LEGAL UPDATE
August 2025
PART I. PROTECTION OF ECONOMIC COMPETITION SECTOR
1. On amendments and supplements to the law " On protection of economic competition".
2. On Amendments and Supplements to the Law " On Protection of Consumer Rights" .
3. On Amendments and supplements to the law "On trade and services".
4. On Amendments to the Law "On Trade and Services".
5. On determining the amounts of assets and revenues of participants in concentrations subject to
notification, the procedure for declaring concentrations and the form of the declaration, and
on repealing the Decision No. 322 of the Commission for Protection of Competition of
November 9, 2021.
PART II: HEALTH SECTOR
1. On Amendments and Supplements to the Law "On Medical Assistance and Services to the Population".
2. On establishing the application forms for an individual license and a transitional
individual license, the list of documents required for obtaining an individual
license and a transitional individual license, the forms of an individual
license and a transitional individual license, the grounds and procedure
for refusing to issue them, and the procedure for issuing and extending
the validity period.
3. On making additions and amendments to the Decision of the Government of the
Republic of Armenia of June 29, 2002 N 867 on approving the licensing
procedures for the production of medicines, pharmacy activities, medical
care and service, implementation of medical secondary vocational and higher
educational programs in the Republic of Armenia and the forms of licenses for
the implementation of the mentioned activities.
PART III. TAX SECTOR
1. On making additions and amendments to the Tax Code regarding tax audits and information on
means of identification.
PART IV. STATE REVENUE SECTOR
1. On making additions and amendments to the main concepts in the Law "On Combating Money
Laundering and the Financing of Terrorism".
2. On Amendments and Supplements to the Code of the Republic of Armenia on Administrative Offenses.
PART V. PRIVATE SECTOR
1. On making amendments to the Civil Code of the Republic of Armenia regarding shares.
2. On approving Regulation 10/41 "Procedure for Granting a Permit to Manage a Non-Public Investment Fund" and making amendments and supplements to a number of decisions of the Board of the Central Bank of the Republic of Armenia.
PART VI. CUSTOMS SECTOR
1. On the approval of the Agreement "On the Unified Customs Transit System between the Eurasian Economic Union and Third Party(ies)".
2. Resolution of the Council of the Eurasian Economic Commission “On the procedure for identifying electronic commerce products for which the possibility of returning them after purchase is provided”.
PART VII. WORKING SECTOR
1. On Amendments to the Resolution of the Government of the Republic of Armenia No. 1676 of December 20, 2012 "On Personalized Accounting for Income Tax, Profit Tax and Social Payments".
PART I. PROTECTION OF ECONOMIC COMPETITION SECTOR
(This section of legal updates includes legal updates related to the protection of economic competition for the month of August 2025)
1. On amendments and supplements to the law " On protection of economic competition"
Name of the legislative act
Law HO-205-N on Amendments and Supplements to the Law "On Protection of Economic Competition"
https://www.arlis.am/hy/acts/209456/latest
Change status:
This law was signed on July 14, 2025 and entered into force on August 1, 2025.
Which legislative act was amended by the adoption of the above-mentioned act:
As a result of the adoption of this Law, a change has been made to the Law "On Protection of Economic Competition"
What do the changes concern?
We would like to inform you that from August 1, 2025, amendments to the Law "On Protection of Economic Competition" will enter into force, which are of significant importance both in terms of content and legal and political aspects. The amendments define various manifestations of behavior that violate the interests of consumers, the prohibition of which is provided for in a new chapter of the law.
The Commission is recognized as the central body for the protection of consumer interests, with appropriate powers. A special procedure is also established for conducting proceedings on violations against consumer interests, including in the case of violation of the presentation of the price of goods, under a simplified procedure. Another innovation is that the Commission is given the opportunity to warn economic entities in case of conduct that harms the interests of consumers or the risk of it. In addition, the possibility of applying interim measures is envisaged in order to prevent the continuous or irreversible consequences of the violation. The law stipulates that for violations against the interests of consumers, a fine of up to 5 percent of the previous year’s revenue of the economic entity may be imposed.
The amendments also clarify the unobserved cases of concentration of certain transactions, as well as provide new definitions for certain concepts, such as base interest rates, consumer decision on the transaction, etc. The procedure for the Commission's inspections is also clarified, including the forms of protocols, attached materials, and the order of indicating objections.
Overall, these changes strengthen the position of the consumer in the context of the actions of economic entities and state bodies, and increase the role of the Commission as an institution that balances and controls the consumer market.
To supplement Article 3, Part 1 of the Law with the following content, paragraphs 11.1 and 11.2:
Article 3. Basic concepts and terms used in the law
11.1) Consumer protection: a set of measures implemented by the Commission to prevent, disrupt or eliminate such behavior, action or inaction, including their consequences, which harm or may harm the interests of consumers or groups of consumers of an indefinite scope.
11.2) Transactional decision: any decision of the consumer relating to the acquisition or possible acquisition of a product, the terms of payment, storage or disposal, or the exercise of contractual rights relating to the product, regardless of whether the consumer will acquire the product in question or not.
3) In paragraph 15, after the word "Competition", add the words "and the interests of consumers";
4) In point 17, after the words “unfair competition”, add the words “violations against the interests of consumers”.
5) Paragraph 32 shall be amended as follows: "
32) State aid granting body - a state body, as well as all bodies or organizations or officials authorized to provide state aid at the expense of public finances or public resources within the meaning of this Law, or in the case of state aid provided by a Government decision, the state body that submitted the draft Government decision on the provision of the relevant state aid for consideration by the Government. To supplement point 36 with the following content:
36) Base interest: interest payable at one and a half times the base rate of the banking interest rate set by the Central Bank.
Paragraph 11 of Part 3 of Article 12 of the Law shall be amended as follows:.
Old version.
11) failure to make payments stipulated in the settlement documents or contract by an economic entity purchasing agricultural products with a strong negotiating position, within 30 calendar days from the date of issuance of settlement documents by the supplier, or in the event that no settlement document is issued, from the date of delivery of the agricultural products;
New version.
11) Allowing a delay in the payment period established by Article 15.14 of the Law "On Trade and Services" by an economic entity purchasing agricultural products with a strong bargaining position, except if the economic entity purchasing agricultural products has allowed a delay of up to 30 calendar days following the payment period established by paying in full for the agricultural products and the base interest calculated for each day of delay.
In Article 13, Part 9, Paragraph 1 of the Law, amend it as follows:
Article 13. The concept of concentration of economic entities
9. The following are not considered to be concentrations:
Old version.
1) reorganizations of economic entities, actions or transactions specified in Part 1 of this Article, which take place between economic entities constituting a group of persons in accordance with Article 4 of this Law, except for the cases provided for in Points 8 and 9 of Part 1 of Article 4 of this Law, if the conditions of Article 14 of this Law are met.
New version.
1) reorganizations, actions or transactions of economic entities specified in Part 1 of this Article, which take place between economic entities constituting a group of persons on the grounds provided for in Points 1, 2 and 12 of Part 1 of Article 4 of this Law.
to be supplemented with the following content in point 5:
5) Acquisition of a share in the statutory (share) capital of an economic entity registered in the Republic of Armenia by an economic entity holding at least 20 percent of the statutory (share) capital of the same economic entity, if as a result of the transaction the share of the given economic entity does not constitute 50 percent of the statutory (share) capital of that economic entity.
To supplement the Law with Chapter 9.1 with the following content:
CHAPTER 9.1
VIOLATIONS AGAINST THE INTERESTS OF CONSUMERS
Article 26:1. Practices that violate the interests of consumers
1. Any behavior, action or inaction of a business entity that affects or may affect the interests of consumers or a group of consumers with an indefinite scope and contradicts this law, other laws, other normative legal acts or business circulation customs is considered a practice that violates the interests of consumers. violates the principles of good faith, honesty, fairness, truth and (or) impartiality towards consumers.
2. Practices that violate the interests of consumers are prohibited.
3. Any behavior, action or inaction that meets the characteristics of part 1 of this article is considered a practice that violates the interests of consumers, including:
1) Unfair commercial practices provided for by the Law "On Protection of Consumer Rights".
2) Advertising that violates the law, including unscrupulous or illegal or in violation of reliability or propriety;
3) Violation of the requirements submitted to the connection contracts concluded with consumers or to the general terms of the contract.
4) Violation of the requirements for the quality, quantity and other characteristics of the product.
5) Violation of the rules for presenting the price of a product defined by the Law "On Trade and Services".
4. The Commission evaluates the question of the presence of characteristics of practices that violate the interests of consumers.
5. This article does not apply to the behavior, action or inaction, as a result of which damage may be caused to the life, health, safety, public or state security of consumers or the environment.
6. The concepts used in point 2 of part 3 of this article are applied within the meaning of the Law on "Advertising".
Old version.
Article 27. Status and functions of the Commission
1. The Commission is an autonomous body that ensures freedom of economic activity, free economic competition, the necessary environment for the development of fair competition and entrepreneurship, and protects the interests of consumers.
New version.
Article 27. Status and functions of the Commission
1. The Commission is an autonomous body that ensures freedom of economic activity, free economic competition, the necessary environment for the development of fair competition and entrepreneurship, and protects the interests of consumers.
2. The Commission is the central body responsible for protecting consumer interests.
3. The Commission, as the central body responsible for protecting consumer interests, shall:
1) within the limits of its jurisdiction, cooperates with international organizations operating to protect the interests of consumers, based on international treaties of the Republic of Armenia and documents regulating sectoral cooperation;
2) cooperates, within the limits of its jurisdiction, with the bodies of foreign states implementing the protection of consumer interests, within the framework of which it is authorized to receive and provide them with information in accordance with the established procedure; 3) cooperates with other competent authorities."
To add a new part 4 to Article 49 of the Law with the following content:
Article 49. Conducting an inspection by the Commission
4. A protocol shall be drawn up in duplicate in the form established by the Commission based on the results of the inspection. Photographs, documents, electronic media and/or other materials may be attached to the inspection protocol, with a corresponding note made in the protocol. The protocol shall be signed by the person conducting the inspection and the economic entity, the employee selling goods, providing services and/or making monetary payments on behalf of the economic entity, or another representative of the economic entity. In the event of an objection to the inspection results, the person signing the protocol shall make a note of this in the protocol. One copy of the protocol shall be handed over to the economic entity.
Article 69 of the Law shall be supplemented with the following parts 2 and 3:
Article 69. Assessment of a notifiable concentration
2. In case the participants in the notifiable concentration assessment proceedings submit false, unreliable, incomplete or misleading information in the declaration or during the proceedings, or if the information requested by the Commission is not submitted, the Commission shall make a decision to dismiss the application as ineffective. 3. The Commission may decide to dismiss the concentration application at any stage of the proceedings.
Article 77 of the Law shall be supplemented with the following part 7:
Article 77. Reports of individuals and legal entities
7. The report will not be discussed if it contains apparently offensive expressions.
Article 32. Article 79 of the Law shall be supplemented with the following content, part 2.1:
Article 79. Consideration of grounds for initiating proceedings on an offense in the sector of economic competition
2.1. In the context of considering the grounds for initiating proceedings, in case of violation of the obligation to provide information to the Commission by economic entities, the Commission may consider the fact of the apparent presence of elements of a violation in the behavior or actions of the given economic entity confirmed and initiate proceedings.
To supplement the law with Article 82.1 with the following content:
Article 82.1. Giving a warning
1. In the event of apparent characteristics of conduct, action or inaction leading to the prevention, restriction, prohibition of economic competition or unfair competition or harm to the interests of consumers, or the existence of a threat thereof, a warning may be issued to economic entities, state bodies or their officials.
2. The details of the procedure for warning economic entities, state bodies or their officials in the event of apparent signs of conduct, action or inaction leading to the prevention, restriction, prohibition of economic competition or unfair competition or harm to the interests of consumers, or the threat thereof, shall be established by the Commission's Rules of Procedure.
3. If the apparent characteristics of the behavior, action or inaction leading to the prevention, restriction, prohibition of economic competition or unfair competition or harm to the interests of consumers described in the warning are not eliminated by economic entities, state bodies or their officials within the period set by the Commission, proceedings may be initiated..
To supplement the law with the following content in Article 83.1:
Article 83.1. Decision on the application of an interim measure
1. In order to prevent possible irreversible or serious consequences resulting from actions or conduct of state bodies and their officials that contain apparent features of anti-competitive agreements, abuse of dominant position and anti-competitive practices in relation to procurement, the Commission may adopt the following decisions on the application of interim measures:
1) to stop the conduct containing apparent elements of a violation until a final decision is made in the proceedings, restoring the situation that existed before the conduct containing apparent elements of a violation or in other ways specified by the Commission's decision;
2) suspend the process of concluding a contract or its operation as a result of the purchase.
2. A decision to impose an interim measure may be taken at any stage of the proceedings initiated by the Commission regarding an infringement and shall remain in force until the act concluding the proceedings enters into force.
3. The Commission may apply more than one interim measure within the same proceeding.
4. The decision to apply an interim measure shall enter into force upon its adoption and shall be subject to execution by the Enforcement Service in accordance with the procedure prescribed by the Law "On Enforcement of Judicial Acts".
5. The decision to apply an interim measure is submitted to the Enforcement Service by a letter from the Chairman of the Commission.
6. The decision to apply an interim measure shall be returned to the Enforcement Service on the basis of a letter from the Chairman of the Commission if:
1) the need to apply an interim measure has disappeared;
2) The decision of the Commission has been declared invalid or revoked.
7. The decision to impose an interim measure may be appealed. An appeal of the decision does not suspend its execution.
To supplement the Law with the following content in Chapter 17.1:
CHAPTER 17.1 PROCEEDINGS ON VIOLATIONS AGAINST CONSUMER INTERESTS
Article 91.1. Procedure for conducting proceedings regarding violations against the interests of
consumers
2.1. In case of violation of the obligation to provide information to the Commission within the framework of discussion of reasons for initiation of proceedings by business entities, the Commission may consider confirmed the fact of apparent presence of features of the offense in the behavior or actions of the given business entity and initiate proceedings.
After Article 82, the Law shall be supplemented with a new Article 82.1:
Article 82:1. Giving a warning
1. In the presence of apparent characteristics of behavior, action or inaction leading to the prevention, restriction, prohibition of economic competition or unfair competition or damage to the interests of consumers, or in the presence of a threat thereof, business entities, state bodies or their officials may be issued a warning.
2. The details of the procedure for warning business entities, state bodies or their officials in the presence of apparent features of behavior, action or inaction leading to the prevention, restriction, prohibition of economic competition or unfair competition or damage to consumers' interests, or the presence of a threat thereof, are defined by the working rules of the Commission.
3. Proceedings may be initiated in case of failure to eliminate the apparent characteristics of behavior, action or inaction leading to the prevention, restriction, prohibition of economic competition or unfair competition or damage to the interests of consumers, as described in the warning by economic entities, state bodies or their officials.
Name of the legislative act:
On Amendments to the Law "On State Duty" HO-165-N Law https://www.arlis.am/hy/acts/192563
Change Status:
This Law entered into force on July 1, 2025.
Which legislative act was amended by the adoption of the above-mentioned act:
As a result of the adoption of this Law, a change was made to the RA Law "On State Duty"
What do the changes concern?
According to the amendments, it is now envisaged that the fee for issuing an individual license in the healthcare sector will now be six thousand AMD, and the fee for a transitional individual license will be thirty thousand AMD. This law shall enter into force on July 1, 2025.
Section "2. HEALTH SECTOR" of Article 19 of the Law HO-186 of December 27, 1997 "On State Duty" shall be supplemented with the following content, sub-paragraphs 2.8.1-2.8.3:
"2.8.1. For obtaining an individual license (except for senior medical personnel holding military positions in the Armed Forces of the Republic of Armenia, the National Security Service, the Police and the Rescue Service operating under the Ministry of Internal Affairs) in the amount of six times the base duty.
2.8.2. For obtaining a transitional individual license (except for persons studying at institutions providing postgraduate military medical training) in the amount of three times the base duty. 2.8.3. For the extension of the validity period of the license specified in sub-clause
2.8.1, a state fee of the same amount as that provided for the given license shall be charged
2. On making an amendment to the Law of the Republic of Armenia on Licensing regarding individual licenses.
Name of the legislative act
On Amendments to the Law " On Licensing " HO-16 6 -N Law https://www.arlis.am/hy/acts/192562
Change status:
This Law entered into force on July 1, 2025.
Which legislative act was amended by the adoption of the above-mentioned act:
As a result of the adoption of this Law, a change has been made to the RA Law "On Licensing"
What do the changes concern?
According to the amendments, it is now envisaged that the performance of professional activities in the healthcare sector by an individual on the basis of an individual license or a transitional individual license is considered a licensing activity and is subject to licensing in accordance with the procedure provided for by the Law on Licensing. This Law shall enter into force on July 1, 2025.
"3. HEALTH SECTOR" of the table of part 2 of Article 43 of the Law HO-193 of May 30, 2001 "On Licensing " with the following content, point 3.1:
| 3.1 | Carrying out professional activities by a natural person on the basis of an individual license or a transitional individual license |
KM | - | - | - | - | O | - |
3. On establishing the procedure for professional monitoring of compliance with the rules of proper pharmacovigilance activities and the recognition of monitoring reports from competent authorities of other countries
Name of the legislative act:
On establishing the procedure for professional monitoring of compliance with the rules of proper pharmacovigilance activities and the recognition of monitoring reports of competent authorities of other countries Government of the Republic of Armenia 26.06.2025 N 874-Decree https://www.arlis.am/hy/acts/208930/print/act
The status of the legislative act:
This Law entered into force on July 10, 2025.
What do the changes concern?
We would like to inform you that the procedure for professional monitoring of compliance with the rules of proper pharmacovigilance practice (PVP) of the pharmacovigilance system by drug registration certificate holders has come into force.
The Order regulates the relations related to the professional monitoring of the pharmacovigilance system of holders of registration certificates for medicines registered on the basis of the Law "On Medicines".
Monitoring of medicines registered within the EAEU is carried out in accordance with the rules approved by the Decision of the EAEU Council No. 83 of November 3, 2016. The concepts used in the Regulation are interpreted in accordance with Part 2 of Article 17 of the Law "On Medicines" and the GMP rules established by the authorized body of the healthcare sector of the Republic of Armenia.
The monitoring is carried out to assess the compliance of the pharmacovigilance system of the marketing authorisation holder, i.e. the applicant. It is carried out at the place of activity of the qualified or responsible person, on a planned or unplanned basis, in accordance with paragraphs 148-155 of the GMP rules. The monitoring is carried out by the expert organization in the field of state regulation of drug circulation, which was established by the RA Government Resolution No. 1122-N of July 18, 2024. It is also provided that the organization is obliged to carry out the monitoring, ensuring compliance with the requirements of the quality management system.
1. This procedure regulates the relations related to the professional monitoring of the compliance of the holders of registration certificates of medicines registered in accordance with the Law "On Medicines" (hereinafter referred to as the Law) with the rules of proper pharmacovigilance activity of the pharmacovigilance system (hereinafter referred to as monitoring). Professional monitoring of the compliance of medicines registered within the framework of the Eurasian Economic Union with the rules of proper pharmacovigilance activity is carried out in accordance with the Rules for the implementation of pharmaceutical monitoring approved by the Resolution of the Council of the Eurasian Economic Commission No. 83 of November 3, 2016.
2. The concepts used in this Regulation shall be applied within the meaning of the “Pharmacovigilance Practices” (PVP) rules established by the authorized state administration body in the field of healthcare of the Republic of Armenia (hereinafter referred to as the authorized body) in accordance with Part 2 of Article 17 of the Law.
3. The monitoring is carried out in order to assess the compliance of the pharmacovigilance system of the registration certificate holder (hereinafter referred to as the applicant) with the GMP rules, at the place of operation of the qualified person or responsible person (including those performing work on a contractual basis), in a planned or unplanned manner determined in accordance with paragraphs 148-155 of the GMP rules.
4. The monitoring is carried out by the expert organization in the field of state regulation of drug circulation (hereinafter referred to as the organization) established by the Resolution of the Government of the Republic of Armenia No. 1122-N of July 18, 2024.
5. In accordance with Article 17, Part 12 of the Law, the costs associated with the inspection (including business trips) shall be reimbursed by the holder of the registration certificate, based on an agreement concluded between the parties in accordance with the procedure prescribed by law.
6. The organization carries out monitoring to ensure compliance with the requirements of the quality management system.
4. On the procedure for professional monitoring of compliance with the rules of good laboratory
practice and the issuance of a certificate of good laboratory practice, as well as on the
establishment of the list of necessary documents
Name of the legislative act:
Professional monitoring of compliance with the rules of good laboratory practice and the issuance of a certificate of good laboratory practice, as well as on the establishment of the list of necessary documents Decision No. 875-N
https://www.arlis.am/hy/acts/208920
The status of the legislative act:
This Law entered into force on July 10, 2025.
What do the changes concern?
We inform you that has entered into force On the procedure for professional monitoring of compliance with the rules of good laboratory practice and the issuance of a certificate of good laboratory practice, as well as on the establishment of the list of necessary documents Decision No. 875-N. The decision establishes the procedure for professional monitoring of compliance with the GMP rules (Appendix No. 1), the procedure for issuing a GMP certificate (Appendix No. 2), and the list of documents necessary for monitoring (Appendix No. 3). The procedure establishes the procedures for monitoring compliance with the GMP rules of preclinical studies conducted in the Republic of Armenia. The concepts used are interpreted in the context of Article 13 of the Law "On Medicines" and the rules established by the RA authorized healthcare body. The monitoring is carried out by the expert organization established by the RA Government Decision No. 1122-N of July 18, 2024. The costs of monitoring and related expenses (including business trips) are reimbursed by the applicant. The monitoring is carried out on the basis of a quality management system in accordance with international standards.
Based on Part 4 of Article 13 of the Law of the Republic of Armenia "On Medicines", the Government of the Republic of Armenia decides: 1. Define:
1) the procedure for professional monitoring of compliance with the rules of good laboratory practice, in accordance with Appendix N 1;
2) the procedure for issuing a certificate of proper laboratory operations, in accordance with Appendix N 2;
3) the list of documents necessary for conducting professional monitoring of compliance with the rules of good laboratory practice, in accordance with Appendix N 3. 2. This decision shall enter into force on the tenth day following the date of its official publication.
PROFESSIONAL OBSERVATION OF COMPLIANCE WITH THE RULES OF GOOD LABORATORY PRACTICE
1. GENERAL PROVISIONS
1. This procedure regulates the relations related to the professional monitoring of compliance with the rules of proper laboratory practice of preclinical research conducted in the Republic of Armenia (hereinafter referred to as monitoring).
2. The concepts used in this Regulation are applied in accordance with Article 13 of the Law "On Medicines" (hereinafter referred to as the Law), in the sense of the rules for proper laboratory practice (hereinafter referred to as GLP) established by the authorized state administration body in the field of healthcare of the Republic of Armenia.
3. According to Article 13, Part 2 of the Law, monitoring is the assessment of the compliance of preclinical studies with the rules of the GMP at the sites where the studies are conducted (including those performing work on a contractual basis).
4. The monitoring is carried out by the expert organization in the field of state regulation of drug circulation (hereinafter referred to as the organization) established by the Resolution of the Government of the Republic of Armenia No. 1122-N of July 18, 2024.
5. Expenses related to the review (including business trips), in accordance with Article 13, Part 2 of the Law, shall be reimbursed by the applicant based on the contract concluded between the parties in accordance with the procedure prescribed by law.
6. Monitoring is carried out in accordance with the organization's quality management system in accordance with international standards.
PART III: WORKING SECTOR
(This section of legal news includes legal news related to the labor sector for July 2025)
1. On amendments and additions to the Labor Code regarding digital employment contracts
Name of the legislative act:
Law No. HO-525-N on Amendments and Supplements to the Labor Code of the Republic of Armenia
https://www.arlis.am/hy/acts/201313
Change status:
1. This Law shall enter into force on July 1, 2025, with the exception of Article 1, Part 1, Clause 4, Article 2, Part 1, Clauses 3 and 4, Article 3, Part 1, Clauses 2 and 3, Article 7, Part 1, Clauses 3-4 and 7 of this Law.
2. Article 1, Part 1, Clause 4, Article 2, Part 1, Clauses 3 and 4, Article 3, Part 1, Clauses 2 and 3, Article 7, Part 1, Clauses 3-4 and 7 of this Law shall enter into force on January 1, 2026.
3. Article 1, Part 1, Clause 3, Article 2, Part 1, Clause 2, Article 7, Part 1, Clause 5 of this Law shall be in force until January 1, 2026.
4. After January 1, 2026, within a twelve-month period, employers shall enter into the digital system the employment contracts of employees in employment relations with them (if the employment contracts were not concluded through the digital system) under the conditions in effect at the time of entry. The procedure for entering into the digital system the employment contracts concluded and continuing before the entry into force of this Law shall be determined by the Government.
5. Employment relationships that arose under an individual legal act on employment before this law entered into force shall continue under that legal act, and the provisions of the Labor Code of the Republic of Armenia shall apply to them.
Which legislative act was amended by the adoption of the above-mentioned act:
As a result of the adoption of this Law, a change has occurred in the Labor Code of the Republic of Armenia.
What do the changes concern?
The amendments to this Law relate to the digitalization of labor relations. In particular, the law introduces a digital system of labor contracts, through which contracts can be concluded, amended and terminated with an electronic signature. It is established that the employer is obliged to provide the employee with a copy of the legal act on the termination or acceptance of the contract within three days, digitally or in another way. In the case of persons under the age of 16, the contract is signed by a parent or guardian. Appendices to labor contracts can also be concluded and transmitted electronically or by mail. State bodies (State Revenue Committee, Inspectorate, etc.) are given access to the data of the digital system for the purpose of exercising control.
To supplement Article 5 of the Labor Code of the Republic of Armenia of November 9, 2004 (hereinafter referred to as the Code) with the following content:
"4.1. After the individual legal act on termination of the employment contract is accepted through the digital system for concluding employment contracts, within three days, a copy of the act shall be sent to the employee by the notification method specified in the employment contract."
to be supplemented with the following content in section 4.2:
"4.2. If the individual legal act on termination of the employment contract is not adopted through the digital system for concluding employment contracts, then one copy of the act shall be given to the employee within three days after its adoption."
to supplement with the following content in section 4.3:
"4.3. In the cases specified in Part 4 of Article 13 of this Code, as well as in Part 2 of Article 14, one copy of the individual legal act on employment, as well as termination of the employment contract, shall be handed over to the employee within three days after its acceptance."
In Article 13 of the Code, add the following part 2:
2. The origin, modification and termination of employment relationships can also be carried out through a digital system.
to be supplemented with the following part 3:
3. The origin, modification and termination of employment relationships are carried out through a digital system, except for the cases specified in Part 4 of this Article, as well as in Part 2 of Article 14 of this Code.
In Article 14 of the Code, part 1 shall be supplemented with a new sentence with the following content:
"In the case specified in Part 4 of Article 13 of this Code, employment relations between an employee and an employer arise by a written employment contract concluded in accordance with the procedure prescribed by labor legislation or by an individual legal act on employment."
In Article 85 of the Code, add the following part 1.4:
1.4. Employment contracts with an electronic digital signature may be concluded through a digital system for concluding employment contracts. In this case, the employment contract is concluded by drawing up a single electronic contract with the electronic digital signature of the parties, and in the case of employment contracts concluded with employees under the age of sixteen, by drawing up a single electronic contract with the electronic digital signature of one of the parents or foster parents or adoptive parents or guardian. The employment contract enters into force on the day of its signing by the employer and the employee with an electronic digital signature through a digital system, unless a later date is specified in the contract.
to supplement parts 1.5 and 1.6 with the following content:
"1.5. The appendix to the employment contract is concluded in two copies, signed by the parties, and in the case of employment contracts concluded with employees under the age of sixteen, by drawing up a single document signed by the parents or foster parents or one of the adoptive parents or guardian, one copy of which is handed over by the employer to the employee within three days after the appendix is signed, and in the case of the emergence of employment relations with the participation of a person under the age of sixteen, to one of the parents or foster parents or adoptive parents or guardian.
1.6. The appendix to the employment contract may also be concluded by means of a connection providing postal or electronic communication, exchanging between the parties, which makes it possible to confirm the authenticity of the appendix to the employment contract and accurately determine that it is based on the employment contract. In the cases specified in this part, the party signing the appendix to the employment contract shall provide one copy of the appendix to the employment contract to the other party and, after signing it, shall receive it in one or more of the following ways:
1) by sending a signed copy of the appendix to the employment contract by registered mail with notification of receipt to the address or place of residence provided (specified) by the other party;
2) by sending a copy (facsimile reproduction) of the signed copy of the appendix to the employment contract via facsimile (telephoto) connection;
3) by sending a signed and electronically printed (scanned) copy of the employment contract appendix or a copy of the employment contract appendix with an electronic digital signature via a connection providing electronic communication (including by official e-mail as defined in the Law "On Public and Individual Notification via the Internet").
To supplement the Code with Chapter 13.1 with the following content:
"CHAPTER 13.1 DIGITAL SYSTEM FOR SEALING EMPLOYMENT CONTRACTS
Article 102.1. Digital system for concluding employment contracts and basic principles of application of the system
1. The digital system for concluding employment contracts (hereinafter referred to as the digital system) is a set of data, the purpose of which is:
1) ensure the conclusion (acceptance) and use of data on the employment contract or individual legal act on the termination of the employment contract, as well as amendments thereto, with the entry of data, as well as the possibility of downloading such data after entry;
2) to support the implementation of state control over compliance with labor legislation requirements.
2. The main principles of using the digital system are:
1) ensuring the effectiveness of supervision over compliance with labor legislation requirements;
2) access to the data available in the digital system at any time for the parties to the employment relationship who have the authority to use the digital system in accordance with the procedure established by this Code.
Article 102.2. Digital system management, data access, technical requirements and management procedure
1. The authorized body implementing the management of the digital system shall be established by the Government of the Republic of Armenia.
2. The inspection body is granted access to the data of the digital system in the exercise of supervisory functions in accordance with the procedure prescribed by law to the extent necessary for supervision over the requirements of labor legislation, other regulatory legal acts containing labor law norms, collective and employment contracts within the framework of the powers reserved by law.
3. The relevant departments of the State Revenue Committee of the Republic of Armenia are granted access to the data of the digital system to the extent necessary to formalize the employment of an employee in accordance with the procedure established by the legislation or to check the accuracy of submitting an application for registration for an employee, as well as to carry out tax control over the compliance of the income calculated and paid for the employee, calculated (paid) income tax, social and other mandatory payments within the framework of the authorities reserved by the legislation.
4. The Migration and Citizenship Service of the Ministry of Internal Affairs of the Republic of Armenia is granted access to the data of a foreign worker in the digital system to the extent necessary to ensure the course of administrative proceedings initiated based on applications submitted through the unified electronic platform for the involvement of a foreign worker https://workpermit.am.
5. In the digital system, the employer and the employee are given a window for accessing electronic data (personal page). In the event of the emergence of an employment relationship involving a person under the age of sixteen, access to electronic data is granted to the parent or foster parent or adoptive parent or guardian who signs the employment contract.
6. The requirements for the digital system, the procedures for providing access to the data of the digital system and concluding employment contracts through the digital system shall be established by the Government of the Republic of Armenia."
2. On the requirements for the digital system for concluding employment contracts, on providing
access to data in the digital system, on the procedure for concluding employment contracts
through the digital system, and on establishing the authorized body managing the digital system
Name of the legislative act:
On the requirements for the digital system for concluding employment contracts, providing access to the data of the digital system, the procedure for concluding employment contracts through the digital system and determining the authorized body managing the digital system, dated April 10, 2025 N 410-N
https://www.arlis.am/hy/acts/205500
The status of the legislative act:
Entered into force on July 1, 2025.
What does the Decision concern?
We inform all organizations and individuals operating in the labor sector that by the decision of the Government of the Republic of Armenia of April 10, 2025, a new procedure for concluding, amending and terminating employment contracts has been introduced through a digital system. This procedure stipulates that employment relations, the conclusion, amendment or termination of contracts, must be carried out exclusively on the electronic platform of the State Revenue Committee of the Republic of Armenia, by filling in the relevant fields and confirming them with electronic signatures by the parties.
The mentioned system allows to ensure a complete and automated process of signing, registering and transferring contracts to tax authorities, based on the regulations established by law. At the same time, access to data of the relevant state bodies - the State Revenue Committee, the State Tax Service and the Migration Service of the Ministry of Internal Affairs - is ensured within the framework of their powers. The order comes into force on July 1, 2025.
We urge all employers and parties regulating labor relations to prepare for the changes in a timely manner to exclude legal risks and ensure the implementation of the legal process.
Based on Parts 1 and 6 of Article 102.2 of the Labor Code of the Republic of Armenia, the Government of the Republic of Armenia decides:
1. To establish the requirements for the digital system for concluding employment contracts, the procedure for providing access to the data of the digital system and concluding employment contracts through the digital system, in accordance with the appendix.
2. The authorized body managing the digital system for concluding employment contracts is the State Revenue Committee of the Republic of Armenia.
3. After the adoption of this decision, until the entry into force of this decision, the Minister of Internal Affairs of the Republic of Armenia, the Head of the Health and Labor Inspection Body of the Republic of Armenia, together with the Chairman of the State Revenue Committee of the Republic of Armenia, shall establish procedural regulations for providing access to data in the digital system. 4. This decision shall enter into force on July 1, 2025.
Appendix
The Government of the Republic of Armenia's 2025
Decision No. 410-N of April 10.
REQUIREMENTS FOR A DIGITAL SYSTEM FOR SIGNING LABOR CONTRACTS, PROVIDING ACCESS TO DATA IN THE DIGITAL SYSTEM AND SIGNING LABOR CONTRACTS THROUGH THE DIGITAL SYSTEM
1. GENERAL PROVISIONS
1. This procedure establishes the requirements for the digital system for concluding employment contracts (hereinafter referred to as the digital system), regulates the relations related to providing access to data in the digital system and concluding employment contracts through the digital system.
2. The origin, modification and termination of employment relationships are carried out through a digital system, except for the cases specified in Part 4 of Article 13 of the Labor Code of the Republic of Armenia, as well as Part 2 of Article 14.
2. REQUIREMENTS FOR THE DIGITAL SYSTEM, SIGNING OF EMPLOYMENT CONTRACTS THROUGH THE DIGITAL SYSTEM
3. The employer or his representative (hereinafter referred to as the employer) shall conclude the employment contract, draw up the agreement on amending or supplementing the employment contract, and the individual legal act on terminating the employment contract (hereinafter referred to as the document) through the relevant page of the Electronic Reporting System of the State Revenue Committee of the Republic of Armenia, filling in the necessary fields.
4. The document drawn up after the action provided for in paragraph 3 of this procedure shall be signed with the employer's electronic digital signature.
5. The document signed by the employer is reflected on the corresponding page of the Unified Platform of Electronic Services for Individuals of the State Revenue Committee of the Republic of Armenia, after which the system automatically sends a notification to the email address of the person being hired.
6. Citizens of the Republic of Armenia access the digital system through the "I am" national identification platform, and foreigners - through the taxpayer registration number (TIN) and the login and password provided by the State Revenue Committee of the Republic of Armenia.
7. If the person being hired (employee) agrees with the content of the employment contract or the agreement on amending or supplementing the employment contract, he/she shall sign the employment contract or the agreement on amending or supplementing the employment contract with an electronic digital signature no later than the working day preceding the effective date provided for therein.
8. For citizens of the Republic of Armenia, an electronic digital signature embedded in an identification card or a mobile electronic digital signature is used in accordance with the requirements set forth in the Resolution of the Government of the Republic of Armenia No. 572-N of May 25, 2017, and for foreigners, other electronic digital signature solutions (including, but not limited to, the CoSign electronic signature type) are used in accordance with the requirements set forth in the Resolution of the Government of the Republic of Armenia No. 285-N of March 1, 2018.
9. After the employment contract enters into force, based on the information contained in the employment contract, a registration application for a newly hired employee (application for registration of the employee's personal data) is automatically generated through a digital system, which automatically reflects the personal information contained in the employment contract and included in the registration application.
10. The registration application formed automatically by employers is submitted to the tax authority by the end of the working day on which the registration application was formed, also filling in the information included in the registration application that is not included in the employment contract.
11. A registration application is automatically generated through the digital system also in the event that the employer draws up an individual legal act upon termination of the employment contract.
12. The following fields shall be filled in the employment contract:
1) contract number*.
2) the place of conclusion of the contract *.
3) Date of signing the contract (the date of signing by the employee with an electronic digital signature - filled in automatically)*.
4) Employer's tax identification number and name (first name, last name, patronymic in the case of an individual employer)*.
5) employee's name, surname, patronymic*.
6) the employee's public service number or the reference number of the absence of a public service number, except if the employee is a foreign citizen or stateless person without residence status in the Republic of Armenia and will not actually be in the Republic of Armenia.
7) the employee's passport or identification card details (in the case of a foreign employee, also the details of the document confirming the right of residence or legal stay);
8) Place of work *.
9) the structural or separate subdivision or office or institution of the employer (if any) where the employee will work;
10) Year, month, date of commencement of work *.
11) Position title*.
12) job functions or a reference to the document defining the functions arising from the position, which is an annex to the employment contract*.
13) the amount of the basic salary (including taxes paid from the salary, social or other mandatory payments prescribed by law)*.
14) the method of determining the salary *.
15) supplements, bonuses, and additional payments provided to employees in accordance with the procedure established by the legislation of the Republic of Armenia*.
16) type of employment contract (indicate indefinite or fixed term)*. In the case of a fixed term employment contract, also indicate the term of validity of the contract*.
17) in case of establishing a probationary period , the duration and conditions of the probationary period;
18) working hours*.
19) weekly working hours (excluding cumulative working hours)*.
20) type of annual leave (minimum, additional, extended) and duration*.
21) position, name, surname* of the person signing the employment contract.
22) methods of notification by the employer and employee to each other in connection with employment relations*.
23) rights and obligations of the parties ;
24) a note about the appendix, if the employment contract has an appendix, also indicating the scope of issues regulated by the appendix;
25) other conditions.
13. The items marked with an asterisk in paragraph 12 of these regulations are mandatory.
14. Employment contracts signed with persons performing civil work and providing technical services in state and local self-government bodies, as well as with experts engaged by state bodies for the implementation of individual tasks, agreements on amending or supplementing the employment contract, and individual legal acts on terminating the employment contract are automatically transferred from the civil service information platform to the digital system through the interoperability platform of the Government of the Republic of Armenia.
15. Clause 14 of this Procedure also applies to employment relationships arising with persons holding public positions and public service positions, if the personal affairs of these persons are conducted electronically in accordance with the procedure established by Part 2 of Article 17 of the Law "On Public Service".
3. PROVIDING ACCESS TO DIGITAL SYSTEM DATA
16. Access to the digital system is provided to:
1) To the relevant subdivisions of the State Revenue Committee of the Republic of Armenia, to the extent necessary to formalize the employment of an employee in accordance with the procedure established by the legislation or to verify the accuracy of the submission of a registration application for an employee, as well as to carry out tax control over the compliance of the income calculated and paid for the employee, the calculated (paid) income tax, social and other mandatory payments within the framework of the authorities reserved by the legislation.
2) The Health and Labor Inspection Body of the Republic of Armenia, to the extent necessary for supervision over the requirements of labor legislation, other regulatory legal acts containing labor law norms, and collective and employment contracts within the framework of the powers reserved by the legislation;
3) The Migration and Citizenship Service of the Ministry of Internal Affairs of the Republic of Armenia, in the volume necessary to ensure the course of administrative proceedings initiated based on applications submitted through the unified electronic platform for the involvement of a foreign worker https://workpermit.am.
17. The bodies specified in paragraph 16 of this Regulation shall be provided with access to the following documents, signed through a digital system:
1) employment contracts;
2) agreements on amendments or supplements to the employment contract;
3) individual legal acts on termination of the employment contract.
PART IV. CRYPTOASSETS SECTOR
(This section of legal news includes legal news related to the crypto-asset sector as of July 2025)
1. RA Law on Cryptoassets
Name of the legislative act:
RA Law on Cryptoassets HO-159-N
https://www.arlis.am/hy/acts/208599/latest
The status of the legislative act:
This Law entered into force on July 4, 2025.
What do the changes concern?
We would like to inform you that the RA Law "On Cryptoassets" has been adopted, which regulates the implementation of activities in the cryptoasset market in the Republic of Armenia. The new law aims to ensure the protection of customer rights, market transparency, and the reduction of systemic risks. The law defines:
- the procedure for issuing, offering and buying and selling crypto assets,
- Types and conditions of provision of services with crypto assets,
- as well as the regulatory and supervisory functions of the Central Bank in this sector.
The law also identifies cases to which it does not apply, for example, if the crypto-asset is inherently considered a security, bank deposit, insurance certificate, or cannot be transferred to another person. It is envisaged that crypto-asset service providers will be subject to licensing in some cases, with the Central Bank acting as the supervisory authority. All individuals and organizations involved in the crypto-asset market or planning such activities are advised to carefully study the provisions of the law to ensure legal compliance.
ABOUT CRYPTO ASSETS
PART 1
GENERAL PROVISIONS
CHAPTER 1
GENERAL PROVISIONS
The main objectives of this law are to protect the rights and legitimate interests of customers and purchasers of crypto-assets in the crypto-asset market of the Republic of Armenia, to ensure fair and transparent operation of the crypto-asset market, and to reduce systemic risks in the crypto-asset market.
Article 1. Subject matter and scope of the law
1. This law regulates the relations related to the implementation of activities in the crypto-assets market of the Republic of Armenia and defines:
1) the procedure for the public offering and purchase and sale of crypto assets ;
2) types of crypto-asset services (hereinafter also referred to as crypto-asset services), as well as the procedure for their provision and implementation;
3) the powers and responsibilities of the Central Bank in the field of regulation and supervision of the cryptoasset market;
4) liability for violation of the requirements of this Law, regulatory legal acts adopted on its basis, and other legal acts.
2. The cryptoasset market of the Republic of Armenia includes persons issuing and offering cryptoassets in the territory of the Republic of Armenia, persons providing services with cryptoassets subject to licensing under this Law, and persons acquiring cryptoassets through persons offering or providing services with cryptoassets subject to licensing under this Law in the territory of the Republic of Armenia.
3. The provisions of this Law do not apply to crypto-assets that meet the definition of a security or derivative financial instrument within the meaning of the Law on Securities Market, the relations related to which are regulated by the Law on Securities Market.
4. The provisions of this Law do not apply to crypto-assets that meet the definition of a fund unit or share within the meaning of the Law on Investment Funds, the relations related to which are regulated by the Law on Investment Funds.
5. The provisions of this Law do not apply to crypto-assets that meet the definition of a bank deposit or bank deposit agreement within the meaning of the Law "On Banks and Banking Activities", the relations related to which are regulated by the Law "On Banks and Banking Activities".
6. The provisions of this Law do not apply to crypto-assets that meet the definition of an insurance contract or certificate within the meaning of the Law "On Insurance and Insurance Activities", the relations related to which are regulated by the Law "On Insurance and Insurance Activities".
7. The provisions of this law do not apply to the following entities if they act as issuers or provide services with crypto assets:
1) On the Republic of Armenia, the Central Bank, and the communities of the Republic of Armenia.
2) The International Monetary Fund, the European Central Bank, the European Investment Bank, other international organizations of which the Republic of Armenia is a member, as well as other international organizations included in the list established by the Board of the Central Bank.
8. The provisions of this law do not apply to crypto-assets that:
1) are inherently unique (each has unique characteristics) and are not interchangeable, or
2) it is technically impossible or prohibited by law or the terms of issue to transfer it to another person;
3) issued by central banks or other national banks.
9. For the purposes of paragraph 1 of Part 8 of this Article, a cryptoasset shall not be considered unique or nonfungible if such cryptoasset has been offered in separate parts.
10. The provision of services with crypto assets is not regulated by the provisions of this law if they are provided:
1) only legal entities belonging to the same group or
2) within the scope of activities carried out by the liquidation committee, and in case of insolvency, by the temporary administration."
2. On amending the Law "On Non-Cash Transactions" regarding crypto-assets
Name of the legislative act :
Law No. HO-160-N on Amendments to the Law "On Non-Cash Transactions"
https://www.arlis.am/hy/acts/208570/latest
Change status :
The amendment to this Law entered into force on July 4, 2025
Which legislative act was amended by the adoption of the above-mentioned act:
As a result of this amendment, a change has been made to the RA Law "On Non-Cash Transactions"
What do the changes concern?
We would like to inform you that an amendment has been made to the Law "On Non-Cash Transactions", whereby the concept of "person providing services with crypto assets" has been included among the main terms used in the law.
In particular, Article 3, Part 1 of the law has been supplemented with Point 19, according to which:
"person providing services with crypto-assets " is used with the meaning as defined in the Law "On Crypto-Assets".
This amendment ensures uniformity in the use of terms in various laws and clarifies that the provision of services with crypto assets is also included in the legislative framework of non-cash transactions.
It is recommended that legal entities and individual entrepreneurs who will carry out or are already carrying out functions related to crypto assets consider the formulation of functions in accordance with the procedure established by law and, if necessary, obtain professional legal assistance.
To supplement Part 1 of Article 3 of the Law HO-12-N of January 18, 2022 "On Non-Cash
Transactions" with the following paragraph 19:
Article 3. Basic concepts used in the law
1. The following basic concepts are used in this law:
19) a person providing services with crypto assets, within the meaning of the Law "On Crypto Assets".
3. On Amendments and Supplements to the Law "On Securities Market"
Name of the Legislative Act:
of the Republic of Armenia No. HO-163-N of 29.05.2025 on Amendments and Supplements to the Law "On Securities Market"
https://www.arlis.am/hy/acts/208588
Change Status:
The amendment to this Law entered into force on July 4, 2025.
Which legislative act was amended by the adoption of the above-mentioned act:
As a result of this amendment, a change was made to the RA Law "On Securities Market"
What do the changes concern?
We would like to inform you that numerous amendments have been made to the laws , which are aimed at integrating the provisions of the Law "On Cryptoassets" into the current legislation regulating the financial market. these changes: From now on, qualified investors are also considered investment fund managers and persons providing services with crypto assets. Market operators and the Central Depository may also provide services related to cryptoassets, provided they comply with the conditions set forth in relevant laws and CB acts. Special requirements have been established in cases where we are dealing with the custody, settlement, or operation of a market for securities with crypto-asset characteristics. The Central Bank has been granted the authority to establish exceptions or other procedures through its regulatory acts, taking into account decentralized ledger technology It has been established that the Central Bank has the right to apply punitive measures in case of violation of regulatory acts of the crypto-asset market. These changes are particularly important for companies, investment service providers, market operators and custodians that wish to or already carry out activities related to the crypto-asset market . We recommend that you review your organization's internal policies and internal acts to align them with the new legislation, and, if necessary, obtain legal advice to ensure the correct application of the new norms.
In subparagraph “a” of paragraph 23 of Article 3 of the Law HO-195-N of October 11, 2007 “On the Securities Market” (hereinafter referred to as the Law), the words “and investment fund managers” shall be replaced with the words “, investment fund managers and persons providing services with cryptoassets”.
Article 3. Basic concepts used in the law
For the purposes of this law:
Old version.
23) Qualified investors are considered to be: a. investment companies, branches of foreign investment companies, banks, credit organizations, insurance companies, investment and pension funds, and investment fund managers , as well as legal entities registered in a foreign country that, in accordance with the legislation of that country, have the right to carry out the activities of any person defined in this subparagraph
New version.
23) Qualified investors are considered to be: a. investment companies, branches of foreign investment companies, banks, credit organizations, insurance companies, investment and pension funds, investment fund managers and persons providing services with crypto assets , as well as legal entities registered in a foreign country that, in accordance with the legislation of that country, have the right to carry out the activities of any person defined in this subparagraph.
In Article 28 of the Law, the title shall be amended as follows and part 1.1 shall be supplemented with the following content:
Article 28. Investment companies and additional services provided by them
1.1. Investment companies have the right to provide crypto-asset services defined in paragraphs 1-9 of Part 1 of Article 16 of the Law "On Crypto-Assets" in accordance with the procedure established by the Law "On CryptoAssets" and regulatory legal acts adopted on its basis.
In Article 103 of the Law, add the following parts 5.1 and 5.2:
Article 103. Activity license
5.1. The Operator has the right to provide the service of operating a crypto-asset trading platform defined in Article 16, Part 1, Clause 1 of the Law "On Crypto-Assets" in accordance with the procedure established by the Law "On Crypto-Assets" and the regulatory legal acts adopted on its basis.
5.2. In addition to the requirements set forth in this Law for the activities of a market operator, the requirements set forth in Parts 3-6 and 12 of Article 51 of the Law on Cryptoassets shall apply to the activities of a market operator in relation to securities that meet the definition of a “cryptoasset” as defined in the Law on Cryptoassets. The Central Bank may, by its regulatory legal acts, establish a different procedure for applying the requirements of this Chapter in relation to securities that meet the definition of a “cryptoasset” as defined in the Law on Cryptoassets or exceptions to the requirements set forth in this Law, including based on the specifics of decentralized ledger technology.
In Article 175 of the Law, add the following part 2.1:
Article 175. Central Depository
2.1. The Central Depository has the right to provide custody services defined in Article 16, Part 1, Clause 2 of the Law "On Cryptoassets" in accordance with the procedure established by the Law "On Cryptoassets" and the regulatory legal acts adopted on its basis.
To supplement the law with the following content in Article 197.1:
Article 197.1. Specific requirements for the custody of securities that meet the definition of "cryptoasset"
1. In addition to the requirements set forth in this Law for the custody of securities, the requirements set forth in Article 52 of the Law on Cryptoassets shall apply to the custody of securities that meet the definition of a “cryptoasset” as defined in the Law on Cryptoassets. The Central Bank may, by its regulatory legal acts, establish a different procedure for applying the requirements of this Chapter or exceptions to the requirements set forth in this Law in relation to securities that meet the definition of a “cryptoasset” as defined in the Law on Cryptoassets, including based on the specificities of decentralized ledger technology.
Article 198 of the Law shall be supplemented with the following part 3:
Article 198. Securities settlement system
3. The Central Bank may, by its regulatory legal acts, establish a different procedure for applying the requirements of this Chapter or exceptions to the requirements provided for by this Law in relation to securities that meet the definition of “cryptoasset” as defined in the Law “On Cryptoassets”, including based on the specificities of decentralized ledger technology.
Article 209 of the Law shall be supplemented with the following part 4:
Article 209. Jurisdiction to apply measures of responsibility
4. For violation of the requirements of the legal acts regulating the crypto-asset market provided for in Article 2 of the Law "On Crypto-Assets", other regulatory legal acts adopted on their basis, including internal legal acts on the provision of services with crypto-assets, the Central Bank shall apply liability measures in accordance with the procedure established by the Law "On Crypto-Assets".
4. On Amendments to the Law "On Currency Regulation and Currency Control"
Name of the legislative act :
Law of the Republic of Armenia " On Currency Regulation and Currency Control " of 29.05.2025 N HO-164-N
https://www.arlis.am/hy/acts/208591
Change status :
The amendment to this Law entered into force on July 4, 2025
Which legislative act was amended by the adoption of the above-mentioned act:
As a result of this amendment, a change was made to the RA Law " On Currency Regulation and Currency Control".
What do the changes concern?
We would like to inform you that an amendment has been made to the Law "On Currency Regulation and Currency Control", whereby The list of possible payments in foreign currency has also been supplemented with elements related to the field of crypto assets. In particular, the Law now provides for the pricing of tokens attached to foreign currency, as defined in the Law on Crypto Assets, and payments upon their acquisition and redemption. It is recommended that organizations that conduct international settlements or investment transactions, including entities operating in the cryptoasset market, take this change into consideration.
In Article 6, Part 9 of the Law HO-135-N of November 24, 2004 "On Currency Regulation and Currency Control", after the words "payments (transfers) under repo agreements", add the words ", the quotation of tokens linked to foreign currency, payments upon their acquisition and redemption, as defined in the Law "On Cryptoassets".
Article 6. Conducting transactions in the currency of the Republic of Armenia in the Republic of Armenia:
Old version.
9. Payments of interest on foreign currency loans and deposits attracted in foreign currency provided in the territory of the Republic of Armenia, at the request of the borrower or depositor, payments on foreign currency bonds (including coupons), payments (transfers) on derivative financial transactions related to securities denominated in foreign currency, foreign currency or interest rates, as defined by the Law of the Republic of Armenia "On Securities Market", payments (transfers) on repo agreements may be made in the currency in which the obligation was assumed, except for cases specified by the Central Bank.
New version.
9. Payments of interest on foreign currency loans and deposits in foreign currency provided in the territory of the Republic of Armenia, at the request of the borrower or depositor, payments on foreign currency bonds (including coupons), payments (transfers) on derivative financial transactions related to a security denominated in foreign currency, foreign currency or interest rate as defined by the Law of the Republic of Armenia "On the Securities Market", payments (transfers) on repo contracts, the quotation of tokens linked to a foreign currency as defined by the Law "On Cryptoassets", payments upon their acquisition and redemption may be made in the currency in which the obligation was assumed, except for cases specified by the Central Bank.
5. On Amendments and Supplements to the Law "On Joint Stock Companies"
Name of the legislative act :
"On Amendments and Supplements to the Law "On Joint Stock Companies " 29.05.2025 N HO-165-N
https://www.arlis.am/hy/acts/208593
Change status :
The amendment to this Law entered into force on July 4, 2025.
Which legislative act was amended by the adoption of the above-mentioned act:
As a result of this amendment, a change has occurred in the RA Law " On Joint Stock Companies ".
What do the changes concern?
We would like to inform you that amendments have been made to the Law "On Joint Stock Companies" , which aim to smoothly integrate persons providing services with crypto assets into the framework of regulated entities in the legislative field.
In particular, the amendment to Article 47 of the Law stipulates that the provisions related to the protection of shareholders' interests refer not only to banks and credit organizations, but also to investment companies , persons providing services with crypto assets , investment fund managers , and bankruptcy proceedings of insurance companies .
In addition, Article 52 of the Law has been supplemented with a new Part 3 , according to which, when a significant participant (shareholder) of a person providing services with crypto assets is registered in the register of shareholders, a decision on the preliminary consent of the Central Bank is required as a mandatory document.
This amendment aims to ensure the effectiveness of the Central Bank's supervision in cases where changes occur in the ownership structure of regulated entities in the financial market. It is recommended that organizations that are joint-stock companies or are involved in the crypto-asset market take the above requirements into account in the processes of shareholder registration, change of participants, and ensuring legality.
In Part 1 of Article 47 of the Law HO-232 of September 25, 2001 "On Joint Stock Companies" (hereinafter referred to as the Law), the words ""On Bankruptcy of Banks and Credit Organizations"" shall be replaced with the words ""On Bankruptcy of Banks, Credit Organizations, Investment Companies, Persons Providing Crypto-Asset Services, Investment Fund Managers and Insurance Companies"".
Article 47. Ensuring the interests of shareholders in the event of the placement of company shares and securities convertible into shares
Old version.
The shareholders of the company have the right of preemption to acquire new shares in proportion to their shares in the authorized capital during the period specified in the charter, except for the cases specified in paragraph 2 of this article and the Law of the Republic of Armenia "On Bankruptcy of Banks and Credit Organizations "
New version.
The shareholders of the company have the right of preemption to acquire new shares in proportion to their shares in the authorized capital during the period specified in the charter, except for the cases specified in paragraph 2 of this article and the Law of the Republic of Armenia "On Bankruptcy of Banks, Credit Organizations, Investment Companies, Persons Providing Services with Cryptoassets, Investment Fund Managers and Insurance Companies" .
Article 52 of the Law shall be supplemented with the following part 3:
Article 52. Making an entry in the register of shareholders of the company
For the entry in the register of shareholders (nominees) of a significant participant of a person providing services with crypto assets, as defined by the Law of the Republic of Armenia “On Crypto Assets”, in addition to the documents provided for entry in the register by law and legal acts, a specialized organization shall also submit the decision of the Central Bank on granting the prior consent to the person to become a significant participant of a person providing services with crypto assets.”
6. On Amendments and Supplements to the Law "On Banks and Banking Activities"
Name of the legislative act:
Law of the Republic of Armenia " On Amendments and Supplements to the Law "On Banks and Banking Activities" No. HO-166-N of 29.05.2025
https://www.arlis.am/hy/acts/208597
Change status :
The amendment to this Law entered into force on July 4, 2025.
Which legislative act was amended by the adoption of the above-mentioned act:
As a result of this amendment, a change was made to the RA Law " On Banks and Banking Activities ".
Ինչին են վերաբերում փոփոխությունները՝
Տեղեկացնում ենք, որ «Բանկերի եւ բանկային գործունեության մասին» օրենքում կատարվել է լրացում, որը կարեւոր նշանակություն ունի կրիպտոակտիվների ոլորտում գործող բանկերի եւ այլ ֆինանսական կազմակերպությունների համար։
Մասնավորապես, օրենքի 61-րդ հոդվածը լրացվել է նոր՝ 4-րդ մասով, որով ամրագրվում է հետեւյալը. այն դեպքում, երբ բանկը կամ ֆինանսական որեւէ կազմակերպություն խախտում է «Կրիպտոակտիվների մասին» ՀՀ օրենքի կամ դրա հիման վրա ընդունված իրավական ակտերի պահանջները, Կենտրոնական բանկը իրավունք ունի կիրառելու պատժամիջոցներ՝ «Կրիպտոակտիվների մասին» օրենքով սահմանված կարգով։
Խորհուրդ է տրվում բանկերին, բանկային խմբի անդամ կազմակերպություններին, ինչպես նաեւ կրիպտոակտիվներով ծառայություն մատուցող անձանց վերանայել իրենց ներքին կանոնակարգերը, քաղաքականություններն ու ընթացակարգերը՝ «Կրիպտոակտիվների մասին» օրենքի եւ ԿԲ-ի համապատասխան նորմատիվ ակտերի պահանջներին համահունչ գործելու նպատակով։
Article 61 of the Law shall be supplemented with the following part 4:
Article 61. Sanctions applied for violations of legislation
4. For violation of the requirements of the legal acts regulating the crypto-asset market, as provided for in Article 2 of the Law of the Republic of Armenia “On Crypto-assets”, other regulatory legal acts adopted on their basis, including internal legal acts on the provision of services with crypto-assets, the Central Bank shall apply liability measures in accordance with the procedure established by the Law of the Republic of Armenia “On Crypto- assets”.
7. On Amendments and Supplements to the Law "On Licensing".
Name of the legislative act :
Law No. HO-170-N of 29.05.2025 on Amendments and Supplements to the Law "On Licensing"
https://www.arlis.am/hy/acts/2 0 8574
Change status:
The amendment to this Law entered into force on July 4, 2025.
Which legislative act was amended by the adoption of the above-mentioned act:
As a result of this amendment, a change has been made to the RA Law " On Licensing ".
What do the changes concern?
We would like to inform you that an amendment has been made to the Law of the Republic of Armenia "On Licensing", according to which: The provision of services with crypto assets has been classified as an activity subject to licensing.
Accordingly, in order to carry out activities in the crypto-asset sector, it is necessary to obtain an appropriate license in accordance with the established procedure and from the Central Bank of the Republic of Armenia.
The section “Banking and financial and credit organizations” of the table of part 2 of Article 43 of the Law shall be supplemented with the following point 14:
| "14. | Providing services with crypto assets: according to the types of crypto-asset services defined by the Law of the Republic of Armenia "On Crypto-Assets" |
CB | - | - | - | - | - | H | - ". |
8. On Amendments and Supplements to the Tax Code
Name of the legislative act :
Law No. HO-175-N of 29.05.2025 on Amendments and Supplements to the Tax Code
https://www.arlis.am/hy/acts/208560
Change status:
The amendment to this Law entered into force on July 4, 2025.
Which legislative act was amended by the adoption of the above-mentioned act:
As a result of this amendment, a change was made to the Tax Code.
What do the changes concern?
We would like to inform you that a number of important amendments have been made to the Tax Code of the Republic of Armenia, which relate to the taxation mechanism and regulatory framework for crypto-assets. In particular: Article 4 of the Code introduces the concept of “cryptoasset”, defined on the basis of the RA Law “On Cryptoassets”.
The Code has been supplemented with a new Article 16.1, which establishes the procedure for determining the initial value of a cryptoasset, based on prices published on international exchanges and the exchange rates of the Central Bank.
According to Article 55 , transactions for the alienation of cryptoassets can now also be documented with other legal documents that are not considered settlement documents. Article 147 specifies which income from the alienation of cryptoassets can be deducted from the tax base, excluding certain cases. Article 150 stipulates that a 1% income tax rate will apply to income from the alienation of certain types of cryptoassets.
These changes apply to individuals and legal entities engaged in labor, business, and investment activities who are involved in the processes of acquiring, holding, and creating tokens for the disposal of crypto assets.
To supplement Part 1 of Article 4 of the Tax Code of the Republic of Armenia of October 4, 2016 (hereinafter referred to as the Code) with the following paragraph 17.1:
Article 4. Basic concepts used in the Code
17.1) crypto-asset – a crypto-asset defined by the Law on Crypto-Assets, including a crypto-asset that is considered to be essentially unique (each with unique characteristics) and non-fungible, as well as a crypto-asset automatically created as a reward as a result of activities carried out to maintain a decentralized ledger or validate transactions (except for crypto-assets that meet the definition of a security or derivative financial instrument within the meaning of the Law on Securities Market, crypto-assets that meet the definition of a fund share (stock) within the meaning of the Law on Investment Funds, and crypto-assets that meet the definition of a bank deposit (bank deposit agreement) within the meaning of the Law on Banks and Banking Activities).
The Code shall be supplemented with the following content in Article 16.1:
Article 16.1. Rules for determining the initial value of a cryptoasset
1. The initial value of a crypto-asset is determined as of the date of acquisition, receipt (including gratuitous) of the crypto-asset, based on the average exchange rate formed in the currency markets on that day, published by the Central Bank of the Republic of Armenia, against the price of the crypto-asset in US dollars or euros published by the exchange determined in accordance with the procedure established by the Government from the exchanges included in the list established by the Government on that day.
2. For the purposes of this Article, the average exchange rate published by the Central Bank of the Republic of Armenia until 16:00 on that day shall be taken as the basis for the average exchange rate formed in the currency markets published by the Central Bank of the Republic of Armenia on that day.
Article 55 of the Code shall be supplemented with the following part 15:
Article 55. Settlement document and its preparation 15.
The acquisition of the right to receive income in respect of transactions for the alienation of crypto-assets, as well as the costs of acquiring crypto-assets, may be documented by other documents substantiating the said transactions that are not considered settlement documents.
In Part 1 of Article 147 of the Code, add the following paragraph 16.1:
1. For the purpose of determining the tax base, the following are considered deductible income: "16.1) income from the alienation of a crypto-asset, except for crypto-assets that are inherently unique (each with unique characteristics) and non-fungible, as well as income from the alienation of crypto-assets automatically created as a reward as a result of activities carried out to maintain a decentralized ledger or validate transactions."
In Article 150 of the Code, add the following part 9.1:
Article 150. Income tax rates 9.1.
Income tax is calculated at a rate of one percent on income derived from the alienation of crypto-assets that are considered unique in nature (each with unique characteristics) and are not considered fungible, as well as crypto-assets that are automatically created as a reward as a result of activities carried out to maintain a decentralized ledger or validate transactions.
9. On Amendments and Supplements to the Law "On Investment Funds"
Name of the legislative act:
Law No. HO-176-N of 29.05.2025 on Amendments and Supplements to the Law on Investment Funds
https://www.arlis.am/hy/acts/208558
Change status:
The amendment to this Law entered into force on July 4, 2025.
Which legislative act was amended by the adoption of the above-mentioned act:
As a result of this amendment, a change was made to the Law on Investment Funds.
What do the changes concern?
We would like to inform you that a change has been made to the articles of the Law "On Investment Funds" aimed at effective regulation of the crypto-asset sector.
In particular: Article 52 of the Law (“The Manager”) has been supplemented with Parts 5.2 and 5.3, according to which: Managers are permitted to provide the following services as provided for in Article 16, Part 1, Paragraphs 7 and 8 of the Law on Cryptoassets: crypto asset portfolio management, as well as providing consulting services related to crypto assets, in accordance with the established procedure and conditions.
At the same time, the Central Bank reserves the right to authorize managers, through its regulatory legal acts, to perform additional types of activities that are closely related to the above-mentioned services, establishing appropriate requirements for their implementation.
Article 106 of the Law (“Measures of liability by the Central Bank and the procedure for their application”) has been supplemented with Part 5, according to which: The Central Bank is authorized to apply punitive measures in cases where the requirements of legal and regulatory acts regulating the crypto-asset market, including internal legal acts, as defined in the Law "On Crypto-Assets", are violated. These changes are aimed at strengthening the legal regulation of the crypto-asset sector in the context of investment fund management and ensuring financial stability.
In Article 52 of the Law, add the following content to Parts 5.2 and 5.3:
Article 52. The manager
"5.2. The Manager has the right to provide crypto-asset portfolio management services or crypto-asset advisory services, as defined in Article 16, Part 1, Clause 7 or 8 of the Law of the Republic of Armenia "On Crypto- assets", in accordance with the procedure established by the Law of the Republic of Armenia "On Crypto-assets" and the regulatory legal acts adopted on its basis.
5.3. The Central Bank has the right, by its regulatory legal acts, to permit managers to engage in additional activities that are closely related to the services provided for in Part 5.2 of this Article, if necessary, by establishing additional requirements for their implementation.
Article 106 of the Law shall be supplemented with the following part 5:
Article 106. Measures of responsibility by the Central Bank and the procedure for their application
"5. For violation of the requirements of the legal acts regulating the crypto-asset market, as provided for in Article 2 of the Law of the Republic of Armenia "On Crypto-Assets", other regulatory legal acts adopted on their basis, including internal legal acts on the provision of services with crypto-assets, the Central Bank shall apply liability measures in accordance with the procedure established by the Law of the Republic of Armenia "On Crypto-Assets".
10. On Amendments and Supplements to the Law "On State Duty"
Name of the legislative act:
Law No. HO-177-N of 29.05.2025 on Amendments and Supplements to the Law on State Duty
https://www.arlis.am/hy/acts/208555
Change status:
The amendment to this Law entered into force on July 4, 2025.
Which legislative act was amended by the adoption of the above-mentioned act:
As a result of this amendment, a change was made to the Law on State Duty.
What do the changes concern?
We inform you that an amendment has been made to Article 19 of the Law of the Republic of Armenia HO-186 of December 27, 1997 "On State Duty" with the aim of regulating the payment of state duty by persons providing services with crypto assets. In particular, the section "5. SCOPE OF BANKING AND FINANCIAL CREDIT ORGANIZATIONS" of Article 19 of the Law has been supplemented with the following content, paragraphs 5.13 to 5.15 , according to which:
- 5.13. An annual state duty of 500 times the base duty shall be established for the activities of a person providing services with crypto assets or a branch of a foreign person providing such services .
- 5.14. A state duty in the amount of 200 times the annual base duty is established for the activities of each branch of a person providing services with crypto assets .
- 5.15. A state duty in the amount of 200 times the annual base duty is established for the activities of each representative office of a person providing services with crypto assets or a foreign person providing such services . These amendments are aimed at ensuring increased efficiency of state control and participation in relation to entities operating in the crypto-asset sector.
Article 19 of Law HO-186 of December 27, 1997 "On State Duty" (hereinafter referred to as the Law) "5. SCOPE OF BANKING AND FINANCIAL CREDIT ORGANIZATIONS" to fill the section with the following content, paragraphs 5.13-5.15:
| "5.13. For the activities of a person providing services with crypto assets (branch of a foreign person providing services with crypto assets): annually |
in the amount of 500 times the base duty |
| 5.14. For the activities of each branch of a person providing services with crypto assets: annually |
base duty 200 times the amount |
| 5.15. For the activities of each representative office of a person providing services with crypto assets (a person providing services with foreign crypto assets): annually |
base duty "200 times more." |
11. On Amendments and Supplements to the Law "On Combating Money Laundering and the Financing of Terrorism"
Name of the legislative act:
Law No. HO-180-N of 29.05.2025 on Amendments and Supplements to the Law on Combating Money Laundering and the Financing of Terrorism
https://www.arlis.am/hy/acts/208567
Change status:
The amendment to this Law entered into force on July 4, 2025.
Which legislative act was amended by the adoption of the above-mentioned act:
As a result of this amendment, a change was made to the Law on Combating Money Laundering and the Financing of Terrorism.
What do the changes concern?
We would like to inform you that amendments have been made to the Law "On Combating Money Laundering and the Financing of Terrorism" of May 26, 2008 HO-80-N, aimed at increasing the transparency of crypto-asset transfers and strengthening control over financial flows . In particular: Article 3, Part 1, Clause 4 has been supplemented with a new subparagraph “t1” , according to which persons providing services with crypto assets , in accordance with the RA Law “On Crypto Assets”, are now included as reporting entities , with the exception of persons providing services for operating a crypto asset trading platform. A new clause 9.2 has been added to the same article , which establishes the legal definition of a crypto-asset transfer as a transfer transaction carried out through a financial institution, on behalf of the transferor, regardless of whether the transferor and the recipient are the same person or not.
The Law has been supplemented with a new Article 20.1, entitled “Obligations Related to Crypto-Asset Transfers” , which defines the mandatory information collected and maintained by financial institutions , including the names of the parties, registry addresses, account numbers, as well as personal identification data (passport data, address, registration number, etc.), depending on the type of transaction. In the case of a transfer of crypto-assets, the data must be immediately and securely transferred to the receiving financial institution , regardless of the method of their attachment. The scope of exceptions is defined , including for mutual settlements and certain card transactions. It is also required to implement a risk-based policy by intermediary financial institutions , including the rejection, suspension of transactions, as well as the review of correspondence in the absence of data. In addition, Article 27 of the Law has been supplemented with a new Part 4 , according to which the Financial Institution is obliged to reject a request for the transfer of a crypto-asset that does not contain the mandatory information specified in Article 20.1. At the same time, such transfers should be considered as suspicious transactions within the meaning of Article 7 of the Law.
The implementation of these changes strengthens the resilience and security of the financial system with respect to crypto-assets , ensures the prevention of their unknown origin, and ensures greater compliance with international standards .
In Part 1 of Article 3 of the Law HO-80-N of May 26, 2008 "On Combating Money Laundering and the Financing of Terrorism" (hereinafter referred to as the Law):
Article 3. Basic concepts used in the law
Add the following sub-point "t1" to point 4:
1. For the purposes of this law:
4) Reporting entities are:
"1. In accordance with the Law of the Republic of Armenia "On Cryptoassets", persons providing services with cryptoassets, with the exception of persons providing services for operating a cryptoasset trading platform."
to be supplemented with the following content in point 9.2:
"9.2) A crypto-asset transfer is a transaction that is carried out through a financial institution on behalf of the transferor with the aim of making a specific crypto-asset or amount available to the transferee at that or another financial institution, regardless of whether the transferor and the transferee are the same person."
The law should be supplemented with the following content in Article 20.1:
Article 20.1 Obligations related to crypto-asset transfers
1. Financial institutions sending and receiving crypto-asset transfers must obtain and maintain the following information:
1) the name, surname or title of the person making the transfer and the person receiving the transfer;
2) in the case of a crypto-asset transfer using decentralized ledger technology, the decentralized ledger addresses of the transferor and the transferee and the crypto-asset account numbers, if the crypto-asset account numbers were used to make the crypto-asset transfer;
3) in the case of a crypto-asset transfer without the use of decentralized ledger technology, the crypto- asset account numbers of the transferor and the transferee used for the crypto-asset transfer;
4) in the case of a financial institution sending a crypto-asset transfer, the identity document data of the person making the transfer, and in the case of a financial institution receiving a crypto-asset transfer, the identity document data or address or date and place of birth of the person receiving the transfer, for an individual, the personalization number (state registration, accounting number, etc.) or location address for a legal entity.
2. In the case of crypto-asset transfers, the financial institution sending the crypto-asset transfer shall promptly and securely transmit the information specified in this Article to the financial institution receiving the crypto-asset transfer. The information shall be transmitted directly or indirectly and shall not be required to be directly attached to the crypto-asset transfer. In the case of a grouping of more than one crypto-asset transfer, the financial institution sending the crypto-asset transfer may indicate in each individual transfer only the information specified in paragraphs 2 and 3 of Part 1 of this Article regarding the transferor, if the grouped transfer contains all the information specified in Part 1 of this Article.
3. All intermediary financial institutions involved in the transfer of crypto-assets shall ensure that the communication of information provided for in this Article is carried out promptly and securely.
4. The obligations provided for in this Article shall not apply to:
1) transfers and settlements made between financial institutions on their own behalf;
2) for transactions carried out with credit, debit or prepaid cards, if all messages (accompanying correspondence) that serve as the basis for the execution and registration (recording) of the transaction contain information on the numbers of these cards. The exception set out in this point applies to cases where the transaction is related to cash withdrawals through automatic teller machines, payment for goods and services, and does not apply to cases where credit, debit or prepaid cards are used to make transfers of crypto assets.
5. The intermediary financial institution involved in the transfer of a crypto-asset and the financial institution receiving the transfer of a crypto-asset shall establish effective risk-based policies and procedures to identify and take appropriate measures (including refusal or suspension of the transaction) with respect to transfers of crypto-assets that do not include the information provided for in this Article. In the event of a transfer of a crypto-asset that does not include the information provided for in this Article, the financial institution shall consider terminating correspondent or other similar relationships with the financial institutions involved in the transfer of the crypto-asset.
Article 5. Article 27 of the Law shall be supplemented with the following part 4:
Article 27. Refusal or termination of the execution of a transaction or establishment of a business relationship
4. The financial institution transferring the crypto-asset shall reject any request for the transfer of the crypto-asset if the information specified in Article 20.1 of this Law is missing, and consider classifying them as suspicious in accordance with Article 7 of this Law.
12. On making additions and amendments to the Civil Code of the Republic of Armenia
Name of the legislative act:
Law No. HO-181-N of 29.05.2025 on Amendments and Supplements to the Civil Code of the Republic of Armenia
https://www.arlis.am/hy/acts/208573
Change status:
The amendment to this Law entered into force on July 4, 2025.
Which legislative act was amended by the adoption of the above-mentioned act:
As a result of this amendment, a change has been made to the Civil Code of the Republic of Armenia.
What do the changes concern?
We would like to inform you that amendments and additions have been made to the Civil Code of the Republic of Armenia to restrict the use of crypto-assets as a means of payment or settlement. In particular: Article 142 of the Code (“Dram /currency/”) has been supplemented with a new Part 5, according to which:
"Making payments with crypto-assets in the territory of the Republic of Armenia is prohibited, with the exception of electronic money tokens provided for by the Law "On Crypto-Assets." This change emphasizes that drams are the only legal tender in the Republic of Armenia, and payments with crypto assets are permitted only in strictly defined cases.
Article 356 of the Code (“Currency of Monetary Obligations”) has also been supplemented with a new Part 5, which states: The use of crypto-assets when making settlements with obligations in the territory of the Republic of Armenia is prohibited, with the exception of electronic money tokens provided for by the Law "On Crypto-Assets". This amendment aims to prevent the free circulation of crypto-assets in the territory of the Republic of Armenia, maintaining their limited scope of applicability, while establishing exceptions in closed ecosystems (for example, in loyalty programs or platforms with consumer tokens).
These additions and amendments are aimed at maintaining financial stability, ensuring the primacy of the dram as the national currency, as well as introducing a controlled and limited regime for crypto-assets, with exceptions permitted by law.
Article 142 of the Code shall be supplemented with a part 5 with the following content:
Article 142. Dram (currency)
5. Payments with crypto-assets are prohibited in the territory of the Republic of Armenia, with the exception of electronic money tokens provided for by the Law "On Crypto-Assets".
Article 356 of the Code shall be supplemented with a Part 5 with the following content:
Article 356. Currency of Monetary Obligations
"5. The use of crypto-assets when making settlements with obligations in the territory of the Republic of Armenia is prohibited, with the exception of electronic money tokens provided for by the Law "On Crypto- Assets."
Article 589, Part 3 of the Code shall be amended as follows:
Article 589. Barter agreement
Old version.
3. It is prohibited to transfer other goods (property ) that are not crypto-assets in exchange for crypto-assets under an exchange agreement. Any agreement concluded in violation of the requirements of this clause is null and void.
New version.
3. It is prohibited to transfer other goods (property) that are not crypto-assets in exchange for crypto-assets under an exchange agreement. For the purposes of this part, property shall not include funds to which the regulations on the purchase and sale of crypto-assets apply. Any contract concluded in violation of the requirements of this part shall be null and void. The requirements set forth in this part shall not limit:
1) the use of consumer tokens to purchase any product or use a service offered by the issuer of consumer tokens;
2) the use of crypto-assets to purchase a product or service that the acquirer has the right to use only to purchase products or services offered by a group of persons carrying out entrepreneurial activities in a contractual relationship with the issuer.
PART V. CUSTOMS SECTOR
(This section of legal news includes legal news related to the customs sector for July 2025)
1. On Amendments to the Law "On Control over the Export of Dual-Use Goods, Their Transit Through the Territory of the Republic of Armenia, as Well as the Transfer of Dual-Use Information and Results of Intellectual Activity"
Name of the legislative act:
On Amendments to the Law "On Control over the Export of Dual-Use Goods, Their Transit Through the Territory of the Republic of Armenia, as Well as the Transfer of Dual-Use Information and Results of Intellectual Activity"
https://www.arlis.am/hy/acts/203069
Change status:
This law shall enter into force on July 1, 2025.
Which legislative act was amended by the adoption of the above-mentioned act:
As a result of the adoption of this Law, an amendment was made to the Law "On Control over the Export of Dual- Use Goods, Their Transit Through the Territory of the Republic of Armenia, as Well as the Transfer of Dual-Use Information and Results of Intellectual Activity" of April 8, 2010.
What do the changes concern?
The amendment to this Law concerns the clarification of the procedure for control of the export and transit of dual- use goods and information. It is established that the relevant expert opinion must be drawn up and submitted to the State Revenue Committee in accordance with the procedure established by the government decision. The State Revenue Committee is obliged to publish on its website, based on these opinions, a list of goods that are not considered controlled, and to update the list, taking into account the amendments made to legal acts.
Article 6 of the Law HO-42-N of April 8, 2010 "On Control over the Export of Dual-Use Goods, Their Transit Through the Territory of the Republic of Armenia, as Well as the Transfer of Dual-Use Information and Results of Intellectual Activity" shall be supplemented with the following part 4:
"4. The persons specified in Part 2 of this Article shall prepare and submit to the Committee the expert opinion to be provided to the State Revenue Committee of the Republic of Armenia (hereinafter referred to as the Committee) in accordance with the procedure established by the decision of the Government of the Republic of Armenia. Based on the information received, the Committee shall maintain and publish on its official website, by the tenth working day following each month, in an incremental manner, a list of goods for which, in accordance with Part 3 of this Article, an expert opinion has been issued stating that they are not goods included in the list of controlled goods and controlled intangible assets. In the event of amendments to the list of controlled goods and controlled intangible assets, the Committee shall ensure the removal of those goods from the list specified in this Part that have been included in the list of controlled goods and controlled intangible assets from the moment the amending legal act enters into force."
PART VI. TRADE AND SERVICES SECTOR
(This section of legal news includes legal news related to the trade and services sector for July 2025)
1. On Amendments and Supplements to the Law "On Trade and Services"
Name of the legislative act:
Law of the Republic of Armenia HO-207-N of 14.07.2025 on Amendments and Supplements to the Law "On Trade and Services"
https://www.arlis.am/hy/acts/209454/latest
Change status:
This law was signed on July 14, 2025 and enters into force on August 1, 2025.
Which legislative act was amended by the adoption of the above-mentioned act:
As a result of the adoption of this Law, a change has occurred in the "Yer In the Law "On Trade and Services".
What do the changes concern?
We would like to inform you that a number of amendments to the Law "On Trade and Services" have entered into force, the purpose of which is to more clearly regulate the requirements for the presentation of product prices, the status of e-commerce platforms, as well as the terms of payment for agricultural products.
In particular, the law establishes the concepts of “selling price”, “unit price” and “electronic trading platform”. The selling price is hereinafter presented as the final price set for a unit or a certain quantity of a product, including all applicable taxes and mandatory payments. The unit price is set for a specific unit of measurement, again including taxes. An electronic trading platform is considered to be a software solution (website, application, etc.) through which a consumer can conclude a contract with economic entities or other persons electronically.
The new price presentation rules stipulate that when displaying a product for sale, its name, selling price, and unit price must be presented. The unit price is not required to be indicated in some exceptional cases, for example, if the product is sold in small quantities or as a collection. In some cases, in particular in markets, fairs, and exhibition sales, it is allowed to sell the product without complying with these requirements, with the exception of commercial facilities operating in these places.
If the product is sold together with liquid, the unit price is calculated based on the net weight of the liquid. In addition, if additional services are provided in connection with the sale, such as delivery or on-site service, their prices are presented separately. If a package of services or works is sold, the individual prices of the services included in that package or the logic for calculating the prices must be indicated. The same price presentation requirements also apply to goods and services sold on electronic commerce platforms. These changes are aimed at ensuring price transparency, promoting the use of modern trading tools, and guaranteeing the financial protection of agricultural producers..
To supplement Part 1 of Article 2 of the Law with the following content, paragraphs 33-35:
Article 2. BASIC CONCEPTS
1. For the purposes of this law, the main concepts of trade are:
"33) selling price - the final price set for a unit of goods or a certain quantity of goods, including taxes and other mandatory payments applicable to the goods;
34) unit price: the final price set for a unit of measurement defined by law (one kilogram, one liter, one meter, one square meter, one cubic meter or other unit of measurement accepted in business practice for a specific product), including taxes and other mandatory payments applicable to the product.
35) electronic trading platform - software, including a website or part thereof, an electronic application, which is operated by or on behalf of a seller and enables consumers to conclude contracts with economic entities or other persons electronically.
To supplement the law with the following content:
Article 9.7: Article 9.7. Rules for presenting the price of goods
1. When displaying a product for sale, the name, selling price, and unit price of each product must be presented.
2. The requirement to indicate the unit price in Part 1 of this Article does not apply to the following goods:
1) a product whose selling price coincides with the unit price;
2) a product in production packaging, the volume of which does not exceed 50 milliliters or weight - 50 grams;
3) a set consisting of different goods, if the value share of each item included in the set does not exceed 90 percent of the total price of the set.
3. The requirement to indicate the selling price in Part 1 of this Article does not apply to unpackaged goods.
4. The requirements of Part 1 of this Article do not apply to goods sold or displayed for sale in consumer goods, agricultural products and animal markets, fairs (vernisages) and exhibition and trade fair venues (except for trade facilities operating in the aforementioned locations).
5. If the sale of a product occurs together with a liquid other than its intended consumer purpose, the unit price of the product is calculated based on the net weight of the product without liquid.
6. If the sale of the product also implies the provision of another additional service (delivery, maintenance, etc.), then the fee for that service is also presented separately.
7. Except for cases of provision of additional services related to the sale of goods, in the case of service provision or work performance packages, the prices of individual services or works included in those packages must be presented, and if this is not possible, the logic of calculating the prices.
8. The rules of this article also apply to goods sold, services provided and works performed on an electronic trading platform .
The law should be supplemented with the following content:
Article 15.14: Article 15.14. Terms and procedure for payment for agricultural products
1. Payments provided for in the settlement documents or contract by an economic entity purchasing agricultural products shall be made no later than the date of issuance of the settlement documents by the supplier, and in the absence of a settlement document, within 30 calendar days from the date of delivery of the agricultural products.
PART VII. PROTECTION OF ECONOMIC COMPETITION SECTOR
(This section of legal news includes legal news related to the protection of economic competition for July 2025)
1. On Amendments and Supplements to the Law "On Protection of Economic Competition"
Name of the legislative act:
Law HO-205-N on Amendments and Supplements to the Law "On Protection of Economic Competition"
https://www.arlis.am/hy/acts/209456/latest
Change status:
This law was signed on July 14, 2025 and enters into force on August 1, 2025.
Which legislative act was amended by the adoption of the above-mentioned act:
As a result of the adoption of this Law, a change was made to the Law "On Protection of Economic Competition".
What do the changes concern?
We would like to inform you that from August 1, 2025, amendments to the Law "On Protection of Economic Competition" will enter into force, which are of significant importance both in terms of content and legal and political aspects. The amendments define various manifestations of behavior that violate the interests of consumers, the prohibition of which is provided for in the new chapter of the law.
The Commission is recognized as the central body for the protection of consumer interests, with appropriate powers. A special procedure is also established for conducting proceedings on violations against consumer interests, including in the case of violation of the presentation of the price of goods, under a simplified procedure. Another innovation is that the Commission is given the opportunity to warn economic entities in case of conduct that harms the interests of consumers or the risk of it. In addition, the possibility of applying interim measures is envisaged in order to prevent the continuous or irreversible consequences of the violation. The law stipulates that for violations against the interests of consumers, a fine of up to 5 percent of the previous year’s revenue of the economic entity may be imposed.
The amendments also clarify the unobserved cases of concentration of certain transactions, as well as provide new definitions for certain concepts, such as base interest rates, consumer decision on the transaction, etc. The procedure for the Commission's inspections is also clarified, including the forms of protocols, attached materials, and the order of indicating objections.
Overall, these changes strengthen the position of the consumer in the context of the actions of economic entities and state bodies, and increase the role of the Commission as an institution that balances and controls the consumer market.
To supplement Article 3, Part 1 of the Law with the following content, paragraphs 11.1 and 11.2:
Article 3. Basic concepts and terms used in the law
11.1) Consumer protection: a set of measures implemented by the Commission to prevent, disrupt or eliminate such behavior, action or inaction, including their consequences, which harm or may harm the interests of consumers or groups of consumers of an indefinite scope.
11.2) transactional decision: any decision of the consumer relating to the acquisition or possible acquisition of a product, the terms of payment, storage or disposal, or the exercise of contractual rights related to the product, regardless of whether the consumer will acquire the product in question or not .
3) In paragraph 15, after the word "Competition", add the words "and the interests of consumers";
4) In point 17, after the words “unfair competition”, add the words “violations against the interests of consumers”.
5) Paragraph 32 shall be amended as follows:
"32) State aid granting body - a state body, as well as all bodies or organizations or officials authorized to provide state aid at the expense of public finances or public resources within the meaning of this Law, or in the case of state aid provided by a Government decision, the state body that submitted the draft Government decision on the provision of the relevant state aid for consideration by the Government. to supplement point 36 with the following content: 36) base interest: interest payable at one and a half times the base rate of the banking interest rate set by the Central Bank. Paragraph 11 of Part 3 of Article 12 of the Law shall be amended as follows:
Old version.
11) failure to make payments stipulated in the settlement documents or contract by an economic entity purchasing agricultural products with a strong negotiating position, within 30 calendar days from the date of issuance of settlement documents by the supplier, or in the event that no settlement document is issued, from the date of delivery of the agricultural products;
New version.
11) Allowing a delay in the payment period established by Article 15.14 of the Law "On Trade and Services" by an economic entity purchasing agricultural products with a strong bargaining position, except if the economic entity purchasing agricultural products has allowed a delay of up to 30 calendar days following the payment period established by paying in full for the agricultural products and the base interest calculated for each day of delay.
In Article 13, Part 9, Paragraph 1 of the Law, amend it as follows:
Article 13. The concept of concentration of economic entities
9. The following are not considered to be concentrations:
Old version.
1) reorganizations of economic entities, actions or transactions specified in Part 1 of this Article, which take place between economic entities constituting a group of persons in accordance with Article 4 of this Law, except for the cases provided for in Points 8 and 9 of Part 1 of Article 4 of this Law, if the conditions of Article 14 of this Law are met.
New version.
1) reorganizations, actions or transactions of economic entities specified in Part 1 of this Article, which take place between economic entities constituting a group of persons on the grounds provided for in Points 1, 2 and 12 of Part 1 of Article 4 of this Law.
to be supplemented with the following content in point 5:
5) Acquisition of a share in the statutory (share) capital of an economic entity registered in the Republic of Armenia by an economic entity holding at least 20 percent of the statutory (share) capital of the same economic entity, if as a result of the transaction the share of the given economic entity does not constitute 50 percent of the statutory (share) capital of that economic entity.
To supplement the Law with Chapter 9.1 with the following content:
CHAPTER 9.1
VIOLATIONS AGAINST CONSUMER INTERESTS
Article 26.1. Practices that violate the interests of consumers
1. Any behavior, action or inaction of an economic entity that affects or may affect the interests of consumers or a group of consumers to an indefinite extent and that contradicts this Law, other laws, other regulatory legal acts or business practices or violates the principles of good faith, honesty, fairness, truth or impartiality towards consumers is considered a practice that violates the interests of consumers.
2. Practices that violate the interests of consumers are prohibited.
3. Any behavior, action or inaction that meets the characteristics of Part 1 of this Article shall be considered a practice that violates the interests of consumers, including:
1) Unfair commercial practices as provided for in the Law "On Protection of Consumer Rights";
2) advertising that is contrary to the law , including advertising that is dishonest or illegal or that violates reliability or propriety;
3) violation of the requirements set forth in connection agreements or general terms and conditions concluded with consumers ;
4) violation of the requirements for the quality, quantity and other characteristics of the product ;
5) Violation of the rules for presenting the price of goods as defined in the Law "On Trade and Services".
4. The Commission shall assess the existence of characteristics of practices that violate the interests of consumers.
5. This article does not apply to conduct, action or omission that may cause harm to the life, health, safety of consumers, public or state security or the environment.
6. The concepts defined in paragraph 2 of part 3 of this Article shall be applied within the meaning of the Law "On Advertising".
Article 27 of the Law shall be amended as follows:
Old version.
Article 27. Status and functions of the Commission
1. The Commission is an autonomous body that ensures freedom of economic activity, free economic competition, the necessary environment for the development of fair competition and entrepreneurship, and protects the interests of consumers.
New version.
Article 27. Status and functions of the Commission
1. The Commission is an autonomous body that ensures freedom of economic activity, free economic competition, the necessary environment for the development of fair competition and entrepreneurship, and protects the interests of consumers.
2. The Commission is the central body responsible for protecting consumer interests.
3. The Commission, as the central body responsible for protecting consumer interests, shall:
1) within the limits of its jurisdiction, cooperates with international organizations operating to protect the interests of consumers, based on international treaties of the Republic of Armenia and documents regulating sectoral cooperation;
2) cooperates, within the limits of its jurisdiction, with the bodies of foreign states implementing the protection of consumer interests, within the framework of which it is authorized to receive and provide them with information in accordance with the established procedure;
3) cooperates with other competent authorities."
To add a new part 4 to Article 49 of the Law with the following content:
Article 49. Conducting an inspection by the Commission
4. A protocol shall be drawn up in duplicate in the form established by the Commission based on the results of the inspection. Photographs, documents, electronic media and/or other materials may be attached to the inspection protocol, with a corresponding note made in the protocol. The protocol shall be signed by the person conducting the inspection and the economic entity, the employee selling goods, providing services and/or making monetary payments on behalf of the economic entity, or another representative of the economic entity. In the event of an objection to the inspection results, the person signing the protocol shall make a note of this in the protocol. One copy of the protocol shall be handed over to the economic entity.
Article 69 of the Law shall be supplemented with the following parts 2 and 3:
Article 69. Assessment of a notifiable concentration
2. In case the participants in the notifiable concentration assessment proceedings submit false, unreliable, incomplete or misleading information in the declaration or during the proceedings, or if the information requested by the Commission is not submitted, the Commission shall make a decision to dismiss the application as ineffective.
3. The Commission may decide to dismiss the concentration application at any stage of the proceedings.
Article 77 of the Law shall be supplemented with the following part 7:
Article 77. Reports of individuals and legal entities
7. The report will not be discussed if it contains apparently offensive expressions.
Article 32. Article 79 of the Law shall be supplemented with the following content, part 2.1:
Article 79. Discussion of the reasons for initiating proceedings for an offense in the field of economic competition
2.1. In the context of considering the grounds for initiating proceedings, in case of violation of the obligation to provide information to the Commission by economic entities, the Commission may consider the fact of the apparent presence of elements of a violation in the behavior or actions of the given economic entity confirmed and initiate proceedings.
To supplement the law with Article 82.1 with the following content:
Article 82.1. Giving a warning
1. In the event of apparent characteristics of conduct, action or inaction leading to the prevention, restriction, prohibition of economic competition or unfair competition or harm to the interests of consumers, or the existence of a threat thereof, a warning may be issued to economic entities, state bodies or their officials.
2. The details of the procedure for warning economic entities, state bodies or their officials in the event of apparent signs of conduct, action or inaction leading to the prevention, restriction, prohibition of economic competition or unfair competition or harm to the interests of consumers, or the threat thereof, shall be established by the Commission's Rules of Procedure.
3. If the apparent characteristics of the behavior, action or inaction leading to the prevention, restriction, prohibition of economic competition or unfair competition or harm to the interests of consumers described in the warning are not eliminated by economic entities, state bodies or their officials within the period set by the Commission, proceedings may be initiated.
To supplement the law with the following content in Article 83.1:
Article 83.1. Decision on the application of an interim measure
1. In order to prevent possible irreversible or serious consequences resulting from actions or conduct of state bodies and their officials that contain apparent features of anti-competitive agreements, abuse of dominant position and anti-competitive practices in relation to procurement, the Commission may adopt the following decisions on the application of interim measures:
1) to stop the conduct containing apparent elements of a violation until a final decision is made in the proceedings, restoring the situation that existed before the conduct containing apparent elements of a violation or in other ways specified by the Commission's decision;
2) suspend the process of concluding a contract or its operation as a result of the purchase.
2. A decision to impose an interim measure may be taken at any stage of the proceedings initiated by the Commission regarding an infringement and shall remain in force until the act concluding the proceedings enters into force.
3. The Commission may apply more than one interim measure within the same proceeding.
4. The decision to apply an interim measure shall enter into force upon its adoption and shall be subject to execution by the Enforcement Service in accordance with the procedure established by the Law "On Enforcement of Judicial Acts".
5. The decision to apply an interim measure is submitted to the Enforcement Service by a letter from the Chairman of the Commission.
6. The decision to apply an interim measure shall be returned to the Enforcement Service on the basis of a letter from the Chairman of the Commission if:
1) the need to apply an interim measure has disappeared ;
2) The decision of the Commission has been declared invalid or revoked.
7. The decision to impose an interim measure may be appealed. An appeal of the decision does not suspend its execution.
To supplement the Law with the following content in Chapter 17.1:
CHAPTER 17.1 PROCEEDINGS ON VIOLATIONS AGAINST CONSUMER INTERESTS
Article 91.1. Procedure for conducting proceedings regarding violations against the interests of consumers
1. Proceedings on violations of the law against the interests of consumers shall be conducted in accordance with the procedure for conducting proceedings on violations of the law in the field of economic competition under this Law, in compliance with the special rules established by this Chapter.
Article 91.2. Participants in proceedings on an offense against the interests of consumers
1. The participants in the proceedings on an offense against the interests of consumers are:
1) the defendant in the proceedings ;
2) competent authorities.
Article 91.3. Simplified proceedings regarding violation of the rules for presenting the price of goods
1. In case of apparent violation of the rules established by the Law "On Trade and Services" in the presentation of the price of a product, the Secretary General of the Commission shall send a written notification to the economic entity.
2. Information received by the Commission in any form regarding an apparent violation of the rules established by the Law "On Trade and Services" regarding the presentation of the price of a product shall be a reason for sending a notification.
3. The notice shall contain a description of the apparent violation, a description of the actions to be taken by the economic entity and the consequences, as well as an explanation of the consequences of the failure of the economic entity to take the actions to be taken.
4. In case of acknowledging the fact of committing a violation, the economic entity shall, within two weeks after receiving the notification, submit to the Commission information on the cessation of the violation and the payment of fifty thousand drams. In case the written notification is sent for the first time, the requirement for the economic entity to pay fifty thousand drams does not apply.
5. In the event of the actions provided for in Part 4 of this Article, the written notification shall have the force of an administrative act that has entered into force from the day following the submission of the relevant information to the Commission, and the economic entity may not later deny the fact of its having committed a violation.
6. In case of failure to take the actions provided for in Part 4 of this Article, the Commission may initiate proceedings regarding a violation of the law against the interests of consumers.
Article 93 of the Law to supplement with the following content in section 7.1:
Article 93. Amounts of fines imposed for violations in the field of economic competition
7.1. The amount of the fine imposed for an offense against the interests of consumers shall be up to five percent of the revenue of the economic entity in the year preceding the offense, taking into account the specifics established by the methodology for selecting a measure of responsibility and calculating the fine.
1. On Amendments and Supplements to the Law "On Protection of Consumer Rights"
Name of the legislative act :
Law HO-206-N on Amendments and Supplements to the Law "On Protection of Consumer Rights"
https://www.arlis.am/hy/acts/209485/latest
Change status :
This law was signed on July 14, 2025 and enters into force on August 1, 2025.
Which legislative act was amended by the adoption of the above-mentioned act:
As a result of the adoption of this Law, a change was made to the Law " On Protection of Consumer Rights ".
What do the changes concern?
Would like to inform you that there have been changes to the Law "On Protection of Consumer Rights", which will come into force on August 1, 2025. The changes are significant and are aimed at further clarifying and protecting consumer rights.
The law rephrases the concept of "consumer", emphasizing that a consumer is a natural person who purchases goods or uses services for purposes other than their professional or business activities. Sole proprietors and even individuals can now be classified as “producer”, “performer” or “seller” if they carry out relevant activities. This is important for expanding the scope of consumer protection.
The law has been supplemented with new concepts that describe the modern consumer environment: the terms “average consumer”, “vulnerable consumer”, “electronic trading platform”, “marketing pyramid”, “ecological certification” and others have been added. These terms are important, as the law will now take into account the characteristics of different groups of consumers, as well as the evolving practices of online trading. A new article has been added, which enshrines the consumer's right to free choice. This means that the consumer must choose a product or service without pressure, deception, or haste.
The law has also been supplemented with a whole new chapter on the prohibition of unfair commercial practices. It now clearly defines in which cases the behavior of an economic operator is considered unfair, for example, if it contradicts the principles of honesty, fairness and truth and can influence the consumer’s decision. Examples of misleading and aggressive practices are described in detail, including the dissemination of false or incomplete information, advertisements that confuse the consumer, marketing schemes, labeling a product “free” when in fact there are hidden fees, as well as exerting pressure on the consumer to make a decision.
Finally, the law stipulates that in the event of such unfair practices, the consumer can avail himself of all the protective measures prescribed by law. These changes aim to provide more modern, realistic and comprehensive legal protection for consumers, especially in the context of digital and e-commerce.
Article 1, Part 1 of Law HO-197 of June 26, 2001 "On the Protection of Consumer Rights" (hereinafter referred to as the Law):
Article 1. BASIC CONCEPTS
The main concepts used in this law are:
1) The concept of "consumer" should be defined as follows: " consumer" means a natural person who is acting and acting outside the scope of his trade, business, craft or profession."
2) replace the word "product" in the concept of "undefined circle of consumers" with the word "goods";
3) after the words “individual entrepreneur” in the concept of “producer” add the words “or natural person”;
4) to formulate the concept of "performer" as follows: " performer - a legal entity or individual entrepreneur or natural person performing work or providing a service."
5) The concept of "seller" should be defined as follows: " seller - a legal entity or individual entrepreneur or natural person selling goods to consumers."
6) to supplement with new concepts with the following content:
" Economic entity" means a natural person, legal entity, sole proprietor, other organization, its representative office or branch, group of persons or association of persons.
average consumer : a reasonably informed person, taking into account social, cultural, linguistic and other factors, or in the context of belonging to a particular group of consumers;
consumer group , a group that can be personalized with a certain characteristic.
vulnerable consumer : a consumer who is more sensitive due to mental or physical problems, age or other characteristics;
electronic trading platform , used within the meaning of the Law "On Trade and Services";
Rating : a relative assessment given to goods (works, services) on an electronic trading platform, collected, presented and addressed by the seller, regardless of the technological means used.
Commercial practices of an economic entity towards the consumer : any action, inaction, behavior, commercial communication, advertising and other measures aimed at the sale of a product (work, service) of an economic entity, which are directly related to advertising, selling, supplying the product (work, service) to the consumer, providing the service or performing the work;
Influence on consumer behavior : a manifestation of a business entity's commercial practices towards a consumer, due to which the business entity directly or indirectly influences or may influence the consumer's informed decision-making process, thereby inducing the consumer to make a decision regarding the transaction that he would not have made otherwise.
Code of Conduct : a set of rules of conduct or an agreement established by an economic entity or a group of economic entities, to which the economic entity that has joined undertakes to observe the rules established by the code of conduct within the framework of its commercial practices towards consumers. commercial communication : any form of communication aimed at promoting the economic or entrepreneurial activities of an economic entity;
invitation to purchase : commercial communication, advertising, which indicates the features and price of a given product (work, service) in a manner appropriate to the commercial communication medium used, thereby providing the consumer with the opportunity to make a purchase.
Undue influence : the exercise of pressure by an economic entity on a consumer, which may also be manifested without the use of physical force or the threat of physical force, in a manner that limits or may limit the consumer's ability to make a voluntary decision.
Transactional decision : any decision of the consumer relating to the acquisition or possible acquisition of a product (work, service), the terms of payment, storage or disposal of the product (work, service), or the exercise of contractual rights related to the product (work, service), regardless of whether the consumer will acquire the given product (work, service) or not.
Marketing pyramid : a scheme in which the consumer's opportunity to receive material benefits is determined more by attracting new consumers than by selling a product (work, service).
Ecological claim : a claim in the form of text, images, graphics or any other means within the framework of commercial communication, including labels, product (work, service) names, brand names, trademarks, which states or creates the impression that the seller, product (work, service), product group, trademark owner has a positive or zero impact on the environment or causes less environmental damage than other sellers, products (work, services), trademark owners or product groups, or the latter have improved their impact on the environment over time.
Functionality - the ability of a product to perform functions aimed at serving its intended purpose. "functional element" means any component of a product, including a spare part, that needs to be periodically updated or replaced to ensure the required level of functionality of the product."
To supplement the law with Article 4.1 with the following content:
Article 4.1. The consumer's right to free choice
1. The consumer has the right to freely choose a product (work, service) without any pressure or restriction .
To supplement the Law with the following content, Chapter III.1:
CHAPTER III.1
UNFAIR TRADE PRACTICE
Article 37.1. Prohibition of unfair commercial practices
1. A commercial practice is considered unfair if it contradicts the principles of good faith, honesty, fairness, truth or impartiality and has or may have an impact on the behavior of the average consumer towards the product (work, service) to which that practice is directed, or on the behavior of the average consumer of a group, when the commercial practice is directed at a specific group of consumers.
2. Commercial practices that have or may have an impact on the behavior of vulnerable consumers and which the economic operator could have foreseen shall be assessed from the perspective of that vulnerable consumer.
3. Unfair commercial practices are the cases provided for in Articles 37.2 and 37.3 of this Law, as well as other actions, inactions or behavior that meet the characteristics of Part 1 of this Article.
4. Unfair commercial practices of an economic entity towards the consumer are prohibited.
Article 37.2. Misleading action and omission
1. An act is considered misleading if it contains any false, unreliable, distorted information, or the information is presented in a way that, although factually correct, may create a false impression about the economic entity, its activities or the product (work, service) offered, the measures contributing to its advertising, distribution or sale, the geographical origin or production or sale process of the product (work, service), its suitability for a particular purpose, its shelf life, quality, quantity or other characteristics, the terms of offer or delivery or the price or the method of its calculation, or the rights of the consumer, which misleads or is likely to mislead the average consumer and induces or is likely to induce the consumer to take a decision regarding the transaction that he would not have taken otherwise.
2. Inaction is considered misleading if an economic entity does not provide or does not provide relevant information about itself, its activities or the product (work, service) offered, measures promoting its advertising, distribution or sale, the geographical origin or production or sale process of the product (work, service), its suitability for a particular purpose, quality, quantity or other characteristics, the terms of offer or delivery or the price or the method of its calculation or the rights of the consumer, in a clear, unambiguous, incomplete or uncertain manner or at the wrong time, which is necessary for the consumer to make a decision on the transaction and induces or may induce the consumer to make a decision on the transaction that he would not have made otherwise.
3. In the event of a procurement invitation, the economic entity, in addition to the information provided for in Part 2 of this Article, shall also provide the following information:
1) the main characteristics of the product (work, service):
2) the price of the product (work, service), in accordance with the procedure established by law, the price of all additional freight, deliveries or postal services, and in case of impossibility, the circumstance of being subject to payment;
3) payment , delivery, complaint submission procedure and investigation policy;
4) in the case of transactions that reserve the right to terminate or cancel, the existence of such a right;
5) in the case of a product (work, service) presented on an electronic trading platform, information on whether the product (work, service) is offered by the seller or another person, based on the announcement made to the electronic trading platform;
6) In the event that consumers have the opportunity to search for a product (work, service) offered by sellers or other persons on an electronic trading platform using keywords, phrases or in another way, regardless of whether the consumer will purchase the given product (work, service) or not, general information on the classification criteria for the products (work, services) displayed in the search results and their relative importance shall be presented in a special section of the electronic trading platform interface reflecting the query results.
7) In the event that consumers provide ratings for a product (work, service) on an electronic trading platform, the seller or other person must provide information on whether those ratings were given by consumers who actually used or purchased the product (work, service).
8) in the case of a service for comparing goods (works, services), the method of comparing goods (works, services), information on the goods (works, services) being compared and the economic entities offering them, as well as the criteria by which the information is regularly updated.
4. In any case, a misleading commercial practice shall be considered to be carried out by an economic entity:
1) declaring that it is a signatory to the code of conduct when the business entity is not actually a signatory to the code of conduct;
2) displaying a certification or other equivalent mark, declaration of conformity, certificate of conformity, or any other document on the conformity of a product (work, service) with the requirements established by law, without its presence;
3) ecological certification of the entire product (work, service) or the entire economic activity of an economic entity, when it refers to a specific characteristic of the product (work, service) or a specific direction of the seller's economic activity;
4) declaring that the code of conduct has been approved by a state body, in the event that the code of conduct has not been approved by any state body;
5) violation of obligations undertaken under the code of conduct ;
6) declaring that one's commercial practices or products (works, services) have been approved or permitted by an authorized state body or private company, when in fact this is not the case, or making such a declaration without complying with the conditions required for approval or permission;
7) an invitation to purchase a product (work, service) at a clearly defined price, when there is objective reason to believe that it will not be able to carry out deliveries, either personally or through another supplier, within reasonable time frames and in quantities resulting from the advertisement of the product (work, service);
8) an invitation to purchase a product (work, service) at a clearly defined price, then refusing to show the advertised product to the consumer or to take orders for it, to deliver it within a reasonable time, or to show a sample of the product with defects, with the intention of advertising another product (work, service);
9) creating the false impression that the product (work, service) will be available for a strictly limited period of time, depriving the consumer of the opportunity or sufficient time to make an informed decision on the transaction immediately ;
10) declaring or otherwise creating a false impression that a product (work, service) can be legally sold when in fact it cannot;
11) presenting the rights granted to consumers by law and the fulfillment of the requirements established by law regarding the product (work, service) and its sale as a distinctive feature of the offer of an economic entity;
12) presenting editorial material for the purpose of advertising a product (work, service) through the media or other means of disseminating information, when the economic entity has paid for it, but has not clarified this fact in a manner clearly identifiable for the consumer (through images or audio means);
13) displaying online search results for goods (works, services) by consumers without clearly disclosing information about paid advertising or payment made in order to obtain a higher ranking for their classification;
14) making a false statement about the risk, nature and extent of the risk to the safety of the consumer or his family in the event of not purchasing the product (work, service);
15) declaring that an economic entity is going to cease its entrepreneurial activities or move to another area, when in fact this is not the case;
16) declaring that a product (work, service) can contribute to winning games of chance;
17) creating a false impression or spreading a statement that a product that is not considered a medicine can help treat diseases, functional disorders or developmental defects;
18) creating, organizing or advertising a marketing pyramid, in which case the consumer is given the impression that the possibility of receiving compensation is primarily conditioned by the involvement of other consumers in the marketing pyramid, rather than by the sale or consumption of goods (works, services);
19) conveying materially inaccurate information about market conditions or the possibility of finding a product (work, service) in order to induce the consumer to purchase a product (work, service) under unfavorable conditions that differ from market conditions;
20) announcing a competition or prize incentive without awarding the described prizes or their equivalent;
21) presenting the product (work, service) as "free of charge", "free of charge", "without payment" or in a similar manner, if the consumer is obliged to make other payments, except for the costs associated with receiving the product (work, service) or its delivery;
22) including documents that create the impression of a sales invoice for a product (work, service) in the purchase process through an electronic trading platform, which creates the impression in the consumer that the product has already been purchased, when in fact it has not;
23) stating or creating a false impression that an economic entity is not acting for the purposes of its economic activity, or falsely representing itself as a consumer;
24) reselling event tickets to consumers if the reseller has acquired them using automated means, circumventing any restrictions on the number of tickets or other rules established for the acquisition of tickets;
25) a statement that the ratings presented on the electronic trading platform regarding the product (work, service) were given by consumers who actually used or purchased the product (work, service), in the event that proportionate and reasonable steps were not taken to establish that the ratings were formed by those consumers;
26) creating false ratings or implementing other misleading measures on an electronic trading platform for the purpose of promoting the sale of goods (works, services) by an economic entity or other persons on its behalf, including presenting a false number of views;
27) failure to provide information to the consumer regarding the reduction in product functionality as a result of a software update;
28) presenting software updates as a necessary condition for maintaining functionality when they are aimed at improving the functionality of individual functional elements of the product;
29) failure to provide information to the consumer that individual functional elements of the product reduce the shelf life of the product, when the economic entity was aware of this;
30) providing false information to the consumer regarding the expiration date of the product ;
31) providing false information about the possibility of repairing a product when the purchased product cannot be repaired;
32) inducing the consumer to prematurely replace or update individual functional elements of the product without technical necessity;
33) failure of the seller to provide the consumer with information that the replacement or update of the functional elements of the product by the consumer will lead to a decrease in the functionality of the product;
34) providing false information to the consumer that the replacement or updating of functional elements of the product by other economic entities will lead to a reduction in the functionality of the product.
Article 37.3. Aggressive commercial practices
1. A commercial practice is considered aggressive if, by means of harassment, coercion, including the use of physical force or undue influence, it significantly impairs or is likely to impair the average consumer's right to make a free choice, thereby inducing or is likely to incite the average consumer to make a purchasing decision that he would not have made otherwise.
2. When determining the circumstances of harassment, coercion, including the use of physical force or undue influence, by an economic entity towards a consumer within the framework of its commercial practices, the following circumstances shall be taken into account:
1) the time, place, nature and (or) continuity of their implementation;
2) using threatening or offensive language or displaying behavior;
3) the economic entity's exploitation of an accident or a circumstance of which it is aware and which may influence the consumer's decision regarding the transaction;
4) the creation of extra-contractual artificial obstacles to the exercise of consumer rights by an economic entity in the event that the consumer wishes to exercise his rights provided for in the contract, including the right to terminate the contract or replace it with another product or to purchase it from another economic entity;
5) Threatening to take illegal action.
3. In any case, aggressive commercial practices are considered to be:
1) creating the impression by an economic entity that the consumer cannot leave the sales area, including the electronic trading platform, without purchasing the product (work, service);
2) making personal visits to the consumer's home, regardless of the consumer's disagreement with this, or making continuous and unsolicited offers to purchase a product (work, service) by telephone, e-mail or other means of communication, except in cases where they are conditioned by the need to fulfill contractual obligations;
3) a direct appeal in advertising to a child to purchase the advertised product (work, service) or to persuade a parent or other adult to purchase it;
4) Supplying an unsolicited product (work, service) to a consumer by an economic entity and demanding immediate or deferred payment or its return;
5) informing the consumer by the economic entity that the activities of the economic entity will be jeopardized if the latter does not purchase a product (work, service);
6) creating a false impression that the consumer has already won, will win, or will win a prize or receive another equivalent benefit upon performing a specific action, when in fact no prize or other equivalent benefit exists, or the action required to obtain it involves the payment of money or the incurring of other expenses."
The law shall be supplemented with the following content in Article 38.1:
Article 38.1
Protecting consumer rights against unfair trade practices
1. In every case of unfair commercial practices by an economic operator, the consumer has the right to use the protection mechanisms provided for by law .