Georgia follows EU lead on crypto regulation, hopes to become a ‘hub’ for the sector

Georgia’s government is taking steps to update its crypto regulation in line with the EU – and hopes the move will help this country at the crossroads of Europe and Asia become a “hub” for the global industry.

Per iXBT and News Georgia, the country’s Deputy Prime Minister and Minister of Economy and Sustainable Development, Levan Davitashvili, claimed that a “bundle” of bills had already been submitted to parliament.

The minister was convinced that these bills would be approved, and that legal “changes” would be approved during the coming autumn’s Storting session.

Davitashvili stated that all the bills are amendments to existing laws that will “ensure convergence” of Georgian legislation with a number of EU directives that apply to crypto.

These include namely:

• Payment Service Directive (PSD2), which requires exchange customers to submit additional information before buying crypto
• The Capital Requirements Directive (CRD), which requires financial regulators to apply certain criteria when assessing crypto-related license requests
• Virtual Asset Service Provider (VASP) directives, which govern the way exchanges and other crypto service providers communicate with each other and monitor customer transactions for suspicious transfers or trades

Davitashvili was quoted as explaining that this would mean Georgia-based crypto traders would be able to benefit from new legal rights, and that the measures would help the government and law enforcement ensure that crypto is not used in money laundering or terrorist financing.

Davitashvili also pointed out that the VASP-related legislation was “one of the most important steps” the country needed to take in its journey towards a “sustainable regulation of the crypto industry in Georgia.”

The deputy prime minister claimed that streamlining Georgian crypto legislation with the EU directives was “just the first step” in the nation’s crypto journey.

The government has previously stated that it wants Georgia to become a “crypto hub” by 2025.
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