The Governor of National Bank of Georgia Koba Gvenetadze informed about working towards the regulation of the crypto market in Georgia in an interview l on April 4. Moving ahead in this direction, the National Bank has already created an initial draft of the relevant legislative changes in accordance with the intergovernmental Financial Action Task Force (FATF) protocols against money laundering. Besides, the bank has been taking technical support from the International Monetary Fund (IMF) staff in the development of this regulatory framework.
The governor noted the following measures in the interview that have been taken in this direction :
* In the present stage, the draft of the legislative changes includes registration or licensing, compliance testing and Anti Money Laundering control requirements for crypto market players.
* However, Gvenetadze said that the National Bank of Georgia has already taken some measures before enacting the above regulations. These include the following:
– The financial institutions have been banned from providing virtual asset exchange and transfer services.
– Persons that carry out activities related to virtual assets would be classified by financial institutions as high risk clients and will be subject to appropriate enhanced preventive measures.
On being asked the annual turnover of cryptocurrency industry in the country, the governor said that they do not have accurate data of cryptocurrencies, since the Virtual Assets Services Provider (VASP) sector is yet not regulated in the country. The governor however pointed out the fifth Round Mutual Evaluation Report of Georgia, which was published in September 2020 by Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL). According to MONEYVAL, the crypto exchange transaction volume is estimated to be between GEL 3.5 to 5 million (EURO 1 million to EURO 1.5 million) per month.
In October 2021, the Vice President of Georgia Papuna Lezhava had announced that the central bank was preparing to launch the pilot CBDC by 2022 and was planning to use the blockchain-based version of the national fiat, the Georgian lari, to facilitate retail sales.
For the latest crypto news and investment tips, follow our Cryptocurrency page.
The governor noted the following measures in the interview that have been taken in this direction :
* In the present stage, the draft of the legislative changes includes registration or licensing, compliance testing and Anti Money Laundering control requirements for crypto market players.
* However, Gvenetadze said that the National Bank of Georgia has already taken some measures before enacting the above regulations. These include the following:
– The financial institutions have been banned from providing virtual asset exchange and transfer services.
– Persons that carry out activities related to virtual assets would be classified by financial institutions as high risk clients and will be subject to appropriate enhanced preventive measures.
On being asked the annual turnover of cryptocurrency industry in the country, the governor said that they do not have accurate data of cryptocurrencies, since the Virtual Assets Services Provider (VASP) sector is yet not regulated in the country. The governor however pointed out the fifth Round Mutual Evaluation Report of Georgia, which was published in September 2020 by Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL). According to MONEYVAL, the crypto exchange transaction volume is estimated to be between GEL 3.5 to 5 million (EURO 1 million to EURO 1.5 million) per month.
In October 2021, the Vice President of Georgia Papuna Lezhava had announced that the central bank was preparing to launch the pilot CBDC by 2022 and was planning to use the blockchain-based version of the national fiat, the Georgian lari, to facilitate retail sales.
For the latest crypto news and investment tips, follow our Cryptocurrency page.