Georgia is set to launch a framework for crypto regulations based on EU derivatives.
The Georgian government has created a legal framework to regulate digital businesses and cryptocurrency trading.
According to the news report shared by the local news portal Business Media Georgia, Minister of Economy and Sustainable Development of Georgia Levan Davitashvili noted that the bill has been sent to the Parliament and is expected to get approved during the autumn session.
We expect that in the fall, Georgia will have updated legislation that will significantly develop the financial sector.
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The new framework was built upon three European Union derivatives: Capital Requirements Directive (CRD), Virtual Asset Service Providers Directive (VASP), and Tax Services Directive (PSD2).
The new regulatory framework aims to form clear guidelines on providing legal statuses to “entities involved in virtual asset trading” and distinguishing their obligations and rights. Moreover, the new framework will provide requirements for the prevention of money laundering and terrorist financing.
The news report noted that major crypto exchanges are already interested in joining the Georgian crypto market. Business Media Georgia stated that one of the largest crypto exchanges, Binance, is planning to open its regional headquarters in Georgia.
Based on the report, the Prime Minister, Irakli Gharibashvili, has met with representatives of Ripple and FTX to discuss their plans to join the Georgian crypto market. It seems that mentioned crypto exchanges are waiting for a regulatory framework and licensing of crypto-related companies.
According to the minister, these are only the first steps Georgia is taking to become a European crypto-hub. The idea seems quite realistic as Georgia places fourth in the Forex Suggest study, which sought to identify the most crypto-friendly jurisdiction.
Earlier this year, the Governor of the National Bank of Georgia announced its plans to regulate the local digital asset market.
This article was originally published in Bitdegree and can be viewed here:
https://www.bitdegree.org/crypto/news/georgian-government-approved-the-legal-framework-for-crypto-regulations
