Three of the 14 virtual asset entities targeted under the European Union’s 21st package of sanctions against Russia - LLC Aifory, LLC Abcex, and LLC Rapira Group - are incorporated in Georgia, however, none of these companies falls under the regulatory purview of the National Bank of Georgia [NBG]. Georgia’s central bank announced this in an official statement.

“Based on the information available to us, following an enquiry conducted by the relevant investigative authority into these companies, none of the sanctioned firms carried out operations within Georgia.

We would like to point out that the regulatory framework of the National Bank of Georgia imposes stringent market entry and operational requirements, serving as a vital filter against entities associated with unlawful activity.

Moreover, the regulatory framework for Virtual Asset Service Providers (VASPs) established by the NBG fully aligns with Financial Action Task Force (FATF) standards and international best practice. This was confirmed in the 2024 evaluation report by MONEYVAL (the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism).

According to the assessment, Georgia achieved a rating of ‘Largely Compliant’ regarding Recommendation 15 - which addresses compliance with new technologies and the regulation of VASPs. A comparable rating for this recommendation is held by countries such as the United Kingdom and France”, - reads the statement of NBG.

The Council of the European Union recently adopted its 21st sanctions package and extended transaction bans to 14 cryptocurrency-related platforms based in Georgia, Panama, the United Arab Emirates, the Marshall Islands, Kyrgyzstan, and Belarus. The package specifies a 6-month transition period before the transaction bans come into effect.