The Georgian government has approved amendments to the Caucasian state’s financial sector legal framework, including additional regulations for crypto and fintech activities. The move is aimed at aligning Georgian legislation with relevant EU provisions.
Georgian Parliament to Vote on Crypto Legislation in Next Few Months
A legislative package to expand the regulatory framework for companies dealing with crypto assets has been submitted to Parliament by the government of Tbilisi. Its adoption is planned for the fall session of parliament, announced Economy and Sustainable Development Minister Levan Davitashvili, quoted by Business Media news, where he elaborated.
We expect that in the fall, Georgia will have an updated law that will significantly develop the financial sector.
According to a statement by Levan Davitashvili, the bill prepared by the Georgian government will achieve convergence with three important European Union directives: the Payment Services Directive (PSD 2), the Capital Requirements Directive (CRD), and the Virtual Asset Service Providers Directive (VASPs) Coordinated.
This transfer of the VASPs Directive, which envisages granting legal status to entities involved in virtual asset transactions and defining their obligations and rights, is one of the most important steps towards sustainable regulation of the crypto industry in Georgia, according to thereport. It is “particularly important for the formation of a legal environment for cryptographic services and cryptographic exchange in Georgia,” Davitashvili stressed.
Georgia will strive to become a crypto hub
Georgia’s Economy Minister sees the synchronization of the country’s financial legislation with EU directives as the first move to reach the ultimate goal of making Georgia a crypto hub. The vision was introduced in the small country’s development strategy for the period 2020-2025, approved by the executive authority two years ago.
{Business Media also noted that the new legal framework will make it easier for major players in the global crypto industry to establish a presence in Georgia. Among them is Binance, one of the world’s leading digital asset exchanges, which is considering opening a regional office in the country but is still waiting for the licensing regime to be implemented.
The latest regulatory development comes after Georgian Minister Irakli Gharibashvili Primer met with other major participants in the crypto market, including representatives of blockchain company Ripple and another large cryptocurrency exchange FTX. Both companies expressed interest in establishing offices in Georgia.
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