The National Bank of Georgia (NBG) has issued a public statement emphasizing its commitment to fostering innovation in the financial sector while ensuring consumer protection through robust regulatory oversight.

As part of its mandate, the NBG stated that it is actively identifying individuals and entities—both within Georgia and in Free Industrial Zones (FIZs)—who are offering virtual asset services without the required authorization or registration. The central bank warned that such activities violate national legislation and could expose consumers to significant financial risks.

“It is strictly prohibited for any person who is not registered as a Virtual Asset Service Provider by the NBG, or who is not a financial sector entity authorized under relevant regulatory legislation, to provide virtual asset services,” the NBG emphasized.

The bank highlighted its legal responsibilities, which include:

Registration and deregistration of Virtual Asset Service Providers (VASPs)

Establishing ‘fit and proper’ criteria for VASP administrators

Supervising activities to prevent money laundering and terrorist financing

Issuing regulatory instructions and imposing sanctions where necessary

The NBG also clarified that only certain licensed financial institutions—such as commercial banks, microbanks, microfinance institutions, and brokerage firms—are legally permitted to provide virtual asset services, and even then, only under specific regulatory conditions.

Regarding Free Industrial Zones, the NBG noted that despite their special legal status, all entities operating in FIZs must still comply with national financial regulations, including proper registration if they intend to engage in virtual asset-related activities.

The NBG issued a strong warning to the public, stating that engaging with unregistered providers may lead to fraud and financial loss. Citizens are encouraged to:

Verify whether a virtual asset service provider is registered with the NBG

Report any suspicious or unauthorized activity

Exercise caution when dealing with virtual asset services, especially those lacking official credentials

In cases where unregistered activity suggests possible criminal conduct, the NBG affirmed that it will forward the information to law enforcement authorities.

The central bank's proactive stance comes amid growing global concerns over unregulated crypto activity and aims to balance innovation with financial stability and consumer safety.