Georgian officials are in talks with the sector to develop a bill that will regulate crypto trading and other related activities. According to a senior official at the bank, the bill will be introduced to Georgian society in the fall.
Central Bank of Georgia Talks Crypto Regulations with Market Players
With the assistance of sector stakeholders, the National Bank of Georgia is currently working on a draft law to create a framework that allows certain transactions with cryptocurrency. Public and business officials are currently holding talks on the new legislation, the bank’s Vice Governor Papuna Lezhava revealed, quoted by Sputnik Georgia. He said:
A bill to regulate cryptocurrency is in the works. It’s currently being reviewed by market participants. In the summer, or in fall, the final document will become public.
According to the official at central bank, this law will cover several areas related to crypto. They include cryptocurrency trading and consumer protection. These provisions provide rules that will govern trading platforms, such as those for digital assets. Lezhava pointed out that the provisions do not apply to crypto miners, or their activities.
A few years back, cryptocurrency mining was a very popular and lucrative business. According to a 2018 study published by The Cambridge Center for Alternative Finance, CCAF, Georgia ranked second worldwide in terms of the amount of electricity required for the extraction of digital coins.
NBG Governor Koba Vvenetadze revealed to the Financial, a Georgian news site about business and finance in April, that the Central Bank of Georgia was planning regulation for transactions in the South Caucasus crypto-space. The governor said that the licensing system could be expected by companies working in this industry.
In the meantime, regulators intend to block traditional financial institutions offering crypto-related services. Gvenetadze pointed out, however that amendments being worked on by the central bank are compliant with requirements set forth in the Intergovernmental Financial Action Task Force on Money Laundering.
What do you think Georgia will do to become a bitcoin hotspot and adopt Bitcoin-friendly regulations? Leave your comments below.
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