In a recent interview, Koba Gvenetadze, the governor of the National Bank of Georgia (NBG) revealed that NBG, which is the central bank of Georgia, is working on a regulatory framework for crypto with the assistance of International Monetary Fund (IMF) staff.
Speaking of the estimated turnover of cryptocurrency in Georgia, Gvenetadze answered that because the VASP sector remains unregulated at this stage, the officials do not have accurate data on this issue.
He, however, cited the fifth Round Mutual Evaluation Report of Georgia and stated that the exchange transaction volume would monthly be between GEL 3.5 to 5 million (EUR 1 to 1.5 million).
When asked whether NBG plans to regulate the crypto market in Georgia, he affirmed to this saying that, “To this regard we have developed an initial draft of the relevant legislative changes in accordance with Financial Action Task Force requirements”
He further added that the bank will benefit from technical support of the International Monetary Fund staff in the making of this regulatory framework.
Also, the Draft of Legislative amendments at this point includes the registration or licensing, compliance testing and AML control requirements for crypto marketers.
Even so, he also emphasised that before these regulations come into full effect, some measures would be taken by the NBG. And that specifically includes banning financial institutions from providing virtual asset exchange and transfer services.
Besides, individuals engaging in activities related to virtual assets must be classified by financial institutions as ‘high risk clients’ and so, must be subjected to appropriate enhanced preventive measures, added Gvenetadze.
The growing trajectory of Crypto has forced Central Banks to bring them under regulations if not completely ban them. Recently, the Bank of England has started outlining Britain’s first regulatory framework for crypto assets.