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Tuesday, March 28, 2023

Georgia to Update Crypto Regulations to Incorporate EU Rules

Georgia to Update Crypto Regulations to Incorporate EU Rules – The Tbilisi government has presented a legislative package to the parliament that will broaden the legal protections available to businesses dealing in digital assets. According to Levan Davitashvili, minister of economy and sustainable development, it will be adopted during the upcoming legislative session. 

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He added, as cited by the Business Media news source:

“We expect that in the fall, Georgia will have updated legislation that will significantly develop the financial sector.”

Levan Davitashvili claimed that the draft legislation formed by the Georgian government had been tailored to achieve convergence with three significant directives of the European Union, including the Capital Requirements Directive (CRD), the Virtual Asset Service Providers Directive  (VASPs), and the Payment Services Directive (PSD 2).

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One of the most significant stages toward the effective regulation of the Georgian crypto economy will be the transfer of the VASPs directive, which calls for giving legal status to firms engaged in the trading of virtual assets and outlining their rights and obligations. Davitashvili underlined that it is “particularly important for the formation of a legal framework for crypto services and crypto exchanges in Georgia.”

The synchronization of Georgia’s financial regulations with EU directives, according to the country’s economy minister, is a first step toward realizing Georgia’s ultimate goal of becoming a hub for cryptocurrencies. The development strategy for the small nation’s 2020–2025 period, which was authorized by the executive power two years ago, includes this vision.

Business Media also points out that major players in the global cryptocurrency business will find it simpler to establish a presence in Georgia thanks to the new regulatory framework. One of them is Binance, the leading exchange for digital assets in the world, which is thinking of opening a regional office there but is still awaiting the introduction of a licensing regime.

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Georgia to Update Crypto Regulations to Incorporate EU Rules – The most recent legislative advancement follows a meeting between the prime minister of Georgia, Irakli Gharibashvili, and other significant players in the cryptocurrency market, including executives from the blockchain startup Ripple and another significant cryptocurrency exchange, FTX. Both companies expressed interest in opening offices in Georgia.

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