Overview of Georgia's Cryptocurrency Industry
Cryptocurrencies are making significant contributions to Georgia's economic development. With growing global interest in digital assets, Georgia has become increasingly attractive for international investments in this sector. The crypto industry fosters technological innovation and creates new business opportunities.
- Mining as an economic driver: Georgia ranks among the world's leading cryptocurrency mining destinations due to its abundant and low-cost electricity, positively impacting the local economy.
- Job creation: The sector generates employment in mining, IT, and financial services, enhancing workforce skills.
- Foreign investment: Crypto-related businesses attract foreign investors, strengthening Georgia's international economic ties.
- Financial inclusion: Cryptocurrencies provide banking alternatives for unbanked populations, promoting economic equality.
- Technological advancement: Blockchain innovations position Georgia as a hub for tech growth.
- Banking sector evolution: Traditional banks are adapting by offering digital financial products aligned with crypto trends.
These factors underscore cryptocurrencies' role in Georgia's economic diversification and innovation.
Regulatory Updates for Crypto Companies (Effective June 13, 2023)
- Video surveillance systems: Mandatory installation of internal/external cameras meeting government specifications. Footage must be stored securely for ≥30 days.
- Compliance reporting: Providers must notify the Ministry of Internal Affairs of any surveillance system failures (e.g., power outages).
- Operational continuity: Continuous recording from customer arrival to transaction completion is required.
- Security protocols: Companies must enable National Bank of Georgia inspectors to access internal systems during audits.
These measures enhance transparency and align crypto operations with national regulatory standards.
👉 Discover how Georgia's crypto regulations compare globally
Step-by-Step Process to Obtain a Crypto License
Company Registration Phases
| Stage | Description |
|---|---|
| Activity designation | Define scope (e.g., token trading, storage services, exchanges). |
| Legal structure | Register as an LLC or joint-stock company based on business needs. |
| Unique name | Secure a distinct company name via Georgia's commercial registry. |
| Location selection | Choose free industrial zones (FIZ) like Tbilisi or Batumi for tax benefits. |
| Bank account | Open corporate accounts with Georgian banks. |
| License application | Submit documentation to the National Bank of Georgia. |
Required Documentation
| Document | Details |
|---|---|
| License application form | Formal request to regulatory authorities. |
| Corporate charter | Legal structure and bylaws. |
| Management credentials | Resumes, diplomas, and professional certifications of executives. |
| Business plan | Detailed operational and growth strategies. |
| Product specifications | Technical descriptions of crypto services/products. |
| AML/KYC policies | Anti-money laundering and customer identification protocols. |
| Liability insurance | Coverage for potential losses. |
| Registration certificate | Proof of incorporation from Georgia's National Registry. |
| Executive IDs | Passport copies of company leadership. |
| Office verification | Lease agreements or property deeds. |
| Fund sourcing proof | Evidence of capital origins and ownership. |
| Infrastructure details | Technical setup supporting crypto operations. |
👉 Expert guidance on document preparation
Advantages of a Georgian Crypto License
Tax Incentives
- Profit tax exemption: FIZ-registered crypto firms pay 0% profit tax.
- Dividend tax waiver: Shareholders enjoy tax-free dividends.
- VAT exemption: Reduces operational costs for PPE-registered entities.
- Property tax relief: Lowers overhead for physical offices.
- Foreign ownership: Non-residents face no additional tax liabilities.
Banking and Investment Perks
- Crypto-friendly accounts: Local banks support fiat-crypto transactions.
- International payments: Facilitate cross-border trades seamlessly.
- Regulatory stability: Pro-government policies ensure operational security.
- Fintech adoption: Openness to blockchain innovations accelerates growth.
Opening a Corporate Bank Account
Key Steps
- Document preparation: Submit incorporation papers, charter, and executive signatures.
- Legalization: Apostille foreign documents; provide Georgian translations.
- Capital deposit: Activate account by transferring authorized capital.
Required Files
- Application form
- Certificate of incorporation
- Board resolution appointing directors
- Signed specimen signatures
- Apostilled/translated documents (if applicable)
Note: Requirements vary by bank—consult experts for specifics.
FAQ
Q: How long does the licensing process take?
A: Typically 4–8 weeks after complete documentation submission.
Q: Can non-residents own 100% of a Georgian crypto company?
A: Yes, Georgia permits full foreign ownership.
Q: Is physical office presence mandatory?
A: Yes, a registered local address is required.
Q: What’s the minimum capital requirement?
A: Varies by business type—consult regulators for updated thresholds.
Q: Are audits required annually?
A: Yes, compliant financial reporting is mandatory.
Pro Tips for Market Entrants
- Legal due diligence: Thoroughly analyze crypto regulations before incorporation.
- Optimal structure: Choose LLC/JSC based on scalability and liability needs.
- FIZ benefits: Leverage tax holidays in free industrial zones.
- Risk management: Hedge against crypto volatility and regulatory shifts.
- Cybersecurity: Implement robust protocols to deter breaches.
- Local networking: Engage with Georgian fintech communities and authorities.
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