Georgia Central Bank Introduces Regulations for Stablecoin Issuance

The Georgian central bank has implemented new regulations allowing companies registered and licensed in Georgia to issue stablecoins pegged to fiat currencies, provided they are fully backed by reserve assets. According to PANews, users can redeem stablecoins at face value at any time, and issuers must meet capital requirements and undergo rigorous audits. Under the new rules, issuing entities must register with the central bank and obtain written permission, with a minimum regulatory capital of 500,000 lari (approximately $183,000). If reserve assets exceed 15 million lari (around $5.5 million), quarterly audits by one of the 'Big Four' accounting firms are required. Redemption requests up to 300,000 lari must be completed within three business days, while larger amounts require five business days. The regulations cover stablecoins linked to the Georgian lari, foreign currencies, or other assets, with a mandatory reserve coverage of 100%. Additionally, the assets must be clearly separated from the issuer's own assets.