- From September 1, the National Bank will introduce permanent monitoring of the VASP
- This is necessary, among other things, to comply with Western sanctions
- The government has previously said it intends to make Georgia the most crypto-friendly country in the world by 2025
From September 1 this year, the National Bank of Georgia will introduce permanent monitoring and oversight of CA service providers (VASP). This is necessary to comply with AML regulations and implement Western sanctions against Russia and Belarus.
Local media report this, citing the head of the regulator Archil Mestvirishvili.. According to him, the National Bank was “especially active” in the fight against money laundering and terrorist financing in 2022, when Georgia joined Western sanctions.. It is he who will oversee the implementation of sanctions, including among VASP.
When last fall, the country adopted a law on the regulation of cryptocurrencies. At the same time, the local authorities said that they were guided by European standards in this industry.
Previously, VASPs were not among the counterparties in the jurisdiction of the National Bank of Georgia.. The regulator seeks to change this. As of September 1, all organizations in this segment will be subject to AML rules established by the agency. The National Bank also seems to be planning to introduce regular inspections and reporting.
Georgia is positioning itself as a crypto-friendly country. In 2022, it ranked fourth, behind the United States, Switzerland, and Hong Kong. By 2025, Georgia plans to break into the lead.
It is interesting that shortly before the change in the principles of VASP supervision, the European Union officially adopted the MiCA rulebook.. It is possible that this is the reason for changes in the policy of the National Bank.</nbsp;
We reported earlier that Tether and Binance increased their presence in Georgia. Read more at the links.