Natela Turnava, Governor of the National Bank of Georgia (NBG), recently signed an order formally establishing the legal framework for the issuance and circulation of stablecoins pegged to the Georgian currency. The new regulations allow companies registered and licensed in Georgia to issue stablecoins, covering categories pegged to the Georgian lari, foreign currencies, or other assets. Issuers must register with NBG as virtual asset servicers and ensure a 1:1 ratio of sufficient reserves, which must be strictly separated from the company's own assets. Regulators require issuers to have at least 500,000 lari (approximately US$183,000) in regulatory capital, which can increase to a maximum of 50 million lari as reserves grow. Furthermore, if reserves exceed 15 million lari, issuers must establish a supervisory board and engage top accounting firms, including the "Big Four," for quarterly audits. The new regulations also guarantee users' redemption rights, stipulating that issuers must complete redemption at face value within 3 to 5 business days. Georgia's move draws on international regulatory experience, including the US GENIUS Act and the EU MiCA, to enhance its compliance as a regional crypto hub. (Cryptopolitan)