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Expand Globally Through An E-money License in Georgia With the world moving towards digital transformation and making use of emerging technologies in the areas of cloud computing, AI, IoT, predictive analytics and big data, and blockchain among others, the need for online money has become all the more important. Moreover, with growing customer expectations, the demand for e-money to get services offering convenience and higher security has risen manifold. In fact, it has become an enabling technology to facilitate online transactions at the click of a mouse. The proliferation of payment gateways like Visa, Mastercard and Maestro has underscored the importance of online money in conducting eCommerce business.


Legal status of e-money E-money has been acknowledged as an important enabler of business by various governments and inter governmental bodies like the EU. Through its directive 2000/46/EC that was passed in September, 2000, EU has sought to regulate the use of e-money. Even though its legal status is not fully defined, e-money stands as a contractual obligation between the issuer and the holder. As per the definition, e-money is a promise that is made by its issuer to the holder, who in turn, can redeem it at face value. Also, as per the e-money directive that came into effect in April 2002 and implemented by the Financial Services Authority (FSA), there are a few conditionalities that guide the issuance and use of e-money. • • • •

E-money cannot be used as a credit instrument by its issuers. Issuers should ensure the security of e-money and protect it from business as well as technological risks. Tight controls to be exercised on e-money issuers related to investments in low risk areas. Issuers of e-money to be subjected to most of the provisions of FSA.

Types of e-money • •

Systems such as a microprocessor that stores the monetary value. Systems facilitating the transfer of funds from e-money accounts.

It is important to note that the above types are subjected to banking regulations. If you happen to deal with e-money as an issuer and are looking for a safe destination to grow your business, then Georgia in the Caucasus can be your choice. The country provides a level playing field for enterprises (local and foreign) dealing in e-money and has become a hub for them. By owning an emoney provider license in Georgia, you can safeguard yourself from being fined or getting blacklisted by the authorities of global financial markets. How to get an e-money license in Georgia? The license is provided by the National Bank of Georgia (read the regulator) to enterprises that are registered either as a joint stock company or a limited liability company. The financial services regulator in Georgia derives its powers from the law of payment system and payment services. There is no bar on foreign shareholders to obtain the license. Setting up a business in one of the free zones by obtaining an e-money provider license in Georgia can help you avail a number of incentives and tax breaks – enablers to grow your business. Source: http://www.kaukapital.com/2018/07/05/expand-globally-through-an-e-moneylicense-in-georgia/


Kaukapital Address: Lisi veranda, Tiripebi street 2, 0159 Tbilisi, Georgia Mobile: +995593760930 Email: info@kaukapital.com Website: www.kaukapital.com

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Expand Globally Through An E-money License in Georgia  

E-money has become an important enabler for global business. Take advantage of Georgia’s pro business environment by becoming an e-money pro...

Expand Globally Through An E-money License in Georgia  

E-money has become an important enabler for global business. Take advantage of Georgia’s pro business environment by becoming an e-money pro...

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