Armenian and Georgian Central Banks Sign Supervision and Crypto Pact

The Central Bank of Armenia (CBA) and the National Bank of Georgia (NBG) have signed a memorandum of understanding on financial cooperation, formalising how the two regulators share information on supervision across banking, payments, securities and crypto-asset markets.

According to the CBA, as reported by ArmBanks on September 22, the agreement aims to strengthen financial stability in both countries, improve the transparency and resilience of the sector, and protect depositors and investors.

What the memorandum covers

• Licensing and supervision of financial institutions.
• Market conduct and consumer protection.
• Competition and crisis management.
• Payment systems and securities markets.
• Crypto-asset services and financial technology.
• Monetary policy.

The document sets procedures for information exchange and provides a basis for joint programmes between the two central banks.

Why cross-border supervision matters here

Armenia and Georgia share deep financial links. Georgian-owned banks operate in Armenia, and both countries have absorbed large inflows of people, capital and remittances since 2022. In Armenia, gross reserves reached a record $6.5 billion in August, according to the World Bank, while the CBA raised its policy rate to 6.75% on September 15, citing excess demand. In Georgia, the NBG made net foreign-currency purchases of $555.6 million in August.

Fast-moving capital flows raise the stakes for coordinated oversight – particularly in crypto-asset services and fintech, where licensing regimes are still evolving and firms often operate across both markets. The explicit inclusion of crypto in the MoU suggests both regulators want visibility over service providers that could arbitrage differences in their rules.

Implications for the sector

• Banks and groups operating in both countries can expect more consistent supervisory expectations and faster information requests between home and host regulators.
• Fintech and crypto firms should assume that compliance issues in one jurisdiction will be visible to the other.
• Crisis management cooperation reduces the risk of a disorderly response if a cross-border institution runs into trouble.

MoUs of this kind are standard among regional supervisors and do not harmonise rules. But given Armenia's and Georgia's growing role as regional financial and payments hubs, the agreement fills a practical gap in cross-border oversight.

Further Reading

• Armenia's Central Bank Raises Rate to 6.75% in First Hike Since 2022
• Armenia's Reserves Hit Record $6.5 Billion as Growth Reaches 7.7%

Photo: Unsplash (illustrative)