The Tbilisi government has presented a legislative package to the parliament that will broaden the legal protections available to businesses dealing in digital assets. According to Levan Davitashvili, minister of economy and sustainable development, it will be adopted during the upcoming legislative session.
Levan Davitashvili claimed that the draught legislation created by the Georgian government had been tailored to achieve convergence with three significant directives of the European Union, including the Capital Requirements Directive (CRD), the Virtual Asset Service Providers Directive, and the Payment Services Directive.
One of the most significant stages toward effective regulation of the Georgian crypto economy will be the transfer of the VASPs directive, which calls for giving legal status to firms engaged in trading virtual assets and outlining their duties and rights. Davitashvili underlined that it is “especially vital for the establishment of a legal framework for crypto services and crypto exchanges in Georgia.”
According to the country’s finance minister, the alignment of Georgia’s financial regulations with EU guidelines is a first step toward realizing Georgia’s ultimate ambition of becoming a hub for cryptocurrencies. The development strategy for the little country’s 2020–2025 era, which was authorized by the executive power two years ago, includes this ambition.
Business Media also points out that big participants in the global cryptocurrency business will find it simpler to establish a presence in Georgia, thanks to the new regulatory framework. The most recent legislative advancement follows a meeting between the prime minister of Georgia, Irakli Gharibashvili, and other significant players in the cryptocurrency business, including executives from the blockchain startup Ripple and another significant cryptocurrency exchange, FTX.
