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Crypto Regulatory Engagement

How can I resolve bank account opening issues for my crypto business?

Opening accounts for crypto businesses in commercial banks is challenging due to perceived high risk. While the National Bank cannot force private banks to open accounts, engaging a lawyer to present a robust AML/CFT compliance framework can significantly improve your chances. We mediate and present your business case professionally to compliance departments.

Can I appeal a fine imposed by the National Bank?

Yes, administrative acts (fines, sanctions) issued by the NBG can be appealed in court or within the administrative body itself. The success depends on proving procedural violations or misinterpretation of the law by the regulator. We analyze the audit report and draft a legal appeal to reduce or cancel the penalty.

What if my business model falls into a regulatory "grey area"?

Many innovations (DeFi, DAOs, certain NFTs) are not yet explicitly regulated. Operating in a grey area carries risks. We engage with the regulator proactively to explain your model and obtain a "no-action" letter or guidance, ensuring you don't inadvertently breach securities or banking laws.

How do I prepare for a scheduled NBG inspection?

Preparation is key. We conduct a "mock audit" before the real inspection to identify gaps in your AML/KYC policies, reporting history, and internal controls. Fixing these issues beforehand demonstrates good faith and compliance culture, often leading to a much smoother official inspection outcome.

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Crypto industry regulation in Georgia is a dynamic process. The National Bank of Georgia (NBG) is actively implementing new rules for Virtual Asset Service Providers (VASPs) and fintech companies. In this environment, proper communication with the regulator is a critical component of business success. Regulatory Engagement does not just mean obtaining a license; it is an ongoing process involving consultations, clarifying ambiguous issues, managing inspections, and sometimes participating in the formation of new regulations. Qualified legal representation helps you establish a constructive dialogue with the National Bank and avoid misunderstandings.

What Does the Regulatory Engagement Service Cover?

This service provides a bridge between the private sector and the state:

  • Preliminary Consultations: Discussing the business model with the National Bank before filing an official application to determine the scope of regulations in advance.
  • Obtaining Written Clarifications: Officially addressing the NBG to fix a position on a specific issue (e.g., whether a specific NFT platform falls under regulation).
  • Managing VASP Registration Process: Communication during the registration process, addressing deficiencies, and providing additional information.
  • Inspection Support: Legal assistance and protection of interests during inspections by the National Bank or the Financial Monitoring Service.
  • Compliance Reporting: Assisting in the preparation of mandatory reports (AML/CFT) and coordinating their submission.
  • Appealing Sanctions: Administrative proceedings in case of fines or revocation of registration.

Common Real-World Scenarios

Interaction with the regulator is necessary when:

  • A foreign crypto exchange enters the Georgian market and wants to understand local requirements precisely.
  • A company introduces an innovative product (e.g., crypto cards) and it is unclear if it needs an additional license (e.g., Payment Service Provider).
  • A VASP has difficulties opening accounts with commercial banks and needs National Bank involvement/mediation.
  • Legislation changes, and the company needs timely adaptation to new requirements (e.g., implementing the Travel Rule).
  • The National Bank requests information on suspicious transactions, and the company must provide an exhaustive, legally sound response.

Georgian Legislation and Regulations

Relationships are regulated by the Organic Law of Georgia on the National Bank of Georgia and the General Administrative Code of Georgia. The National Bank is the registrar and supervisory body for VASPs. It has broad powers: to issue by-laws (Presidential Orders), conduct inspections, request information, and impose sanctions. The Administrative Code defines the rules of interaction with an administrative body, including deadlines for reviewing applications and mechanisms for appealing decisions. Also important is the Law on Facilitating the Prevention of Money Laundering and Terrorism Financing, which defines obligations for cooperation with the Financial Monitoring Service.

Service Process

Cooperation with Legal.ge specialists includes:

  1. Strategy Development: Defining the plan and tone of communication with the regulator.
  2. Documentation Preparation: Professional drafting of official letters, applications, and responses.
  3. Meetings: Attending meetings with National Bank representatives and presenting the client's interests.
  4. Response: Providing operational and legally substantiated answers to NBG requests or remarks.

Why Legal.ge?

Incorrect communication with the regulator can lead to business suspension or license refusal. Legal.ge gives you access to lawyers with experience working with the National Bank and the public sector. They know the regulator's "language," procedural nuances, and will help you navigate bureaucratic mazes.

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Specialists for this service

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