The Bank of Georgia is looking to regulate the cryptocurrency market in a way that prevents financial risks and closes loopholes that criminals might exploit. The central bank is preparing legislation to provide legal regulation to the trade, sale, exchange, and storage of cryptocurrencies. According to Georgian news site Lenta, the project will also establish clear rules for traders and customers in order to achieve a high level of transparency.
“If we do not want cryptocurrency as an asset class all over the world, we need to introduce it as an effective instrument for making payments,” said BoG’s Deputy Director Kakha Katsitadze.
Trends in Government Regulations and Cryptocurrency Development
The number of people investing in cryptocurrency has skyrocketed in recent years. The popularity has been matched with crackdowns by regulators due to the various factors exposed, such as the risk of money laundering. The government must balance regulations with staying at the forefront of an industry that is quickly growing and can help the economy boom.
In conclusion, the Georgian Central Bank has been undergoing a lengthy regulatory journey to match European standards resulting in diverse legislation. Crypto companies residing within the country will soon be able to enjoy the certainty and stability available in other jurisdictions.
The article’s writer Noah Jones did not hold any positions in assets or companies mentioned in this article on the date of publication. His opinions are articulated herein, and the reader accepts that some opinions could change as a result of newer information being revealed.
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