Framework for the Caucasian country's financial industry, including new laws for crypto and fintech activity.
The move intends to harmonize Georgian legislation with applicable EU provisions.
Tbilisi's administration has introduced to parliament a legislation package that expands the regulatory environment for enterprises dealing with digital assets. Its adoption is scheduled for the fall session of the legislature, announced by the Minister of Economy and Sustainable Development Levan Davitashvili.
A local media outlet stated that “he emphasized that we expect Georgia to have revised legislation that will considerably boost the financial industry by the fall.”
According to Levan Davitashvili's statement, the Georgian government's draught legislation has been crafted to achieve convergence with three significant European Union directives — the Payment Services Directive (PSD 2), the Capital Requirements Directive (CRD), and the Virtual Asset Service Providers Directive (VASPs).
This transposition of the VASPs directive, which foresees establishing legal status for firms active in virtual asset trading and specifying their responsibilities and rights, would be one of the most crucial steps towards the long-term regulation of the Georgian crypto economy, the report notes. It is particularly crucial for the establishment of a legal framework for crypto services and crypto exchanges in Georgia, Davitashvili emphasized.
The Georgian finance minister sees the synchronization of the country's financial legislation with Eu regulations as a first step toward the eventual objective of transforming Georgia into a crypto center. That objective was included in the small country's development strategy for the period 2020-2025, which was authorized by the executive power two years ago.
The new legislative framework will also make it simpler for significant firms in the global crypto business to establish a presence in Georgia, noted the local media outlet. Among them is Binance, the world's leading digital asset exchange, which is considering opening a regional office in the nation but is awaiting the implementation of a licensing scheme.
The current legislative development follows a meeting between Georgian Prime Minister Irakli Gharibashvili and other major players in the cryptocurrency business, including officials from the blockchain startup Ripple and another prominent cryptocurrency exchange, FTX. Both corporations expressed an interest in establishing offices in Georgia.
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