Georgia will update its cryptocurrency laws to comply with EU regulations and legalise the sector.

September 1, 2022

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Georgia will update its cryptocurrency laws to comply with EU regulations and legalise the sector. The Georgian government has approved reforms to the legal framework of the Caucasian country’s financial sector, including additional rules for digital currency and fintech activities. The purpose of this action is to harmonize the legislation of Georgia with the legislation of the European Union. The government of Tbilisi presented a legislative package to the parliament to expand the regulatory framework for companies working with crypto assets. Minister of Economy and Sustainable Development Luvan Davitashvili said that this meeting is planned for the autumn session of the legislative body. He said in detail, alluding to the commercial media store.

According to Eleven Davidashvili, Georgia’s project law is integrated with integration with the three main orders of the EU payment for payment (PSD 2), capital requirements (CRT) and the provider of virtual property services (VASS). The report notes that this change in VASP’s authority to provide legal status to companies engaged in trading virtual assets and define their responsibilities and rights will be one of the most important steps towards sustainable regulation of Georgia’s crypto industry. Davidashvili emphasized: this is very important to create a legal environment for crypto services and crypto exchanges in Georgia. Georgia is trying to become a center of cryptocurrencies

The Minister of Economy of Georgia considers the harmonization of the country’s financial legislation with EU directives as the first step to achieve the ultimate goal of turning Georgia into a crypto hub. This vision is embodied in the strategy for the development of small countries for the period 2020-2025, which was approved by the executive power two years ago. Business Media notes that the new legal framework will facilitate the presence of major players in the global crypto industry in Georgia. Among them is the world’s leading exchange of digital assets Binance, which is considering opening a regional office in the country, but is still waiting for the implementation of the licensing regime. The latest regulatory changes come after Georgian Prime Minister Iraklii Garibashvili met with other major players in the crypto market, including blockchain company Ripple and another major cryptocurrency exchange, FTX. Both companies have expressed interest in opening offices in Georgia.

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