Interested financial institutions will have the opportunity to electronically submit equity crowdfunding schemes, based on the trading of equity securities, to the National Bank of Georgia. These schemes must comply with the existing legal framework. The National Bank will review the submitted schemes in accordance with the “Regulation on the Establishment and Use of the Regulatory Sandbox Framework by the National Bank of Georgia,” approved by the Order of the President of the National Bank of Georgia №110/04 on May 25, 2020, as well as with applicable legislation.

Additionally, it is noteworthy that the Government of Georgia is working on the development of an appropriate legal framework that will establish the regulatory basis for crowdfunding. It is expected that a draft law in this direction will be developed within the next two years. Accordingly, the steps taken by the National Bank of Georgia - including the ongoing pilot project within the Regulatory Sandbox - serve as a preparatory phase in the process of forming a broader legislative and regulatory system.

 

Financial institutions participating in the project will have the opportunity to test their business models in a real environment within the framework of the National Bank of Georgia’s Regulatory Sandbox, under the conditions of specific restrictions defined for the pilot phase (including financial limits for both investors and project initiators). The National Bank of Georgia welcomes expressions of interest from stakeholders wishing to participate in the project and looks forward to receiving applications from entities that either hold a brokerage license or are in the process of obtaining one.

The submitted application must cover, among other things, the following key issues:

• The maximum amount for each project listed on the crowdfunding platform;
• The investment limit set for an individual project;
• The total investment limit set for an investor.
  
  

The National Bank supports the development of the FinTech sector, and this project is also in line with that concept. The National Bank is ready to accept applications from interested parties starting from May 1, 2025. Additional information about the Regulatory Sandbox can be found at the following link.

For any questions or inquiries, please contact the NBG Innovation Office at innovationoffice@nbg.gov.ge

 

This should not be construed as a commitment or promise by the administrative authority to issue a license, registration, recognition, or authorization in favor of any specific entity, nor as an obligation to develop and/or amend the regulatory or legislative framework.