The powers and functions of the National Bank of Georgia are clearly defined by the Organic Law of Georgia. The National Bank supervises banking and non-bank financial institutions, as well as virtual asset service providers. The implementation of the above-mentioned activities is possible only if the entity is registered or licensed by the National Bank of Georgia - Nino Jeladze, Vice President of the National Bank of Georgia, said regarding the issue of sanctioning a virtual asset service provider by the US Treasury Department's Office of Foreign Assets Control (OFAC).

According to her, any person who does not have the appropriate registration, carries out such activities without a license and engages in illegal entrepreneurial activities will naturally not fall under the regulation and supervision of the National Bank.

,,I would like to emphasize that the entity sanctioned by the United States Treasury Department, as well as companies previously sanctioned by the United Kingdom and the European Union, have never been registered with the National Bank of Georgia. The avoidance of registration by several sanctioned companies once again confirms that the regulatory framework and market access requirements of the National Bank are strict. The registration process includes a detailed examination of: the company’s business model, beneficial owners, origin of funds, transaction monitoring systems and other requirements. That is why this framework is an important preventive mechanism and an effective filter against entities that may be involved in illegal activities,” says Nino Jeladze.

According to her, registration does not mean fulfillment of obligations. All virtual asset service providers supervised by the National Bank are required to be in full compliance with the financial sanctions of the United States, the United Kingdom and the European Union. In addition, one of the important requirements of the regulation is that representatives of the financial sector are not allowed to establish business relations with a virtual asset service provider or financial institution that is not licensed by the National Bank or the relevant agency of a foreign country.

,,It is also important to note that Georgia was one of the first countries in the region to create a legal framework for the regulation and registration of virtual asset service providers. This regulation significantly increased the transparency, reliability and accountability, creating a clear and predictable legal environment for market participants. As we have repeatedly noted, the regulatory framework created by the National Bank of Georgia is fully based on FATF standards and best international practices. This approach is also recognized at the international level. This was noted by the Committee of Experts of the Council of Europe – MONEYVAL – in its 2024 evaluation report,” said Nino Jeladze.