The government of Georgia has approved amendments to the legal framework for the Caucasian nation’s financial sector, including additional regulations for crypto and fintech activities. This move is intended to bring Georgian law in line with EU regulations.
The Parliament of Georgia will vote on Crypto Legislation for the upcoming months
Tbilisi’s government has presented a bill to expand the regulation framework for businesses dealing with crypto assets. The legislature will vote on it in the fall session, Levan Davitashvili Minister of Economy and Sustainable Development announced. He elaborated on the matter in a Business Media news report.
Georgia is expected to have revised legislation in fall that will help significantly grow the financial industry.
According to Levan Davitashvili’s statement, the draft legislation prepared by the Georgian government has been tailored to achieve convergence with three important directives of the European Union — the Payment Services Directive (PSD 2), Capital Requirements Directive (CRD), and the Virtual Asset Service Providers Directive (VASPs).
According to the report, this transposition of VASPs directive which envisions the granting of legal status entities that are involved in virtual asset trading as well as defining their obligations will be one the most crucial steps towards sustainable regulation for the Georgian cryptocurrency industry. It is “particularly important for the formation of a legal environment for crypto services and crypto exchanges in Georgia,” Davitashvili emphasized.
Georgia Strives To Become A Crypto Hub
The Georgian economy minister considers the synchronization of the country’s financial legislation with the EU directives as a first move toward reaching the ultimate goal of turning Georgia into a crypto hub. That vision of that has been featured in the small nation’s development strategy for 2020-2025 period which was approved by the executive power two years ago.
Business Media believes that Georgia’s new legal framework will allow major companies in the crypto market to expand their presence. Among them is the world’s leading digital asset exchange, Binance, which is considering to open a regional office in the country but is still awaiting for the introduction of a licensing regime.
After meeting with Irakli Gharibashvili (Georgian Primer Minister), the latest regulatory developments occurred. This included representatives of Ripple and FTX. Both firms expressed their desire to set up offices in Georgia.
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