crypto-asset service providers of the Central Bank of the Republic of Armenia. This allows it to conduct cash transactions in Armenian drams within the limit established by law.
CryptoInvest conducts mandatory customer identification and works with individuals, legal entities, and individual entrepreneurs. Exchange services are available online and at the office in Yerevan.
Frequently Asked Questions
Is Cryptocurrency Prohibited in Armenia?
No. Cryptocurrency can be bought, sold, exchanged, and held. However, using ordinary crypto-assets to pay for goods and services is prohibited.
Can You Buy Cryptocurrency with Cash?
Yes, if the transaction amount does not exceed AMD 300,000, the customer has completed identification, and the provider is included in the special list of the CBA. Payment is made only in Armenian drams.
What Tax Does an Individual Pay?
The sale of Bitcoin, USDT, Ethereum, and other fungible crypto-assets is not subject to income tax. The sale of NFTs and cryptocurrency received from mining or transaction validation is taxed at a rate of 1% of the sale amount.
What Taxes Do Companies and Individual Entrepreneurs Pay?
A legal entity pays 18% on profit, while an individual entrepreneur under the general taxation system pays 23% on profit. The sale of cryptocurrency itself is exempt from VAT.
Before conducting a transaction, check the legal entity, official address, provider status, and exchange terms.