Georgia Takes Steps Toward Cryptocurrency Regulation with BaFin Meeting

Seeking Clarity in Cryptocurrency: A European Encounter

In an exciting turn of events, one of Europe’s top financial watchdogs, Germany’s Federal Financial Supervisory Authority (BaFin), recently sat down with the National Bank of Georgia (NBG) and various finance sector heavyweights. The meeting took place on May 18 and aimed to shed light on the murky waters of cryptocurrency regulation in Georgia.

Building Awareness of Crypto

Attendees of the meeting included representatives from international financial institutions (IFIs), commercial banks, brokers, and various legal and accounting firms. The goal? To enhance awareness and understanding of the cryptocurrency landscape within the country. It was a golden opportunity for participants to pick the brains of European financial regulators and learn about best practices in crypto oversight. One might say it was like a masterclass in navigating the complex world of digital currencies.

The Skeptical Start: Georgia’s Initial Remarks

Way back in December 2017, the NBG was as skeptical as a cat watching a dog chase its tail. They openly warned Georgian citizens to be cautious with cryptocurrencies. The bank emphasized that cryptocurrencies aren’t recognized as legal means of payment in Georgia. In their words:

“National Bank of Georgia would like to warn citizens on this matter. Cryptocurrencies do not represent means of legal payment in Georgia.”

This warning came with a big disclaimer: any activities related to cryptocurrencies were unregulated and no responsibility fell under the NBG’s jurisdiction. Talk about setting the stage for a cautious dance between innovation and regulation!

Georgia’s Crypto Industry: An Unexpected Leader?

Despite the NBG’s wariness, Georgia has established itself as a global player in the crypto mining sector. The country has earned the silver medal in cryptocurrency mining, ranking second worldwide after China according to the 2017 Global Cryptocurrency Benchmarking Study by the Cambridge Centre for Alternative Finance. Who knew that while some were skeptical, others were already mining their fortunes?

Blockchain Initiatives: A Step Towards the Future

In a fascinating twist, the Georgian government partnered with BitFury—a major player in Bitcoin mining hardware—to embark on a groundbreaking project in April 2016. This initiative aimed to record land titles on the blockchain. By the following year, they had already registered over 100,000 land titles. A move that not only saves paperwork but also solidifies property rights in the digital age. Who knew land titles could be just a “block” away?