The National Bank of Georgia has urged investors to verify that intermediaries offering financial investments hold the appropriate regulatory licenses. The warning covers traditional securities, including tokenized securities, and derivatives such as contracts for difference (CFDs) and binary options. Providing investment intermediation without the required authorization may constitute illegal entrepreneurial activity, a criminal offense under Georgian law. A product’s commercial name does not determine its classification. Perpetual futures or perpetual contracts may qualify as CFDs depending on their characteristics. CFDs require an investor to receive or pay the difference between the opening and closing price or level of an underlying asset or indicator, which can include securities, currencies, commodities, virtual assets or financial indices. The warning also addresses prediction markets offering event contracts. Investors should exercise particular caution when the event concerns a financial asset or indicator, as offering such contracts may require a regulatory license. These products may have the characteristics of binary options, under which payment depends on whether a specified event occurs before or at expiry. Lists of brokerage firms, asset management companies and commercial banks licensed by the National Bank of Georgia are available on its website.
National Bank of Georgia urges investors to check intermediary licenses and flags perpetual futures and prediction market contracts
The National Bank of Georgia has urged investors to verify investment intermediaries’ regulatory licenses, warning that unauthorized intermediation may constitute a criminal offense. Perpetual futures may qualify as contracts for difference, while prediction market contracts tied to financial assets or indicators may require a license regardless of their commercial labels.