A representative of the Germany’s Federal Financial Supervisory Authority (BaFin), one of the largest financial regulators in Europe, met with the executives of the National Bank of Georgia (NBG) and other members of the finance sector to discuss about cryptocurrency industry and regulation.
According to NBG, BaFin’s representative met with executives of NBG, international financial institutions (IFI), commercial banks, private sector, brokers, audit, and legal companies to increase awareness of crypto in the country. The BaFin’s representative shared information related to cryptocurrency industry with the participants from the Georgian side.
According to a 2017 study on Global Cryptocurrency Benchmarking by Cambridge Center for Alternative Finance, the number of cryptocurrency mining facilities in Georgia stands next only to China. In April 2016, the Georgian government, in partnership with Bitcoin mining manufacturer BitFury, launched a project to record land ownership on blockchain. The initiative saw more than 100,000 titles being registered in a matter of one year.
However, in December 2017, Georgia’s NBG urged investors to remain ultra cautious while dealing with cryptocurrencies. The bank also warned that none of the cryptos are legal tender and activities related to cryptocurrency is unregulated. The NBG also explained that it will bear no responsibility in case of any eventuality.
“National Bank of Georgia would like to warn citizens on this matter. Cryptocurrencies do not represent means of legal payment in Georgia. Any sort of activity conducted within this sector is not regulated by legislature and therefore is not a sphere of influence of NBG.”
