National Bank of Georgia develops regulation for stable virtual asset initial offerings by virtual asset service providers

The National Bank of Georgia has developed a regulation establishing a regulatory and supervisory framework for the initial offering of stable virtual assets in Georgia by Virtual Asset Service Providers (VASPs), covering issuance and the provision of related follow-on services. The "Regulation on the Initial Offering of Stable Virtual Assets by a Virtual Asset Service Provider" sets prerequisites for initial offerings and defines the rights and obligations of involved parties. It introduces core terminology, including stable virtual assets pegged to the Georgian lari (GEL) or foreign currencies, reserve assets, offering documents and redemption, and requires stable virtual assets in circulation to be fully (100%) backed by reserve assets. The framework also specifies the composition and mandatory proportional metrics for reserve assets, requires segregation of capital and reserve assets, obliges redemption upon holders’ request, and sets standards for transparency and reporting, offering document content, technological and operational risk management, and capital requirements. The regulation builds on amendments to the Organic Law on the National Bank of Georgia adopted on 17 December 2025 that granted the central bank full supervisory authority over VASPs, including prudential supervision, consumer rights protection, cybersecurity and operational risk management. The National Bank of Georgia positioned the approach as aligned with global practices, referencing work in the United States, European Union, Dubai, United Kingdom and Singapore, and drawing on International Monetary Fund and International Organization of Securities Commissions materials, alongside ongoing technical assistance with the World Bank and the OSCE.