The National Bank of Georgia (NBG) has implemented a new regulation on determining, imposing, and enforcing monetary fines against virtual asset service providers (VASPs) and their administrators. This move aims to strengthen the oversight framework for VASPs in Georgia.

Recent legislative changes and regulations have established a set of obligations for VASPs and their administrators. The new procedure outlines the consequences of violating or failing to meet these obligations, including potential financial penalties.

The regulation establishes a framework for the National Bank of Georgia to determine, impose, and enforce financial penalties. These penalties will be based on the severity, frequency, and nature of a virtual asset service provider's non-compliance with regulations. This includes adherence to current anti-money laundering and counter-terrorism financing (AML/CFT) regulations, as well as any additional supervisory requirements.

The NBG has categorized violations into three levels: less serious, serious, and especially serious. The size of the imposed fine will be directly determined by the severity, repetitiveness, and/or systemic nature of the offense.

It is important to note that the NBG considered best practices for regulating various financial institutions, along with the specific risks associated with the VASP sector, when establishing the fine amounts.