Georgia to Unveil New Cryptocurrency Law by This Fall

Georgia to Unveil New Cryptocurrency Law by This Fall – Georgia officials are currently meeting with industry stakeholders to finalize a measure that will govern coin trading and other crypto-related activity. According to a top central bank official, the legislation will be submitted to Georgian society no later than this fall.

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With the support of industry participants, the National Bank of Georgia (NBG) is fine-tuning a draft law aimed at establishing a legal framework for some cryptocurrency transactions. According to Sputnik Georgia, the bank’s Vice Governor Papuna Lezhava indicated that public and commercial representatives are now discussing the new legislation.

Also Read: California Governor Newsom Signs Executive Order on Crypto, Blockchain, and Web3

He made clear:

“We are working on a bill to regulate cryptocurrencies, which is now being discussed with market participants. In the summer or fall, the final document would be made public.”

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According to the central bank official, the bill will regulate various crypto-related domains at the same time. Consumer protection and crypto trading are two of them. Its provisions will establish trading platform rules, such as for digital asset exchanges. They do not, however, apply to crypto miners and their activity, according to Lezhava.

A few years ago, cryptocurrency mining became a popular industry and an alternative source of income for many Georgians. The Cambridge Center for Alternative Finance (CCAF) rated Georgia second in the world in terms of the amount of electricity consumed to extract digital currency in a report published in 2018.

In April, NBG Governor Koba Gvenetadze told the Financial, a Georgian business news portal, that the monetary authority was planning to regulate transactions in the country’s crypto realm. He stated that industry companies could expect a licensing framework.

Also Read: Gucci to Accept Crypto Payments in Retail Stores

The regulator also plans to prohibit regular financial institutions from offering crypto-related services. Gvenetadze further stated that the central bank’s proposed changes are in line with the criteria of the intergovernmental Financial Action Task Force on Money Laundering (FATF).

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