Georgia, the country at the Black Sea is working to regulate its cryptocurrency markets. The Financial was informed Monday by Koba Gvenetadze, Governor of the National Bank of Georgia, that draft regulations have been developed by the central bank in line with international requirements.
Gvenetadze stated that the Georgian crypto market’s size is unrecognized due to its lack of regulation. Moneyval, the Council of Europe money-laundering monitoring body, estimated that its monthly transaction volume was between 3.5 million and $5 million Georgian lari (or $1.09 million to 1.64 million USD) as of September 2020. Moneyval asked Georgian authorities to “enhance the practical application of their measures against money laundering and financing terrorism.”
According to the central banker, the legislation is in compliance with international Financial Action Task Force requirements. It was also written with support from staff of International Monetary Fund. At the moment, Georgian financial institutions are not permitted to offer virtual asset transfer and exchange services. Clients who engage in virtual assets-related activities are high-risk and subject to enhanced preventive measures.
Gvenetadze didn’t specify a date for the introduction regulatory legislation to parliament.
Since long, Georgia has had a crypto mining industry. This country is home to almost 1% in the total Bitcoin hashrate – a remarkable feat for a country of less than 4 million people. Although it has abundant hydropower, power shortages in remote Svaneti regions during winter were due to illegal private crypto mining. The national church issued a spiritual injunction to stop this harmful practice in an effort to curb it. In an effort to keep the population in place, electricity is free to all private residences.
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