The National Bank of Georgia Develops Regulation on Virtual Asset Services

To establish a secure and transparent regulatory and supervisory framework for the initial offering of stable virtual assets in Georgia, the National Bank of Georgia (NBG) has developed a corresponding regulation.

The implementation of this regulation will ensure the sustainable development of Georgia's stable virtual asset ecosystem, enhance consumer rights protection, and improve risk management practices within the sector.

The "Regulation on the Initial Offering of Stable Virtual Assets by a Virtual Asset Service Provider" outlines the prerequisites for initial offerings, including issuance, as well as the rules and requirements governing subsequent services. Furthermore, it clearly defines the rights and obligations of all parties involved in the service.

This regulation introduces fundamental terminology related to stable virtual assets, including: stable virtual asset (pegged to the GEL or foreign currencies), initial offering, reserve assets, offering document, and redemption. According to the document, any stable virtual asset in circulation must be fully (100%) backed by reserve assets. The regulation also stipulates the composition and mandatory proportional metrics of reserve assets, mandates the segregated storage of capital and reserve assets, and enforces the obligation to redeem assets upon the request of the stable virtual asset holders. Additionally, it sets standards for information transparency, reporting, essential components of the offering document, technological and operational risk management, and capital requirements.

This regulation builds upon the amendments made to the Organic Law on the National Bank of Georgia on December 17, 2025. These amendments empowered the NBG with full supervisory authority over Virtual Asset Service Providers (VASPs), encompassing prudential supervision, consumer rights protection, cybersecurity, and operational risk management.

The regulation aligns closely with global best practices for the oversight of stable virtual assets. During the drafting process, the legal and regulatory frameworks of various jurisdictions were thoroughly evaluated, including:

• United States: Legislative initiatives concerning stable virtual assets (Genius Act)
• European Union: Markets in Crypto-Assets (MiCA) regulation
• Dubai: The Virtual Assets Regulatory Authority (VARA) regulatory framework
• United Kingdom: Legislative initiatives concerning stable assets
• Singapore: Regulatory frameworks governing stable virtual assets

The NBG also incorporated analytical materials and recommendations published by the International Monetary Fund (IMF) and the International Organization of Securities Commissions (IOSCO). Furthermore, within the framework of technical assistance aimed at strengthening its regulatory and supervisory institutional capacity for virtual assets (including stablecoins), the National Bank of Georgia continues to actively collaborate with the World Bank and the Organization for Security and Co-operation in Europe (OSCE).