Starting from September 1, 2023, the National Bank of Georgia will initiate mandatory supervision of virtual asset service providers. This move aims to strengthen regulatory oversight and ensure compliance with anti-money laundering measures in the cryptocurrency sector. The National Bank of Georgia is taking proactive steps to enhance the integrity and security of virtual asset transactions within the country.
In a bid to prevent money laundering and comply with sanctions, Georgia, a cryptocurrency-friendly country in the Post-Soviet region, is gearing up to monitor crypto firms. The National Bank of Georgia has announced plans to introduce mandatory supervision of virtual asset service providers (VASPs) starting from September 1, 2023.
This move reflects Georgia’s commitment to strengthening regulatory measures and ensuring the proper implementation of anti-money laundering practices in the cryptocurrency industry. By closely monitoring VASPs, the National Bank of Georgia aims to enhance the integrity and security of crypto-related activities within the country.
According to local news agency InterPressNews, Archil Mestvirishvili, the acting governor of the National Bank of Georgia (NBG), stated that the new regulatory measures will aid the country in combating money laundering.
The upcoming probe into virtual asset service providers (VASPs) is also expected to enhance Georgia’s compliance with Western sanctions against Russia and Belarus, aligning with anti-money laundering considerations.
Mestvirishvili highlighted that the NBG is one of the key authorities responsible for overseeing compliance with these sanctions. He further mentioned that the supervision was particularly active last year when the United States and the European Union imposed sanctions on Russia.
Alongside the supervision of virtual asset service providers (VASPs), the National Bank of Georgia (NBG) is gearing up to implement significant restrictions for foreign bank account holders.
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Starting from September 1, Russian citizens will be limited to withdrawing no more than 20% of their savings accounts immediately. The central bank believes that these measures will help maintain Georgia’s economic stability amid the rise in foreign currency deposits from Russians.
The NBG stated that it is preferable to keep these funds in liquid assets, considering that the capital inflow may be temporary in nature.
The Georgian government is making preparations to pass cryptocurrency-related legislation during the autumn session. The proposed bill aims to align local laws with important directives from the European Union and establish legal recognition for entities engaged in digital asset trading.
The upcoming regulations seek to prevent the misuse of cryptocurrencies for illicit activities like money laundering and terrorist financing, while also positioning Georgia as a significant global cryptocurrency hub.
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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