- From September 1, the National Bank introduces constant monitoring of VASP
- This is necessary, among other things, to comply with Western sanctions.
- Earlier, the government stated that they intend 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 supervision of service providers in the CA sector (VASP). This is necessary to comply with the provisions of the AML and implement Western sanctions against the Russian Federation and Belarus.
Local people say it mass media with reference to the head of the regulator Archil Mestvirishvili. According to him, the National Bank was “particularly active” in the fight against money laundering and terrorist financing in 2022, when Georgia joined Western sanctions.
To comply with these, a new department was organized on the basis of the regulator. It is he who will oversee the implementation of sanctions, including among VASPs.
Recall that in the fall of last year, a law on the regulation of cryptocurrencies was adopted in the country. At the same time, local authorities announced 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 is trying to change this. From September 1, for all organizations in this segment, the AML rules established by the department will be mandatory. The National Bank also seems to be planning to introduce regular checks and reporting.
Georgia positions itself as a crypto-friendly country. In 2022, it took fourth place in the ranking, behind the United States, Switzerland and Hong Kong. By 2025, Georgia plans to take the lead.
Interestingly, shortly before the change in the principles of VASP supervision, the EU officially adopted the MiCA rulebook. It is possible that this is what dictated the changes in the policy of the National Bank.
We previously reported that Tether and Binance have increased their footprint in Georgia. More details on the links.