Regulation of cryptocurrency markets is being prepared by Georgia’s Central Bank

The small Caucasus country contributes to roughly 1% of Bitcoin mining and has more than $1 million in regulated cryptocurrency turnover every month.

Regulation of cryptocurrency markets is being prepared by Georgia’s Central Bank

Georgia, a Black Sea country, is prepared to regulate the bitcoin sector. Koba Gvinitadze, Governor of the National Bank of Georgia, told The Financial on Monday that the central bank has already drafted draft regulatory legislation in compliance with foreign organizations’ standards.

Due to a lack of regulation, Gvinitadze stated that the size of the Georgian bitcoin market is unclear. However, Medieval, the Council of Europe’s money-laundering watchdog, assessed his monthly transaction volume as of September 2020 to be between 3.5 million and 5 million GEL, or $1.09 million to $1.64 million. At the time, Monival asked Georgian authorities to “strengthen the actual use of its efforts to prevent money laundering and terrorist funding.”

The Central Bank Governor went on to say that the future law is in accordance with the International Financial Action Task Force (FATF) regulations and was prepared with the cooperation of International Monetary Fund (IMF) employees. Currently, Georgian financial institutions are not permitted to provide virtual asset exchange and transfer services, and clients who engage in virtual asset transactions are deemed dangerous and “subject to suitable increased protections.”

Gvinitadze did not identify a deadline for the regulatory legislation to be introduced in parliament.

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