National Bank of Georgia warns citizens not to use virtual asset services from unregistered providers including in Free Industrial Zones

The National Bank of Georgia (NBG) issued a public warning urging citizens not to obtain virtual asset services from entities that are not registered as Virtual Asset Service Providers (VASPs) with the NBG or otherwise authorised as eligible financial sector entities. The NBG noted it has been identifying individuals providing virtual asset services in Georgia, including in Free Industrial Zones, without the required authorisation or registration. The NBG highlighted that its supervisory remit covers mandatory registration and deregistration of VASPs, fit and proper requirements for administrators, anti-money laundering and counter-terrorist financing supervision, written instructions, and the ability to impose additional requirements, restrictions, and sanctions. It reiterated that, under Georgian law, providing virtual asset services is prohibited for any person not registered as a VASP by the NBG or not authorised under relevant regulatory legislation, and that this requirement applies within Free Industrial Zones as part of Georgia’s territory. The central bank cautioned that using unregistered providers may expose consumers to deception and financial loss, asked the public to verify providers’ reliability and activity status, and invited information on suspected unregistered activity, which it said it would refer to law enforcement where there are indications of possible criminal conduct.