Georgian government approves legal framework for regulation of cryptocurrencies in country

The Government of Georgia has approved the updated legal framework for the financial sector, which regulates the sphere of digital business and cryptocurrency trading, News-Georgia reports.

This was announced by the Minister of Economy and Sustainable Development of Georgia, Deputy Prime Minister Levan Davitashvili.

According to him, a package of bills has already been sent to the Parliament; the amendments are expected to be passed at the autumn session. The minister explained that they foresee approximation of national legislation to three important EU directives: Tax Services Directive (PSD2), Capital Requirements Directive (CRD) and Virtual Asset Service Providers Directive (VASP).

The latter provides for the granting of legal status to persons involved in the trading of digital assets, as well as defining their duties and rights. This will prevent the use of cryptocurrencies for money laundering or terrorist financing.

As Davitashvili pointed out, the VASP legislation is one of the most important steps taken towards sustainable regulation of the crypto industry in Georgia.

The minister also emphasized that the synchronization of the financial legislation of Georgia with the EU directives is only the first step, as Georgia wants to become a cryptohub in the future, which is stated in the government development strategy for Georgia 2020-2025.

As bm.ge indicates, after the adoption of new laws, major players in the global cryptoindustry will be able to start operations in Georgia.