Georgia’s Central Bank Is Collaborating With The IMF To Develop a Cryptocurrency Regulatory Framework

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According to a recent interview with the governor of cryptocurrency the National Bank of Georgia (NBG), Koba Gvenetadze, the NBG is working on building a regulatory framework for cryptocurrency trading.

The National Bank of Georgia (NBG) is the country’s central bank and also serves as the country’s central bank representative in international financial matters.

In an interview published on Monday (April 4) by the Georgian news site “The Financial” Gvenetadze answered questions regarding the expected sales of cryptocurrencies in the nation.

This Was The Response That Gvenetadze Had To offer

Currently, we do not have reliable information about the VASP industry because the industry is unregulated at this moment.

Although the Fifth Round Mutual Evaluation Report of Georgia was produced in September 2020…, the monthly volume of exchange operations is estimated to be between GEL 3.5 and 5 million (EUR 1 to 1.5 million).

Asked whether the National Bank of Georgia (NBG) intended to exert control over the bitcoin market in Georgia, he said affirmatively:

“Yes, the National Bank of Georgia aims to exert control over the cryptocurrency market in the country, as previously stated.

The Financial Action Task Force has demanded that we develop an initial draught of the relevant legislative adjustments in accordance with their requirements, which we are currently doing so. We’ve taken care of it.

Additional technical help from experts from the International Monetary Fund has been provided to us during the development of this regulatory framework.

In its current version, the draught of legislative revisions includes requirements for crypto market participants to register and obtain licenses, in addition to requirements for compliance testing and anti-money-laundering controls.

Virtual Asset Exchange

The fact that the NBG has already taken steps to guarantee that the aforementioned regulations are implemented prior to their implementation should be emphasized, as previously stated.

Financial institutions, in particular, have been barred from providing virtual asset exchange and transfer services to the public at large.

Financial institutions should also classify persons who engage in activities involving virtual assets as high-risk clients, and they should be subjected to appropriate and reinforced preventative measures as a result.”

Read More: Cardano Foundation Teams Up With the University Of Zurich For Conducting Academic Based Blockchain Research

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