The Government of Georgia has approved amendments to the legal framework of the Caucasian State’s financial sector, including additional regulations for encryption and financial technology activities. This step aims at harmonizing Georgian law with relevant EU provisions.
Georgia’s Parliament to vote on encryption legislation in coming months
A legislative package to expand the regulatory framework for companies dealing with encryption assets was introduced to Parliament by the government in Tbilisi. Minister of Economy and Sustainable Development Levan Davitashvili announced that it was to be adopted at the autumn session of the legislature. Quoting Business Media News outlet, he explained:
We expect that in the autumn Georgia will have updated legislation that will significantly develop the financial sector.
According to Levan Davitashvili’s statement, the Georgian Government’s draft legislation is designed to bring closeness to three important EU directives – Payment Services Directive (PSD 2), Capital Requirements Directive (CRD) and Virtual Asset Service Providers Directive (VASP)
The report indicates that this transfer of the VASPs directive, which envisages granting legal status to entities involved in the trading of virtual assets and determining their obligations and rights, will be one of the most important steps towards the sustainable regulation of Georgia’s crypto industry. Davitashvili stressed that “it is particularly important to form a legal environment for crypto services and cryptocurrency exchanges in Georgia”.
Georgia strives to become an encryption center
The Georgian Minister of Economy considers the synchronization of the country’s financial legislation with the directives of the European Union to be a first step towards reaching the ultimate goal of transforming Georgia into an encryption centre. That vision was shown in the Small Nation Development Project.