What Obligations Do VASPs Have?
In practice, VASPs are required to:
- register their activities and meet the supervisor’s requirements (how to prepare for NBG registration);
- identify and verify their customers (KYC procedures);
- assess and manage money laundering and terrorist financing risks (the risk-based approach);
- monitor transactions and report suspicious activity to the Financial Monitoring Service;
- maintain internal control mechanisms and a competent compliance function.
What Regulation Means for Customers and the Market
As a result, the industry has become more accessible, transparent and secure for customers. Customers can be more confident that they are entrusting their funds to a regulated, supervised company, while honest market players are more clearly distinguished from dishonest ones. Regulation also strengthens the sector’s credibility with banks and international partners, supporting the industry’s sustainable growth.
Of course, regulation does not eliminate risk entirely, but what once existed unchecked in an unregulated environment can now be identified, controlled and managed. The main challenge is for both companies and the supervisor to keep up with technological change and new criminal schemes, and continuous education and the training of qualified professionals play a decisive role in that.
Frequently Asked Questions
What is a VASP?
A virtual asset service provider: a company that exchanges, transfers, holds or manages crypto-assets on behalf of its customers.
Who supervises VASPs in Georgia?
The National Bank of Georgia.
Why does a VASP need an AML consultant?
Regulatory requirements are complex. Setting up internal policies, risk assessments, KYC and monitoring systems correctly saves time and reduces the risk of fines and reputational damage.
LC HUB: AML/CFT Consulting and Training
LC HUB (Legal & Compliance Hub) provides end-to-end support with AML/CFT compliance:
- designing AML/CFT frameworks, internal policies and procedures;
- NBG compliance and support through the registration/licensing process;
- risk assessment and regulatory reporting;
- certified AML training, including a VASP-focused masterclass.
📞 Contact us: +995 551 51 93 39