Georgia Will Update Crypto Regulations To Incorporate EU Rules, Legalize Industry – Regulating Bitcoin News

The government of Georgia has approved changes to the legal framework for the Caucasian nation’s financial sector, including additional provisions for crypto and fintech activities. The measure aims to adapt Georgian law to relevant EU regulations.

Georgia’s parliament is set to vote on crypto legislation in the coming months

A legislative package expanding the regulatory framework for companies dealing in crypto-assets has been sent to parliament by the Tbilisi government. The adoption is planned for the autumn session of the legislature, Minister of Economy and Sustainable Development Levan Davitashvili announced. Quoted by the Business Media news agency, he elaborated:

We expect that by autumn 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 has been tailored to achieve convergence with three important EU directives – the Payment Services Directive (PSD 2), the Capital Requirements Directive (CRD) and the Virtual Asset Service Providers Directive (VASPs).

This introduction of the VASP 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. It is “especially important for the formation of a legal environment for crypto services and crypto exchanges in Georgia,” Davitashvili stressed.

Georgia is striving to become a crypto hub

The Georgian economy minister considers the synchronization of the country’s financial legislation with EU directives as a first step towards achieving the ultimate goal of turning Georgia into a crypto hub. That vision of it has been mentioned in the small nation’s development strategy for the period 2020-2025 which was approved by the executive branch two years ago.

Business Media also notes 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 the world’s leading digital asset exchange, Binance, which is considering opening a regional office in the country, but is still awaiting the introduction of a licensing regime.

The latest regulatory development comes after a meeting between Georgian Prime Minister Irakli Gharibashvili and other key players in the crypto market, including representatives of blockchain company Ripple and another major cryptocurrency exchange, FTX. Both companies signaled their interest in setting up offices in Georgia.

Do you think Georgia has the potential to become a cryptocurrency hub? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’ quote: “To be a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.