Will Bitcoin attain a legal stature in Georgia?

Sahana Kiran
Source – Unsplash

The entire globe seems to be singing to the tunes of Satoshi Nakamoto the creator of Bitcoin [BTC]. From being widely disregarded to attaining legal status in several regions across the globe, Bitcoin has managed to make it big. Now, Georgia wanted to swallow the orange pill by regulating the market.

For the crypto-verse, 2022 got off to a wonderful start. Several countries responded by regulating and even legalizing Bitcoin. This year’s themes seemed to be legalizing and regulation and the trend continued. Georgia has joined the crypto bandwagon, with Koba Gvenetadze, the Governor of the National Bank of Georgia [NBG], revealing the country’s crypto vision.

During a recent interview, the governor stated that the government was developing a regulatory framework to monitor the usage of Bitcoin. The framework would include a wide variety of crypto-centric measures, from licensing to AML processes and compliance testing.

While the framework is still in the works, a draft has already been formulated. Elaborating on the same, Gvenetadze further said,

“We are also benefitting from the technical assistance of the International Monetary Fund staff in the development of this regulatory framework. Draft of Legislative changes at this stage includes registration / licensing, compliance testing and AML control requirements for crypto market players.”

Georgia’s crypto usage is still under wraps

The $2.17 trillion cryptocurrency industry has attracted a diverse group of people. As a result, every country has seen a significant increase in usage. Georgia, on the other hand, has been unable to obtain a precise assessment of cryptocurrency usage in the nation. Gvenetadze elaborated on the basis behind this, saying,

“Due to the fact that the VASP sector is not regulated at this stage, we do not have accurate data on this issue.”

Nevertheless, the exchange transaction volume is estimated to be between GEL 3.5 to 5 million every month.