To expand the supervisory framework for Virtual Asset Service Providers (VASPs), the National Bank of Georgia has implemented significant amendments to the "Rule on Registration, Cancellation of Registration, and Regulation of Virtual Asset Service Providers at the National Bank of Georgia."

These amendments aim to prevent risks associated with virtual asset services, strengthen trust in the ecosystem, and ensure the sustainable development of the sector.

The supervisory framework of the National Bank, which is based on international best practices and developed taking into account feedback received from ecosystem participants, establishes additional regulatory requirements for Virtual Asset Service Providers.

Within the framework of risk-based supervision, within  the Rule the minimum supervisory capital requirements have been determined according to the specific type of activity. Namely:

• In the case of exchange (including via self-service kiosks) and/or transfer services of convertible virtual assets - no less than 150,000 GEL;
• In the case of trading platform administration services - no less than 350,000 GEL;
• In the case of all other services (excluding the initial coin offering of stablecoin ) - no less than 250,000 GEL.

In the event of an initial coin offering of a stablecoin , according to the " The Rule for the Initial Coin Offering of a Stablecoin by a Virtual Asset Service Provider", the supervisory capital is set at a minimum of 500,000 GEL and increases alongside with the growth in the value of reserve assets. It is also worth noting that if the provider offers more than one virtual asset service, they are obliged to maintain the highest minimum supervisory capital required among those respective services.

Furthermore, regulatory requirements for the risk management framework have been added to the registration and regulation rule, which include the assessment and control of operational risks, cybersecurity, operational process management, and business continuity planning.

Registration requirements have also been defined for providers planning to provide initial coin offering of stablecoins. These include requirements regarding corporate governance, supervisory capital, and the whitepaper.

According to the updated registration and regulation rule, the individual administrative-legal act issued by the National Bank regarding the provider's registration will clearly indicate the specific type of virtual asset service the entity is authorized to provide. Consequently, the National Bank will ensure the update of the publicly available registry, specifying the exact type of service  for each provider.

To ensure compliance with the additional requirements established by the amendment, Virtual Asset Service Providers already registered with the National Bank have were granted additional time to comply. Specifically, July 1, 2027, has been set as the deadline for compliance with the risk management framework requirements, and September 1, 2027, for compliance with the minimum supervisory capital requirements.