Understanding сrypto licensing in Georgia
Georgia has become a hotspot for cryptocurrency innovation. In recent years, the government has embraced digital currencies by creating a clear legal framework. As of January 1, 2023, cryptocurrency businesses are officially regulated in Georgia. To protect consumers and align with international AML standards, the National Bank of Georgia (NBG) now requires crypto companies to register and obtain a special license known as a Virtual Asset Service Provider (VASP) license. In plain terms, a Georgia crypto license is the government’s stamp of approval that lets a company offer crypto-related services (like exchanges, wallets, or ICO platforms) legally in the country.
Georgia does not treat cryptocurrency as official money. Still, trading and owning crypto are fully permitted, and the new rules bring digital assets under the country’s AML framework. Put simply, crypto projects in Georgia must follow similar AML/KYC rules as banks or other financial companies.
For businesses, this is good news. This change shows Georgia’s friendly stance toward crypto: regulators want a clear, positive framework that protects users while making it easy for businesses to operate.
So what does this mean for you? If you plan to launch a crypto business in Georgia, securing the official license from the NBG is crucial. With it, you gain trust from banking partners and customers more easily.
What is a Georgia crypto license?
A Georgia cryptocurrency license (used here to mean a VASP license, for simplicity) is permission from the National Bank of Georgia to carry out virtual asset services. In practice, it’s often called a VASP license. With this license, a company can legally run cryptocurrency activities – for example, operating an exchange platform, managing crypto wallets, or helping to launch new token offerings. Without it, these businesses would be operating outside the law. So, in short, the crypto license is your business permit: it shows regulators you have the right company structure, policies, and oversight to safely handle digital currencies in Georgia.
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Types of crypto licenses available
Georgia’s licensing system is flexible. One VASP license can cover different kinds of crypto activities. For example, license holders may be authorized to provide:
Trading between cryptocurrencies and fiat money or between different digital coins (like Bitcoin for Lari, or Ethereum for USD).
Storing and managing clients’ crypto portfolios safely.
Running a crypto trading platform on behalf of users.
Conducting or facilitating new coin/token launches to raise project funds.
Moving crypto between wallets and enabling user-to-user transfers securely.
Lending crypto assets to businesses (note: lending to individuals is not allowed).
These activities are all part of Georgia’s broad definition of “virtual asset services.” In each case, the license ensures the company follows strict rules to protect users and the financial system.
Georgia cryptocurrency exchange license
Requirements for obtaining an exchange license
To get a Georgia crypto exchange license, your company must meet several key conditions. In plain language:
Incorporate a legal entity in Georgia (usually an LLC or JSC) and disclose all owners and directors. The National Bank will review applicants’ backgrounds, so all individuals must have no criminal or regulatory violations.
Appoint at least one director who is a Georgian resident, and rent a physical office in Georgia. This shows commitment to Georgian law and gives regulators a point of contact.
Develop solid AML and KYC policies. Your legal team and AML officers must ensure the documents correspond to your current transaction monitoring, risk assessment procedures, and internal audit processes.
Prepare a detailed business plan, technical architecture, and evidence of how you will securely store crypto. Regulators want proof that businesses can safely handle users’ funds.
Pay the state licensing fee and demonstrate you have enough startup capital to operate.
These requirements might sound strict, but they are typical for financial services. Think of them as Georgia’s checklist to make sure your exchange is trustworthy, secure, and above board.
A Georgia cryptocurrency exchange license authorizes trading platforms as a regulated VASP. In Georgia, any exchange that lets people swap crypto for fiat, fiat for crypto (or crypto for crypto) must hold this license. For example, known exchanges like UEEx, Cryptal, or even the local branch of Binance have obtained licenses from the NBG. Practically speaking, getting an exchange license follows the same VASP rules: you register as a company in Georgia and tick all the compliance boxes. The result is that your exchange can legally operate and offer trading services to customers in this jurisdiction.
Application process and timeline
Getting the license is a step-by-step process. In general, it looks like this:
Gather all necessary documents — company charter, shareholder IDs, office lease, AML/KYC manuals, and any other compliance records.
Register your entity in Georgia, establish the required office and hire a local director.
File the application with the National Bank of Georgia, attach all your policies, technical descriptions, and corporate documents.
The NBG will review your materials. Typically, this takes 60–180 days (around 2–6 months). They may ask follow-up questions, so responsiveness can speed things up.
Overall, startup owners report that obtaining a Georgian crypto license takes around 4–5 months on average. A straightforward, well-prepared application may move faster. After approval, you receive the crypto license from the NBG, and your crypto exchange can fully launch.
Cryptocurrency taxation in Georgia
Overview of Georgia’s Crypto Tax Laws
Georgia is famous for its quite crypto-friendly taxes. In most cases, crypto investors and businesses pay little or nothing. If you trade or sell crypto as a person, any profit you make is 0% taxable. In fact, Georgia exempts those gains from income tax entirely. Likewise, exchanging crypto for cash (or vice versa) is exempt from VAT. So a Georgian resident can buy and sell Bitcoin without worrying about capital gains tax on those trades.
If a company is engaged in crypto activities, it pays corporate income tax on its profits. Importantly, Georgia uses an “Estonian model”: companies only pay tax on distributed profits (like dividends). Retained earnings used for reinvestment are not taxed. This encourages businesses to grow without immediate tax hits. In short, Georgia’s cryptocurrency tax policy is designed to be simple and favorable.
Georgia’s Free Industrial Zones (FIZ) offer extra perks. Companies licensed in an FIZ can be fully exempt from corporate tax under certain conditions, and many crypto projects choose free zones for these benefits. Generally, Georgia does not apply VAT to cryptocurrency transactions. Crypto-to-fiat trades, mining revenues, and other exchanges are currently VAT-free.
Reporting and compliance requirements
Even with low taxes, businesses and individuals must follow Georgia’s reporting rules. Licensed crypto companies must file regular financial reports. This includes annual audited financial statements (usually under IFRS) and periodic regulatory filings to the Financial Monitoring Service (FMS). They also need to conduct internal compliance audits and submit suspicious activity reports as required.
Starting in 2023, Georgia joined the OECD’s Common Reporting Standard (CRS). This means Georgian banks will automatically share financial account information with other countries.
Also, licensed exchanges must comply with NBG and FMS AML rules. That includes verifying customer identities, monitoring transactions for red flags, and keeping detailed records. Regular inspections by authorities ensure ongoing compliance. The main point is that while Georgia may provide favorable tax treatment for crypto, it still enforces standard financial reporting and monitoring rules. Licensed businesses should budget for professional accounting and compliance legal support to meet these ongoing obligations.
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Benefits of getting a crypto license in Georgia
Georgia has a lot to offer crypto entrepreneurs.
Low Taxes
The tax regime is favorable. Beyond 0% gains tax, corporate crypto companies face 15% tax on profits, but only when distributed. There is no VAT on crypto trades, and free zone benefits mean many startups can effectively operate with 0% VAT and 0% dividend tax.
Regulatory Clarity
Holding a Georgian license provides a clear legal framework. Without it, banks and partners refuse to cooperate due to compliance risks (KYC/AML). This helps businesses avoid unexpected legal problems and build trust with customers.
Crypto-Friendly Reputation
Georgia is ranked among the world’s top crypto-friendly countries. It has one of the largest Bitcoin mining sectors (thanks to cheap electricity) and a tech-savvy talent pool. This ecosystem attracts other crypto companies, creating a supportive business environment.
Strategic Location
With its strategic location between Europe and Asia, Georgia often positions itself as an international hub. Licensed companies benefit from easy market access and minimal restrictions on foreign ownership, allowing 100% foreign ownership and simpler expansion.
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