Georgia aims to adopt European crypto standards for Anti-Money Laundering

Georgia aims to adopt European crypto standards for Anti-Money Laundering

Georgia, one of the world’s most cryptocurrency-friendly countries, is moving to introduce new crypto regulations to pursue its ambitions to become a global crypto hub.

Georgian legislators have created a new regulatory framework for cryptocurrency trading and digital business in Georgia, Levan Davitashvili, Vice Prime Minister and Minister of Economy of Georgia announced.

Davitashvili stated that a draft bill was sent to parliament. The amendments will be considered in the autumn session. Local news agency Business Media Georgia reported Monday.

The minister stated that the bill’s draft aims to combine local cryptocurrency laws with three major directives of the European Union, including the Payment Services Directive, Capital Requirements Directive, and the Virtual Asset Service Provider law.

The VASP law provides legal status for entities involved in digital asset trade. According to the report, the new framework will also prohibit the use of cryptocurrency for terrorist financing or money laundering.

Davitashvili stated that VASP rules are essential for Georgia in order to regulate the cryptocurrency industry. According to reports, the minister stressed the importance of synchronizing the Georgian financial laws with the EU’s. This latest framework is just the beginning of Georgia’s plan to be a crypto hub, as per the official 2022-2025 development strategy.

Georgia is now one of the most crypto-friendly nations in the world. According to Forex Suggest’s July 2022 study, Georgia was ranked fourth in crypto-friendly countries after the United States, Hong Kong and Switzerland. Georgia has a high number of crypto ATMs that allow users to buy and sell cryptocurrency in cash. CoinATMRadar data shows that Georgia has 45 crypto ATMs as of the date of writing.

Related: Paraguay’s President vetoes Crypto Regulation Law

Georgian lawmakers have been working this year on cryptocurrency legislation. Koba Gvenetadze, the governor of the central bank, noted the absence of regulation in crypto in April. As thousands fled Russia due to Western sanctions and uncertainty over the economy, the first reports about Georgia’s new crypto rules emerged. Many Russians arrived in Georgia with the intention of managing their finances, and crypto was an important tool.

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