The Georgia government has approved amendments to the legal framework for the Caucasian nation’s financial sector, which includes additional rules for crypto and fintech activities. The move aims to align Georgian law with relevant EU provisions.
Georgia’s Parliament Will Vote on Crypto Legislation in the Coming Months
A legislative package detailing the regulatory framework for companies dealing with crypto assets has been presented in parliament by the government in Tbilisi. Its adoption is planned for the fall session of the legislature, announced Levan Davitashvili, Minister of Economy and Sustainable Development. Quoted by the Business Media news outlet, he elaborated:
We expect that in the fall, Georgia will have updated legislation that will significantly develop the financial sector.
According to Levan Davitashvili’s statement, the draft law prepared by the Georgian government was designed to achieve convergence with three important EU directives – the Payment Services Directive (PSD 2), the Capital Requirement Directive (CRD), and the Virtual Asset Service Is. Provider Instructions (VASP).
This transfer of the VASPs Directive, which envisages giving legal status to entities involved in virtual asset trading and defining their obligations and rights, will be one of the most important steps towards sustainable regulation of the Georgian crypto industry, the report notes. This is “particularly important for the formation of a legal environment for crypto services and crypto exchanges in Georgia,” Davitashvili emphasized.
Georgia Strives to Be a Crypto Hub
The Georgian Minister of Economy considers the synchronization of the country’s financial legislation with EU directives as the first step towards reaching the ultimate goal of turning Georgia into a crypto hub. That vision is portrayed in the Small Nation Development Strategy for the period 2020-2025 that was approved by the executive power two years ago.
Business Media also reported 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, the world’s leading digital asset exchange, which is considering opening a regional office in the country but is still awaiting the introduction of a licensing arrangement.
The latest regulatory development comes after Georgian Prime Minister Irakli Gharibashvili met with other key participants in the cryptocurrency market, including representatives of blockchain company Ripple and another major cryptocurrency exchange, FTX. Both companies indicated their interest in setting up offices in Georgia.
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