National Bank of Georgia Plans to Regulate Cryptocurrencies

The National Bank of Georgia (NBG) is reportedly planning to regulate the cryptocurrency market in the country, according to its governor, Koba Gvenetadze. The Financial reported that the forthcoming draft law would outline a series of rules for virtual asset service providers to register before proper authorities comply with anti-money laundering rulings.

“We have developed an initial draft of the relevant legislative changes in accordance with Financial Action Task Force requirements. We are also benefitting from technical assistance of the International Monetary Fund staff in the development of this regulatory framework,” Gvenetadze pointed out in an interview with The Financial.

Also, the governor added: “It should be noted, however, that before the aforementioned regulations enter into force, some measures have already been taken by the NBG. In particular, financial institutions have been banned from providing virtual asset exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term and transfer services. Also, persons that carry out activities related to virtual assets should be classified by financial institutions as high-risk clients and should be subject to appropriate enhanced preventive measures.”

There is no timeline set for the draft bill, which is discussed in the country’s parliament.

Hotspot for Bitcoin Miners

After the Chinese crackdown on the industry, Georgia became a hotspot for several companies that wanted to set up Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term (BTC) mining facilities. However, the NBG has issued some warnings on the risks involved when investing in virtual currencies, although this implies a change in its stance towards digital assets by endorsing a wide regulation in the small nation.

Several institutions in Georgia are already investing in cryptocurrencies, but the finance sector has been on the fence. With its eMoney service, Liberty Bank offers a way to buy and sell cryptocurrencies. But, it is still a long way from the point where virtual money replaces so-called fiat currencies, such as the dollar or Georgia’s lari.