Foundations of Peer-to-Peer Lending Regulation
Peer-to-peer lending platforms in Georgia fall, in their capacity as loan-giving entities, within the supervisory scope of the National Bank of Georgia. Under article 52-2 of the Organic Law of Georgia on the National Bank, the National Bank is authorised to supervise the activity of a loan-giving entity, and the supervision comprises the registration and deregistration of such an entity, its inspection and regulation, the issuance of written instructions, and the imposition of requirements, restrictions and sanctions. The loan-giving entity itself is obliged to register with the National Bank and to satisfy the requirements established by it. The rules of registration, deregistration and regulation are laid down by a legal act of the National Bank, so before launching a platform the detailed requirements of those acts must be studied and built into the operating model from the outset.