The Legal Status of Virtual Assets
The legal framework for blockchain-based activity in Georgia is defined at the state level, and at its centre stands the concept of the virtual asset. Under the Organic Law of Georgia on the National Bank, a virtual asset is not a lawful means of payment. The same law prohibits making payments with a virtual asset, except in those cases determined by a legal act of the National Bank of Georgia which are necessary for the provision of virtual asset services. This means that the use of cryptocurrency in everyday payments is restricted as a general rule and is allowed only within supervised services. At the same time, the law treats virtual asset services as a distinct type of financial activity, so a person operating in this field is guided by a special legal regime rather than by general commercial rules. Such an approach allows the state to bring the development of new technologies into harmony with financial stability and the protection of consumers.