Georgia to Overhaul VASP Regulation with New Custody, Capital, and Sandbox Rules
Georgia Moves to Tighten VASP Rules with Custody, Capital, and Sandbox Reforms
Georgia is preparing a second wave of crypto regulation—and this one moves from simple registration to active supervision. The National Bank of Georgia is drafting rules that add segregated custody, supervisory capital, and a sandbox for new business models. The aim is to align with FATF expectations and track European practice under MiCA, while keeping room for innovation.
What will change for VASPs in Georgia in 2025?
Short answer: stricter asset protection, clearer capital floors, and a staged path for startups. Expect requirements for client-asset segregation or independent custody, options for multisig controls, own-funds linked to operational risk, and a sandbox with phased obligations.
On this page, we outline what’s proposed, what it means for operations and banking, and how to prepare before the consultation opens.
Publish Date
3 Nov 2025
Reading Time
10 minutes
Category
Legal News
Jurisdiction
Georgia
Reform Overview
Georgia’s financial regulator is preparing a new set of rules that will significantly change how virtual asset service providers (VASPs) operate. The draft proposals—still under internal discussion—aim to bring the local framework closer to international standards by introducing asset-protection mechanisms, minimum capital, and a regulatory sandbox for innovation.
These changes follow the first wave of VASP regulation introduced in 2023, which required registration with the National Bank of Georgia (NBG) and basic AML compliance. The new phase focuses on financial soundness and risk control, marking a shift from registration to supervision.
Segregated Custody and Multisig Protection
Under the proposal, VASPs would need to separate client assets from company funds. In some cases, assets may have to be stored with an independent custodian who executes transfers on the provider’s instruction.
Another option under review is the use of multi-signature wallets that require two or more approvals to process transactions. Both models aim to protect client assets in case of insolvency and limit internal fraud risk.
For many operators, this will mean new partnerships with licensed custodians or investments in secure wallet infrastructure. Although compliance costs would rise, these safeguards could strengthen confidence in the Georgian crypto market.
Supervisory Capital and Risk Management
For the first time, VASPs may also be required to maintain supervisory capital—own funds that cover potential losses and operational risks. Georgia currently has no such requirement, unlike the EU’s MiCA regulation, which sets capital at €50,000–€150,000 or 25% of overheads, whichever is higher.
This step would bring Georgian rules in line with FATF recommendations and European practice, improving the resilience of licensed providers.
Regulatory Sandbox for New Entrants
A key innovation in the proposal is a regulatory sandbox that would allow newly registered or small VASPs to test business models without being subject to all obligations from day one. This approach could accelerate market entry for startups while preserving oversight by NBG.
What Comes Next
The draft rules are expected to be released for consultation later this year. If adopted, they would reshape the country’s virtual-asset industry—raising the bar for compliance but also creating demand for new custody, compliance, and cybersecurity solutions.
Legasset will continue to monitor the proposal and update once official details are published by the National Bank of Georgia.
For now you can explore our available Georgian crypto licenses.
FAQ: New VASP Regulations in Georgia
What are the main changes proposed for Georgian VASPs?
The new framework introduces client asset segregation, potential use of multi-signature wallets, and a supervisory capital requirement. It also proposes a regulatory sandbox where smaller or newly registered providers can test products under simplified conditions. Together, these reforms aim to align Georgia’s crypto rules with FATF and EU standards.
Will existing VASPs need to change their operations?
Yes. Registered providers will likely have to review their custody models, risk-management systems, and capital reserves. The National Bank of Georgia is expected to provide a transition period once final rules are approved, allowing firms to adapt without interrupting services.
How will the proposed sandbox help crypto startups?
The sandbox would let startups operate and test new business models under NBG oversight but with temporary relief from certain compliance obligations. This reduces entry barriers and encourages innovation in custody, payments, and wallet technologies, while maintaining basic consumer and AML safeguards.
When will the new requirements take effect?
The National Bank of Georgia is expected to publish the draft regulation for public consultation later in 2025. Implementation would follow after stakeholder feedback and parliamentary approval. Legasset will update this section as soon as the official draft is released.
