Georgia approves legislation for crypto regulation

The Minister of Economy and Sustainable Development noted that a package of bills has already been sent to Parliament, and amendments are planned for the fall session

31.08.2022 - 14:45

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2 min

What’s new? Georgian authorities have approved an updated legal framework for the financial sector, regulating the sphere of digital business and cryptocurrency trading. The Minister of Economy and Sustainable Development and Vice Prime Minister Levan Davitashvili disclosed this to News-Georgia. He noted that the package of bills has already been sent to the parliament, and the amendments are planned for the fall session.

Information on News-Georgia's website

What else did the minister say? He explained that the amendments provide for the integration of national legislation with the fundamental EU directives: the “Payment Services Directive” (PSD2), the “Capital Requirements Directive” (CRD), and the “Virtual Asset Service Providers Directive” (VASP).

The latter involves granting legal status to persons who take part in crypto asset trading. The directive defines their duties and rights, which will prevent the use of digital assets for money laundering and terrorist financing.

Davitashvili said that the VASP legislation is one of the most important steps leading to the regulation of the crypto industry in Georgia. He also stressed that synchronizing the country's legislation with EU directives is the first step toward transforming Georgia into a crypto hub in line with the 2020-2025 development strategy.

In April, Koba Gvenetadze, Governor of the National Bank of Georgia (NBG), said that the agency had started preparing a legislative framework for crypto regulation. He added that the regulator developed an initial draft of legislative changes in accordance with the requirements of the Financial Action Task Force (FATF). And in May, the NBG announced the release of a bill to regulate digital assets in the summer or fall of 2022.

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