What is going on? – Cryptal, VASP License and National Bank of Georgia

Interest in Virtual Assets is burgeoning in Georgia, with a growing number of individuals seeking to invest in crypto assets. Consequently, the National Bank of Georgia has initiated the process of licensing crypto service providers in the country. It's especially important while the industry is still growing and is relatively new.

Cryptal, an early entrant in the Georgian crypto sphere, offers a wide range of services according to all the regulations, including buying, selling, storing, and converting Virtual Assets. Recently, Cryptal has been granted a VASP license by the National Bank of Georgia.

In this blog post, we aim to simplify and elucidate the implications of this development. We'll explain in clear and accessible language the positive changes that this news may usher in for both individual crypto investors and the broader Georgian crypto industry.

What is happening in the Georgian Crypto Market?

The Georgian crypto market has transitioned to a new phase, largely influenced by the introduction of new regulations. All companies, both Georgian and non-Georgian, operating in the Georgian crypto market are now required to obtain licensing. Specifically, acquiring a license for Virtual Asset Service Providers (VASPs) has become imperative.

This regulatory change holds significant importance for the Georgian Crypto market as it was always quite active towards adopting Virtual Assets. Furthermore, its impact extends beyond the crypto industry itself, potentially benefiting adjacent sectors and related institutions, including the traditional financial industry.

What is a VASP License?

As previously mentioned, the VASP license represents a novel regulatory framework issued by the National Bank of Georgia. This license is bestowed upon a diverse array of companies and platforms engaged in digital asset-related activities.

• The VASP license empowers companies to offer virtual asset services within the Georgian market. These services encompass a spectrum of activities including receiving, issuing, transferring, storing, and exchanging Virtual Assets for other Virtual Assets.
  
  
• The scope of the VASP license extends beyond companies solely involved in Virtual Assets management to encompass traditional financial institutions such as banks and microfinance companies as well.

Why VASP License is good news for the Industry?

A government-issued license inherently instills greater confidence among consumers in the market, particularly in nascent industries like Virtual Assets.

This licensing represents a crucial stride towards bolstering trust and fostering a robust operational environment within the crypto sphere.

Ultimately, these developments pave the way for the widespread adoption and integration of Virtual Assets and virtual assets, resulting in an expanded market and an array of new opportunities.