Regulation of Cryptocurrencies – Seminar in the National Bank of Georgia

Georgia is one of the largest producers of cryptocurrencies („miners“) worldwide, with a potential influence on the Georgian economy.

Despite the increased global interest in cryptocurrencies, there exists no  international regulation of any kind. This is true for the European Union as well, where EU-members adopt their own national laws regarding cryptocurrency regulation, even though cryptocurrencies can potentially be used for money laundering, due to their decentralized organization.

GET Georgia invited Jens Münzer from the Federal Financial Supervisory Authority (BaFin) to give a presentation on the topic of regulation of cryptocurrencies, exemplified by the German legislation. On May 16, the seminar was hold in the National Bank of Georgia with attendees from the NBG, the Ministry of Finance, the Ministry of Economy and Sustainable Development, and the private sector. Many interposed questions and a vivid discussion clearly demonstrated keen interest and current relevance of the topic.

As for now, trade with cryptocurrencies is not very regulated in Georgia, leading to legal uncertainty. At the same time, a rather strict regulation might hamper innovation and hinder potential growth. Against this backround, regulation of cryptocurrencies is of particular significance in Georgia.