Georgia central bank chief says regulatory framework for crypto markets is being prepared

The National Bank of Georgia is preparing the legislative framework for regulating the crypto market, said the central bank governor Koba Gvenetadze in an interview with The Financial.

According to Moneyval, which evaluates measures to combat money laundering and the financing of terrorism, the volume of crypto exchange operations in Georgia may amount to 3.5 to 5 million lari ($1.1 million to $1.6 million) per month.

The central bank has developed the draft legislative measures in accordance with FATF requirements, with the assistance of International Monetary Fund (IMF) experts.

The project includes registration and licensing procedures, compliance checks, and oversight to ensure AML procedures are followed by crypto-market participants.

The central bank chief noted that a number of measures to regulate the industry have already been adopted in the country. In particular, financial institutions have been prohibited from providing services for exchanging and transferring crypto assets. Also, individuals engaged in related activities should be classified as high-risk clients and subjected to enhanced due diligence.

Earlier, the National Bank of Georgia spoke about plans to launch a pilot program to implement the digital lari in 2022.

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