Central Bank Governor Koba Gvenetadze said in an interview with The Financial that the National Bank of Georgia is preparing a legal framework to regulate the cryptocurrency market.

According to Moneyval, experts evaluating measures to combat money laundering and terrorist financing, the volume of foreign exchange transactions with cryptocurrencies in Georgia can reach 3.5 to 5 million lari (from $ 1.1 million to $ 1.6 million) per month.

With the help of experts from the International Monetary Fund (IMF), the Central Bank has developed draft legislative measures in line with the requirements of the Financial Action Task Force on Money Laundering (FATF).

The project includes the procedure for registration and licensing, checking compliance and monitoring compliance with AML procedures for crypto market participants.

The head of the central bank noted that a number of measures have already been taken to regulate the sector in the country. In particular, financial institutions were prohibited from providing services for the exchange and transfer of crypto assets. In addition, individuals engaged in activities related to them should be classified as high-risk customers and subject to further scrutiny.

Earlier, the Central Bank of Georgia talked about its plans to launch a pilot program to introduce digital lari in 2022.