Georgia to Unveil New Cryptocurrency Law by This Fall

Authorities in Georgia are now discussing with industry representatives to finalize a bill designed to regulate coin trading, among other crypto-related activities.

The legislation will be offered to the Georgian society this fall at the latest, a top central bank official announced.

The National Bank of Georgia (NBG) is fine-tuning a draft law tailored to establish a legal framework for specific operations with cryptocurrencies with the help of interested parties from the sector.

Public and business officials are currently holding talks on the new legislation, the bank's Vice Governor Papuna Lezhava revealed, Sputnik Georgia.

He stated: The central bank official elaborated that the law will regulate several crypto-related areas at once. These include consumer protection and cryptocurrency trade.

Its provisions will introduce rules for trading platforms like digital assets exchanges.

However, they do not concern with crypto miners and their activities, Lezhava noted.

Cryptocurrency mining became an alternative income and a popular business source for many Georgians a few years ago.

A study by the Cambridge Center for Alternative Finance (CCAF), published in 2018, ranked Georgia second in the world regarding the amount of electricity used to extract digital coins.

In April, NBG Governor Koba Gvenetadze told the Georgian business news portal the Financial that the monetary authority was planning to regulate transactions in the crypto space of the Southern Caucasus country.

He revealed that companies in the industry might expect a licensing regime. At the same time, the regulator intends to ban traditional financial institutions from providing crypto-related services.

Gvenetadze also pointed out that the amendments central bank is working on complying with the intergovernmental Financial Action Task Force on Money Laundering (FATF) requirements.