The government of Georgia has scrutinized and approved all amendments to the legal structure for the Caucasian nation’s financial sector. This approval also includes regulations for cryptocurrency and fintech activities. The move is aimed at aligning the current Georgian laws with relevant EU requirements.

A legislative package that expands the regulatory structure for all companies that offer any cryptocurrency asset services has been submitted to the Georgian parliament by the current administration. Minister of Economy and Sustainable Development Levan Davitashvili announced that its adoption is planned for the fall session of the legislature. In his own words: “We expect that in the fall, Georgia will have updated legislation that will significantly develop the sector”.

Also in Levan Davitashvili’s statement, the draft legislation that has been drawn up by the Georgian government is tailored to achieve compliance with three important specifications of the European Union. These are; Capital Requirements Directive (CRD), the Payments Services Directive (PSD) and the Virtual Assets Service Providers Directive (VASPD).

The Virtual Assets Service Providers Directive (VASPD) envisages granting legal status to all entities that are involved in digital assets trading and defining all their rights and obligations. The transposition of this directive will be one of the most important steps that have been taken towards the effective regulation of the Georgian cryptocurrency ecosystem. Davitashvili emphasized that it is very important for the formation of a conducive legal environment for cryptocurrency exchanges and services in Georgia.

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