Georgia will update crypto regulations to include EU rules and legalize the industry.

Georgia’s government adopted reforms to the financial sector’s legal framework, including crypto and fintech legislation. Georgian law will be aligned with EU provisions.

Georgia’s parliament will vote on crypto legislation soon.

Tbilisi’s government has introduced legislation to expand the regulatory framework for crypto asset enterprises. Levan Davitashvili, minister of economy and sustainable development, announced its fall adoption. He told Business Media:

We expect Georgia to change financial laws in the fall.

According to Levan Davitashvili, the Georgian government’s draft legislation converges with three EU directives: Payment Services Directive (PSD 2), Capital Requirements Directive (CRD), and Virtual Asset Service Providers Directive (VASPs).

This transposition of the VASPs directive, which envisions granting legal status to entities involved in virtual assets trading and defining their obligations and rights, will be one of the most important steps towards the sustainable regulation of the Georgian cryptocurrency industry, according to the report. This directive was developed by the European Union and aims to define the obligations and rights of those involved in the trading of virtual assets. Davitashvili underlined that it is “especially vital for the establishment of a legal framework for crypto services and crypto exchanges in Georgia.”

Efforts Are Being Made to Make Georgia a Center for Cryptocurrency

The Minister of the Economy of Georgia believes that the synchronization of the country’s financial legislation with the regulations of the EU is the first step toward achieving the ultimate objective of transforming Georgia into a hub for the cryptocurrency industry. This vision of that has been contained in the development strategy for the little nation’s for the term of 2020-2025, which was adopted by the executive power two years ago.

Business Media notes that the new legislative framework will make it simpler for significant players in the global cryptocurrency business to establish a presence in Georgia. This is another point brought up by Business Media. Binance, the most important digital asset exchange in the world, is one of these companies. It is currently waiting for a licensing system to be put in place before deciding whether or not to create a regional office in the country.

Irakli Gharibashvili, the Prime Minister of Georgia, recently met with other important participants in the cryptocurrency market, including representatives of the blockchain company Ripple and another large cryptocurrency exchange called FTX. As a result of this meeting, the most recent regulatory development has taken place. Both businesses have made it clear that they are considering establishing offices in Georgia.