Georgia wants to synchronize its crypto regulations with the relevant rules in the EU. They also plan to become a global crypto centre by 2025.
Georgia, is one of the most crypto-friendly countries in the world. The nation is taking steps to update its crypto regulation as per the European Union, because it seeks to become a kind of connected hub between Europe and Asia for the global industry.
According to Levan Davitashvili, Deputy Prime Minister and Minister of Economy and Sustainable Development of the country, a «package» of draft laws has already been handed to parliament. He expressed confidence that they will be approved at the autumn parliamentary session.
This package includes:
- Providing additional information before buying cryptocurrencies (Payment Services Directive)
- Certain regulatory criteria when evaluating license requests related to cryptography (Capital Requirements Directive)
- Tracking crypto services for suspicious transfers or transactions (Virtual Asset Service Provider Directives)
Davitashvili also noted that legislation related to VASP was «one of the most important steps» that the country had to take.
The new legal framework will make it easier for major players in the crypto industry to establish a presence in Georgia. For example, the leading Binance exchange is already considering the possibility of opening a regional office but is still waiting for the introduction of a licensing regime.
In addition, Georgia is attractive with a comfortable tax and corporate climate. There are tax benefits for IT-companies (Virtual Zone Person and an International company), and the process of registering a business does not take much time.
Also here’s what the creator of the EGO token, Egor Trufanov, who moved to Batumi last year, said:
“Georgia in terms of the crypto movement is now at the forefront. This is one of the truly free countries in terms of cryptocurrencies and business. For example, freelancers and sole proprietors with the status of “small business” with a turnover of up to 500,000 lari per year pay a tax of 1% on turnover. There is a virtual zone where, for example, you can open a company, issue a card and use it all over the world. The crypt in Georgia is completely legal — it can be easily exchanged and withdrawn”.
Remember that Georgia intends to obtain candidacy for EU membership. On September 7, the High Representative of the EU for Foreign Affairs and Security Policy, Josep Borrel, announced that the EU supports Georgia in its European path. It seems that now the conditions for the implementation of regulations corresponding to the EU are the most suitable.
💡 45 crypto ATMs have been installed in Tbilisi, Batumi and Kutaisi, through which you can legally cash out virtual currency. Of course, this is slightly less than in the USA, it is about 34400, but more than in the UK (19), France (5), and Turkey (14).
Will Georgia be able to achieve the set bar? We shall wait and see.
