The National Bank of Georgia (NBG) has announced that it will launch mandatory supervision of virtual asset service providers (VASPs) starting from September 1, 2023. Here are the most important things to know about this development:
1. The move is aimed at regulating the use of virtual assets in the country. The NBG has stated that the new regulations will help to prevent money laundering and terrorist financing, which are seen as significant risks associated with virtual assets.
2. The regulations will apply to all VASPs operating in Georgia. This includes cryptocurrency exchanges, wallet providers, and other businesses that deal with virtual assets. These entities will be required to register with the NBG and comply with a range of reporting and compliance requirements.
3. The NBG has stated that it will work closely with other regulatory bodies to ensure that the new regulations are effective. This includes collaborating with the Financial Monitoring Service, which is responsible for preventing money laundering and terrorist financing in Georgia.
In summary, the NBG’s decision to launch mandatory supervision of VASPs is an important step towards regulating the use of virtual assets in Georgia. By requiring VASPs to register with the NBG and comply with reporting and compliance requirements, the regulator aims to prevent money laundering and terrorist financing. The NBG’s collaboration with other regulatory bodies will also help to ensure that the new regulations are effective in achieving these goals.