Crypto license in Georgia

Georgia, nestled at the crossroads of Eastern Europe and Western Asia, exhibits a dynamic business environment shaped by its strategic location, rich cultural heritage, and ongoing economic reforms. The country has made significant strides in recent years to foster a conducive atmosphere for business management.

A key factor contributing to Georgia’s appeal for businesses is its commitment to economic liberalization. The government has implemented various reforms to streamline bureaucratic processes, reduce corruption, and enhance the overall ease of doing business. This has resulted in a more business-friendly environment, attracting both domestic and foreign investors.

PROCEDURE FOR OBTAINING A VASP LICENSE IN GEORGIA

Securing a license for a Virtual Asset Service Provider in Georgia involves a two-step process. The essential factor for a smooth license acquisition is receiving sufficient assistance from a legal firm, guiding you through accurate document preparation and submission. The key steps are mentioned as follows:

1. Preparation of necessary documentation

Determining the shareholding structure.

Passport copies of all future shareholders, UBOs and directors

Proof of residential addresses of all participants (utility bill/bank statement)

Description of the planned activities/project

CVs of all participants with their background

2. Licensing application

Company name check and verification

Preparation of legal documents

Finding a local office in Georgia

License application documents submission to the National Bank of Georgia

Corporate account opening

Our team at Regulated United Europe would be happy to support you in starting your crypto business in Georgia. The experts with extensive experience would be delighted to support you in preparing the relevant documentation for the license application in Georgia.

REGULATION OF CRYPTOCURRENCY IN GEORGIA

Recently, the cryptocurrency sector in Georgia operated without legislative regulation by the government. However, a significant shift occurred in early 2023 when new regulations governing cryptocurrency activities were introduced. On July 1, 2023, the Law on Virtual Asset Service Provider (VASP) Registration Procedure officially took effect.

The primary objective of this legislation is to combat the potential misuse of virtual assets, including cryptocurrencies, for activities such as money laundering and terrorist financing. The inherent anonymity of these assets poses challenges in tracking transactions, prompting the need for increased control and transparency in the sector. Consequently, every company holding a Georgian crypto license is obligated to adhere to Anti-Money Laundering/Know Your Customer (AML/KYC) regulations.

It’s noteworthy that the law does not confer the status of a means of payment to cryptocurrencies, and the official legal currency remains the Georgian lari (GEL). Simultaneously, the new regulations explicitly prohibit treating a virtual asset on par with legal tender. A virtual asset, as per the law, is defined as a digital unit of value with interchangeability but lacking uniqueness. It can be electronically transferred or sold, functioning as a medium of payment or investment. Interestingly, the definition of a virtual asset excludes digital forms of cash, securities, and other financial instruments, while items like NFTs and collectibles are not subject to the new rules. However, cryptocurrency falls under the regulatory purview.

In accordance with the recent legislation, every cryptocurrency company is mandated to register with the National Bank and obtain a license for its operations.

Licensing for Virtual Asset Service Provider in Georgia allows performing following services:

• Transfer and/or storage/administration of virtual assets.
• Administration of a trading platform.
• Exchange (including through self-service terminals) in national or foreign currency, other virtual assets, financial instruments, primary placements, services related to primary offerings, portfolio management (except collective portfolio management), and lending of virtual assets.

KEY REQUIREMENTS FOR STARTING A CRYPTO BUSINESS IN GEORGIA

The key requirements for the process of opening a crypto business in Georgia involves following:

1. Establish a limited liability company (LLC) or a joint stock company (JSC), allowing ownership by individuals from any country.
2. Furnish the regulator with comprehensive information about each owner of the company, including those residing outside the country.
3. Validate the absence of any criminal records for both directors and beneficiaries.
4. Affirm the enterprise’s satisfactory solvency level for providing exchange services and safeguarding crypto assets.
5. Employ at least one local director for the company.
6. Execute a lease agreement for a local private office.
7. Remit the state fee for the license application, amounting to 5,000 GEL (approximately 2,000 USD).
8. Submit the regulator with Anti-Money Laundering/Know Your Customer (AML/KYC) Policies.
9. Verify the presence of robust systems to prevent, detect, and disclose financial crime risks, including money laundering and terrorist financing, as part of AML/KYC compliance.
10. The company’s founders must provide the regulators with a realistic business plan, a service list, and a detailed description of protective measures against hacker attacks.
11. After acquiring the license, ensure compliance with regular audits and maintain accurate accounting records.

LICENSE ACQUISITION TIMELINE

Navigating the process of obtaining a Virtual Asset Service Provider (VASP) license in Georgia entails traversing a meticulously crafted timeline, marked by essential milestones. The regulatory framework meticulously delineates a systematic approach, streamlining the application and approval process. As companies progress through this journey, the licensing timeline is thoughtfully structured for efficiency, with the primary goal of providing transparency and regulatory oversight while minimizing unwarranted delays. The implementation of a well-defined licensing procedure for VASPs exemplifies Georgia’s proactive stance in cultivating a secure and regulated environment within the cryptocurrency sector. This strategic initiative is geared towards fostering trust, reliability, and legal adherence, reflecting the nation’s commitment to staying ahead in the ever-evolving landscape of digital assets.

For companies aspiring to operate as VASPs in Georgia, a pivotal aspect is the adherence to the established timeline. Compliance with the regulatory framework is not only a legal obligation but also a strategic imperative in establishing a foothold within the burgeoning cryptocurrency market.

The National Bank, as the regulatory authority overseeing this process, commits to issuing a decision on license acquisition within a timeframe of two months from the date of application submission. It is crucial to note, however, that this stipulated timeframe may be subject to adjustments should the National Bank necessitate additional documentation. Therefore, the duration of the entire process hinges on the responsiveness of the applying company to any supplementary requests made by the National Bank.

In essence, the license acquisition timeline in Georgia is a dynamic and collaborative process. It not only reflects the commitment of the regulatory authorities to expeditiously evaluate and approve applications but also underscores the importance of timely and comprehensive responsiveness from the applying entities. By adhering to this well-structured timeline, companies can navigate the regulatory landscape with confidence, fostering a regulatory-compliant and secure environment for their cryptocurrency operations in Georgia.

ADVANTAGES FOR STARTING A CRYPTO BUSINESS IN GEORGIA

Starting a crypto business in Georgia presents several advantages that contribute to the appeal of the country for entrepreneurs in the cryptocurrency sector:

1. Liberal Regulatory Environment: Georgia has adopted a relatively liberal regulatory environment for cryptocurrencies. The government has demonstrated a proactive approach by introducing legislation to regulate the sector, providing clarity and legal frameworks for businesses to operate within.
2. Streamlined Licensing Process: The licensing process for Virtual Asset Service Providers (VASPs) in Georgia is designed to be efficient. The regulatory framework outlines a systematic approach, and the National Bank aims to issue decisions on license acquisition within a specified timeframe, promoting a transparent and expedited process.
3. Strategic Location: Situated at the crossroads of Eastern Europe and Western Asia, Georgia’s strategic location makes it a key player in regional trade. This geographical advantage enhances the potential for crypto businesses to tap into diverse markets and establish connections with both European and Asian counterparts.
4. Growing Tech Ecosystem: Georgia is fostering a growing technology ecosystem, with a focus on innovation and digital transformation. This is conducive to the development and growth of cryptocurrency and blockchain-related businesses, as there is a pool of skilled professionals and support for technological advancements.
5. Entrepreneurial Spirit: Georgia has a vibrant entrepreneurial spirit, with a supportive ecosystem for startups. The government’s commitment to economic liberalization and business-friendly policies encourages innovation and investment in various sectors, including the cryptocurrency industry.
6. Low Tax Rates: Georgia is known for its favorable tax environment. The country has relatively low corporate income tax rates, which can be attractive for businesses seeking to optimize their financial structures and maximize profits.
7. Strategic Infrastructure Development: Georgia has invested in developing modern infrastructure, including transportation networks and logistics capabilities. This facilitates efficient business operations, especially for companies involved in the movement and storage of virtual assets.
8. Diversification Opportunities: The cryptocurrency sector in Georgia is relatively new and provides opportunities for businesses to pioneer and diversify their operations. Being an early adopter in a developing market allows companies to establish a strong presence and potentially benefit from future growth.
9. Cultural Richness: Georgia’s rich cultural heritage and openness to international collaboration can contribute to creating a diverse and dynamic business environment. The country’s hospitality and willingness to engage with different cultures can be advantageous for building global business connections.

While these advantages make Georgia an appealing destination for starting a crypto business, entrepreneurs should also consider the challenges and continuously evolving regulatory landscape to make informed decisions.

At Regulated United Europe, we take pride in offering comprehensive support to guide you through the establishment of your cryptocurrency business in Georgia. Our team of seasoned experts, equipped with extensive industry knowledge, is eager to assist you at every step of the process. Embarking on the journey of initiating a crypto venture in Georgia requires meticulous attention to detail and adherence to regulatory requirements. Our dedicated professionals specialize in providing tailored assistance, ensuring that you are well-prepared to navigate the intricacies of the licensing application process in Georgia.

From the intricacies of document preparation to the submission of your license application, our experts are committed to delivering a seamless experience. Recognizing the unique challenges posed by the cryptocurrency sector and the specific nuances of Georgia’s regulatory landscape, our team is well-equipped to address your needs effectively. By choosing Regulated United Europe as your partner, you gain access to a wealth of knowledge and a network of resources that can significantly enhance your prospects in the crypto business realm. Whether you are a seasoned entrepreneur or entering the cryptocurrency market for the first time, our support is tailored to your specific requirements. In addition to our proficiency in navigating the legal intricacies, we prioritize client satisfaction and ensure that you receive personalized attention throughout the process. Our commitment extends beyond the successful acquisition of your crypto license in Georgia; we aim to establish a lasting partnership that contributes to the sustained growth and compliance of your business.

Partner with Regulated United Europe, and let our experts pave the way for your crypto business success in Georgia. Your aspirations, backed by our knowledge and experience, form the foundation for a prosperous venture in this dynamic and evolving industry.

Crypto company registration in Georgia

Registering a cryptocurrency company in Georgia represents an attractive opportunity for entrepreneurs and investors due to the favourable tax regime, relatively simple registration procedures and an innovative and supportive regulatory environment. Georgia has established itself in recent years as an open economy with an interest in attracting foreign capital, including in the digital currency sector.

Step 1: Determining the type of business and the appropriate legal form

The first step is to determine the type of your cryptocurrency business (e.g. cryptocurrency exchanger, mining operation, blockchain startup, etc.) and choose the appropriate legal form for your activities. In Georgia, popular forms for foreign investors are Limited Liability Company (LLC) and Joint Stock Company (JSC).

Step 2: Company registration

In order to register a company, an application must be submitted to the National Agency for State Registration under the Ministry of Justice of Georgia. The process can be done remotely via the internet, which makes it convenient for foreign investors. The documents usually required for registration include incorporation documents, proof of identity of the founders and director, and proof of the company’s legal address in Georgia.

Step 3: Opening a bank account

After registering a company, the next step is to open a corporate bank account. There are several banks in Georgia that are friendly to the cryptocurrency sector. Opening an account may require corporate documents, passports of the founders and directors, and a detailed description of the business model.

Step 4: Tax registration and record keeping

Companies incorporated in Georgia are required to keep records of their financial activities and file tax returns in accordance with local legislation. Georgia offers an attractive tax regime, including a flat corporate income tax of 15% and incentives for international companies to take advantage of special economic zones with even lower tax rates.

Step 5: Compliance with regulatory requirements

Georgia is actively working to create a favourable regulatory environment for cryptocurrency companies, but changes in legislation and regulatory requirements need to be closely monitored. This includes licensing requirements for certain activities, such as cryptocurrency exchanges or cryptocurrency trading platforms, as well as compliance with KYC (know your customer) and AML (anti-money laundering) policies.

Step 6: Intellectual property and data protection

Cryptocurrency and blockchain companies should pay special attention to the protection of intellectual property and user data. Georgia has laws on copyright and trademark protection and personal data protection that comply with international standards.

Step 7: Obtaining specialised licences (if necessary)

Depending on the specific nature of your cryptocurrency company’s business, specialised licences may be required. For example, activities in the field of payment systems or the provision of cryptocurrency wallet services may be subject to additional regulatory requirements. Contacting the National Bank of Georgia or the relevant regulatory authorities will help clarify these requirements.

Step 8: Integrate with the local cryptocurrency ecosystem

Successfully integrating with the local cryptocurrency ecosystem can help your business grow and develop. Attending events, conferences, and meetups with other entrepreneurs in the field will not only help you strengthen your connections, but also keep you up to date with the latest trends and opportunities in the industry.

Conclusion

Registering a cryptocurrency company in Georgia offers unique opportunities due to its favourable tax environment, flexible regulatory policy and openness to innovation. Careful planning, compliance with all regulatory and tax requirements, and active participation in the local ecosystem will allow your business to succeed in the international cryptocurrency market.

 Crypto legislation in Georgia

Georgia’s cryptocurrency legislation is being shaped as part of the country’s ambition to become one of the leading centres of the digital economy and blockchain technology. Despite its openness to innovation and attractive investment climate, Georgia approaches regulation of the cryptocurrency industry with caution, seeking to balance the innovative potential of the technology with the need to protect investors and financial stability.

General overview of legislation

To date, Georgia has not adopted specialised legislation fully regulating the cryptocurrency sphere. However, a number of existing laws and regulations indirectly affect digital currency transactions, especially in the aspects of taxation, financial monitoring and anti-money laundering.

Taxation of cryptocurrencies

The main document defining the tax regime for cryptocurrency transactions is the Tax Code of Georgia. Cryptocurrencies are not recognised as legal tender in Georgia, however, income received from cryptocurrency transactions is subject to taxation. For individuals, the income tax is 20 per cent, while legal entities are subject to corporate income tax at the rate of 15 per cent.

Regulation of cryptocurrency platforms

Although there is no specific licensing for cryptocurrency exchanges or wallets in Georgia, such entities must comply with general financial law requirements, including anti-money laundering (AML) and financial monitoring regulations. The National Bank of Georgia performs supervisory functions and may impose financial reporting and recordkeeping requirements.

Protection of investors’ rights

The protection of investors’ rights in the cryptocurrency sector in Georgia does not yet have specialised regulations, and such issues are regulated by general consumer protection and anti-fraud laws. Investors and users of cryptocurrency services should be aware of the risks associated with the high volatility of digital assets and the lack of guarantees for the return of funds in the event of platform bankruptcy or force majeure.

Prospects for the development of legislation

Georgia is actively working to create a favourable economic and legal environment for the development of technology and innovation, including cryptocurrencies and blockchain. The authorities seek to attract technology startups and investments to the country, while ensuring transparency of operations and protection of market participants. In this context, further development and clarification of the legal framework is expected. The main areas in which the legislation may be expanded are:

1. Licensing and regulation

The emergence of clear licensing requirements for cryptocurrency exchanges, ICO (initial coin offering) platforms and other cryptocurrency-related services will help build confidence in the sector and increase its stability.

2. AML/CFT policies

Strengthening anti-money laundering and counter-terrorist financing policies in the cryptocurrency sector will help legitimise and integrate it into the global financial system. This includes stricter requirements for user identification and transaction tracking.

3. Protection of investors’ rights

The development of specialised regulations aimed at protecting the rights of cryptocurrency investors can improve the investment climate and attract more capital to innovative projects.

4. Taxation

The clarification of the tax regime for cryptocurrency transactions and the possible introduction of favourable tax rates for startups and technology companies contribute to the creation of a competitive economic environment.

Conclusion

Georgia’s cryptocurrency legislation is at the stage of development and adaptation to the rapidly changing digital landscape. The country demonstrates openness to innovation and readiness to create conditions for the growth and development of new technologies. Further deepening of the regulatory framework and creation of favourable conditions for cryptocurrency companies may make Georgia one of the key players in the international arena in the field of blockchain technologies and cryptocurrencies.

Georgia – main information

Crypto exchange licence Georgia

Obtaining a licence for a cryptocurrency exchange in Georgia is becoming an increasingly hot topic for entrepreneurs and investors attracted by the country’s progressive economic policy and openness to digital innovation.

Review of the legislative framework

Georgia currently has no specialised legislation that directly regulates cryptocurrency exchanges. However, this does not mean that there is no legal framework or regulatory clarity. The activities of cryptocurrency exchanges are subject to general legislation regulating financial activities, including anti-money laundering (AML) and financing of terrorism (CFT) laws, as well as financial reporting requirements.

Steps for obtaining a licence

1. Company registration

The first step is to register a legal entity in Georgia. For this purpose, it is necessary to decide on the type of company and prepare an appropriate package of documents, which includes constituent documents, data on owners and directors, as well as information on the legal address of the company in Georgia.

2. Opening a bank account

After registration of the company, a corporate bank account should be opened in one of the banks of Georgia. This requirement is necessary for conducting financial transactions and confirming financial stability.

3. Preparing for regulatory requirements

Companies wishing to obtain a cryptocurrency exchange licence must develop internal policies and procedures that comply with AML/CFT requirements, as well as install systems for customer identification and verification (KYC).

4. Submitting an application for a licence

While no direct licence is required to operate a cryptocurrency exchange, the company must notify the relevant regulatory authorities of its activities and provide all necessary compliance documents.

5. Ongoing compliance with regulatory requirements

Once a cryptocurrency exchange has commenced operations, it is important to ensure ongoing compliance with all regulatory and legal requirements, including conducting regular audits, filing financial statements and updating internal procedures in line with changes in legislation.

6. Interaction with the National Bank of Georgia

Despite the lack of direct licensing requirements for cryptocurrency exchanges, it is important to maintain an open dialogue with the National Bank of Georgia. This will help ensure compliance with future regulatory changes and support from the country’s financial regulator.

7. Transparency and accountability

To maintain the trust of users and regulators, a cryptocurrency exchange must ensure a high level of transparency in its operations. This includes publishing reports on compliance with AML/CFT requirements, information on security measures and policies to protect user data and funds.

8. Technological safety

A key aspect of a cryptocurrency exchange’s activities is ensuring a high level of technological security. Inclusion of measures to protect against cyberattacks, implementation of reliable asset storage systems and regular system security testing are mandatory to protect client assets.

Conclusion

Although the process of obtaining a cryptocurrency exchange licence in Georgia may seem less formalised compared to other jurisdictions, companies must strictly follow local legislation and regulatory requirements, especially in terms of AML/CFT, financial reporting and customer protection. Compliance with these requirements will not only ensure the legality of operations in Georgia, but also contribute to the creation of a transparent and safe cryptocurrency market.

Georgia continues to develop as an attractive jurisdiction for cryptocurrency companies due to its innovative economic policies and openness to new technologies. However, companies should closely monitor and adapt to possible changes in the regulatory environment in order to successfully conduct business.

 Crypto trading licence Georgia

In recent years, Georgia has established itself as one of the leading centres of the cryptocurrency industry due to its progressive regulatory policies and openness to innovation. A crucial aspect of this policy is the introduction of licensing for cryptocurrency trading, which both protects investors and supports healthy competition in the market.

1. Transparency and accessibility of the licensing process

Georgian regulators have created a transparent and understandable licensing system that helps attract international investment into the country’s cryptocurrency sector. The process of obtaining a licence involves submitting a comprehensive set of documents to prove a company’s compliance, including anti-money laundering (AML) measures, Know Your Customer (KYC) policies, and security and data protection plans.

2. Strengthening investor confidence

Cryptocurrency trading licensing plays a key role in building investor confidence by ensuring a high level of transparency and security of operations. Companies that have undergone the licensing process automatically raise their status in the eyes of consumers and partners, which helps to increase trading volumes and attract new customers.

3. Supporting innovation and competition

Georgia’s regulatory policy is aimed not only at ensuring security and protecting the rights of market participants, but also at encouraging innovation and healthy competition. Licensing opens the door for SMEs to participate in the cryptocurrency market, promoting diversity of services and products, and encouraging technological development of the industry.

4. Interaction with global standards

Obtaining a licence for cryptocurrency trading in Georgia opens the way for companies to gain international recognition and cooperation. Compliance with the established norms and standards makes the Georgian crypto market attractive for foreign investors and partners, contributing to the country’s integration into the global economy of digital assets.

Conclusion

The licensing of cryptocurrency trading in Georgia is a significant step towards creating a secure, transparent and innovative ecosystem of digital assets. This process not only helps protect the interests of market participants, but also opens up new business opportunities, strengthening the country’s position as one of the leaders in the cryptocurrency industry.

 How to get a crypto licence in Georgia?

Over the past decade, Georgia has firmly established itself as one of the world leaders in the cryptocurrency industry, offering a favourable environment for the development of blockchain technology and cryptocurrency trading. The Georgian government has developed a clear and efficient licensing process to help attract investment and innovative technologies to the country.

1. Preparing for the licensing process

The first step to successfully obtaining a licence is careful preparation and collection of the necessary documentation. Companies must develop internal policies and procedures that comply with Georgian legal requirements, including in the areas of Anti-Money Laundering (AML), Know Your Customer (KYC), and data security and privacy policies.

2. Registration of a legal entity in Georgia

To start the licensing process, it is necessary to have a registered legal entity on the territory of Georgia. The registration process is relatively simple and does not require significant investment of time and resources. This provides entrepreneurs with flexibility in choosing the legal form of organisation, be it a private enterprise, joint stock company or limited liability.

3. Submitting an application for licence

After registering a company, entrepreneurs must apply for a licence to the relevant regulatory body in Georgia. It is important to precisely follow all instructions and requirements specified in the regulatory documents, including providing a complete set of documents and information about the company.

4. Compliance with security requirements and policies

A key element of the licensing process is for a company to demonstrate its ability to comply with high standards of security and business conduct policies. This includes developing and implementing robust technology solutions and policies that protect customer data and prevent financial crime.

5. Verification process and licence issuance

After submitting the application and all necessary documents, the regulator will conduct a thorough inspection of the company for compliance with the established requirements. If the company successfully passes the inspection, it will be issued a licence to conduct cryptocurrency activities, which is a sign of quality and reliability for clients and partners.

Conclusion

Obtaining a cryptocurrency licence in Georgia is an important step for companies seeking to operate within a legal and regulated market. With a well-organised process and government support, Georgia offers a favourable environment for cryptocurrency business development, fostering innovation and growth in this dynamic industry.

Advantages of Georgia crypto licence

In the era of the digital economy, cryptocurrencies continue to play an increasingly significant role in global financial transactions. Georgia, a country with a developed technological infrastructure and a favourable regulatory climate, offers unique opportunities for companies seeking to conduct cryptocurrency activities. Obtaining a cryptocurrency licence in Georgia offers businesses a number of strategic advantages that can significantly accelerate growth and development in this new economic environment.

1. Legal clarity and stability

One of the key benefits of licensing in Georgia is the legal clarity and stability it provides. Georgia’s regulatory authorities have developed clear and transparent criteria for cryptocurrency operations, removing legal uncertainty and providing companies with confidence in the legality of their activities. This creates a favourable basis for long-term planning and investment.

2. Improved corporate image and customer confidence

Licensed companies automatically raise their status in the market, building trust among customers and partners. Holding a licence demonstrates a commitment to high standards of security, transparency and corporate ethics, which is a significant competitive advantage in an industry where trust is crucial.

3. Access to international markets

Obtaining a Georgian cryptocurrency licence can be an important step for companies looking to expand their presence in international markets. A licence increases a company’s legitimacy in the eyes of foreign regulators and partners, facilitating the process of entering into international agreements and expanding business beyond national borders.

4. Financial incentives and tax benefits

Georgia offers a number of financial incentives and tax benefits for cryptocurrency companies, which makes obtaining a licence even more attractive. Low tax rates, combined with relatively low operating costs, contribute to the profitability and investment attractiveness of licensed cryptocurrency operations.

5. Attracting investments

Licensed cryptocurrency companies in Georgia have the best chance of attracting investment, as investors often prefer to invest in businesses that operate within a clear legal environment. Having a licence serves as proof of a company’s reliability and sustainability, which is important for investors when making funding decisions.

Conclusion

Obtaining a cryptocurrency licence in Georgia gives companies access to a number of significant benefits that can significantly contribute to their growth and success in the rapidly evolving world of the digital economy. From legal clarity to international recognition, from tax benefits to improved corporate image, the benefits of licensing in Georgia make the process a key strategic decision for any cryptocurrency company seeking innovation and sustainability.

Benefits of crypto licence in Georgia

Georgia has long been recognised as one of the most attractive jurisdictions for cryptocurrency business due to its progressive regulatory environment and openness to innovation. Obtaining a cryptocurrency licence in this country provides companies not only legitimacy, but also a number of important competitive advantages.

1. Legal certainty and improvement of the business environment

The main advantage of obtaining a licence is the legal certainty it provides. Regulatory recognition eliminates legal uncertainty, allowing companies to operate within a well-defined legal environment. This not only makes it easier to plan and execute long-term business strategies, but also increases confidence among customers and investors.

2. Access to new markets and international recognition

A licence issued in Georgia opens the door for companies to enter international markets. This recognition facilitates business relationships with banks, payment systems and other financial institutions that may be sceptical about cooperating with unregulated cryptocurrency companies. In this way, licensing facilitates business expansion and scaling up.

3. Tax exemptions and economic incentives

Georgia offers attractive tax conditions for cryptocurrency companies, including low tax rates and incentives for foreign investors. Obtaining a licence allows companies to take full advantage of these benefits, optimise their tax burden and increase the overall profitability of their business.

4. Attracting investment and partnerships

Licensed cryptocurrency companies in Georgia have more opportunities to attract investments, as the licence serves as a proof of reliability and stability of the company. This makes it much easier to find investors and strategic partners willing to invest in a proven and regulated business.

5. Building trust on the part of clients

The licence confirms that the company meets all regulatory requirements, including Anti-Money Laundering (AML) and Know Your Customer (KYC) measures. This strengthens customer confidence and enhances the company’s attractiveness as a reliable cryptocurrency service provider.

Conclusion

Obtaining a cryptocurrency licence in Georgia is a strategically important step for any company operating in this field. The advantages that licensing provides, including legal certainty, tax benefits, increased customer confidence and access to international markets, make Georgia one of the most attractive jurisdictions for cryptocurrency businesses. Investing resources in obtaining a licence is an investment in the future of your business, opening up new opportunities for growth and development.

 Overview of crypto regulation in Georgia

In recent years, Georgia has established itself as one of the leading regions in blockchain technology and cryptocurrencies, offering a progressive and favourable regulatory environment for the growth and development of the cryptocurrency industry. This overview aims to provide a clear picture of the current state of cryptocurrency regulation in Georgia, highlighting key points that may be of interest to investors and entrepreneurs seeking to do business in this jurisdiction.

1. Regulatory framework and licensing

Georgia provides an attractive regulatory framework for cryptocurrency companies by not requiring strict licensing to conduct most cryptocurrency activities. This creates a favourable environment for start-ups and established businesses wishing to explore the possibilities of blockchain and cryptocurrencies. However, specific licences or permits may be required for certain activities, such as fiat currency transactions or money transfers.

2. Taxation

Georgia stands out among many countries due to its simple and transparent tax system. Cryptocurrency transactions are in most cases not subject to value added tax (VAT), which makes the country attractive for cryptocurrency businesses and investors. Profits from cryptocurrency transactions are subject to corporate tax at the standard rate, which requires careful planning and accounting.

3. Anti-money laundering (AML) and know-your-customer (KYC) activities

Georgia is actively working to comply with international standards in the field of anti-money laundering and combating the financing of terrorism. Cryptocurrency companies must implement AML/KYC policies to ensure the transparency of their operations and prevent financial crime. These measures contribute to the creation of a safe and secure environment for cryptocurrency businesses.

4. Innovation environment and government support

The Government of Georgia actively supports the development of blockchain and cryptocurrency technologies, seeing them as important tools for economic growth and attracting foreign investment. In addition to a favourable regulatory climate, the government offers various support programmes and incentives for technology startups and innovative projects.

5. Prospects and challenges

Despite the many benefits, cryptocurrency regulation in Georgia continues to evolve and companies need to stay abreast of the latest changes in legislation and regulatory requirements. The rapid development of the cryptocurrency industry may lead to the introduction of new rules and regulations, which requires companies to be flexible and adapt to changes.

Conclusion

Georgia represents one of the most attractive jurisdictions for cryptocurrency businesses due to its progressive regulatory environment, simple tax system and support for innovative technologies. At the same time, successfully doing business in this area requires an understanding of local regulation, taxation and AML/KYC obligations. Companies willing to invest time and resources in learning these aspects can expect significant growth and development opportunities in the Georgian cryptocurrency market.

 Types of applications for crypto licence in Georgia

Georgia occupies one of the leading positions on the map of the global cryptocurrency market, offering favourable conditions and a simple procedure for obtaining a licence to conduct cryptocurrency activities. This creates unique opportunities for entrepreneurs and investors looking to explore the digital asset space in a legally clean and regulated environment.

1. Licence to exchange cryptocurrencies

This type of licence allows companies to officially exchange cryptocurrencies for fiat money and vice versa, as well as exchange one cryptocurrency for another. Obtaining a cryptocurrency exchange licence requires companies to prove their ability to meet regulatory requirements, including anti-money laundering (AML) measures and customer identification requirements (KYC).

2. Licence to carry out payments in cryptocurrency

This type of licence is for companies that want to offer their customers the ability to make cryptocurrency payments for goods and services. A payment licence requires applicants to provide a detailed description of their payment systems and processes, as well as proof of compliance with local and international payment security standards.

3. Licence for custodial services

Custodial services involve the safekeeping of cryptocurrency assets on behalf of clients. Companies seeking a custodial services licence must demonstrate that they have robust security and governance mechanisms in place to protect clients’ assets, including the physical and digital security of their infrastructure.

4. Licence for cryptocurrency exchanges

This type of licence is required for cryptocurrency transactions on an organised trading platform where traders can buy and sell cryptocurrencies according to current market rates. A licence for cryptocurrency exchanges requires companies to have an advanced trading infrastructure and effective tools to monitor transactions in real time.

Application process and requirements

Regardless of the type of licence, companies must provide a range of documents and information to demonstrate their compliance with regulatory requirements. This includes financial statements, detailed business plans, descriptions of internal policies and procedures, and information about the managers and owners of the business. An important aspect is proof of the company’s ability to comply with AML/KYC requirements and ensure a high level of security of operations and customer data.

Conclusion

Obtaining a cryptocurrency licence in Georgia gives entrepreneurs access to one of the fastest growing sectors of the digital economy. Each type of licence has different requirements and offers unique business opportunities, highlighting the importance of careful planning and preparation of the application. With the right approach and regulatory compliance, companies can realise the full potential of the cryptocurrency market in Georgia, expanding their operations and contributing to innovation in the global economy.

 How to gen crypto licence in Georgia?

Georgia attracts the attention of the global cryptocurrency community with its openness to innovation and progressive approach to regulating digital assets. Obtaining a cryptocurrency licence in this country is a key step for companies wishing to legalise their operations and gain access to the growing digital finance market.

1. Study of the regulatory environment

Before applying for a licence, it is crucial to conduct a thorough research of the regulatory environment in Georgia. This includes familiarising yourself with current laws, regulations and requirements for cryptocurrency activities. Particular attention should be paid to Anti-Money Laundering (AML) requirements and Know Your Customer (KYC) procedures.

2. Registration of a legal entity

In order to obtain a cryptocurrency licence in Georgia, it is necessary to have a registered legal entity in this jurisdiction. The registration process includes choosing the legal form of the business, submitting the relevant documents to the National Agency for State Registration and paying the state duty.

3. Preparing and submitting an application for a licence

After registering a legal entity, the next step is to prepare and submit an application for a cryptocurrency licence. The application should include a detailed business model, a description of the company’s internal policies and procedures, and documents confirming compliance with AML/KYC requirements. It is important to ensure that the information provided is complete and accurate to avoid delays in the application process.

4. Proof of compliance with safety requirements

Companies applying for a cryptocurrency licence must prove their ability to protect customer data and assets. This includes having robust cybersecurity, systems in place to protect against hacker attacks, and procedures to regularly monitor and audit security systems.

5. Obtaining a licence and launching operations

Upon successful review of the application and documents by the regulator, the company receives a cryptocurrency licence, which allows it to officially start operations in Georgia. It is important to continue to comply with all regulatory requirements and norms after obtaining the licence, including filing regular reports and complying with AML/KYC policies.

Conclusion

The process of obtaining a cryptocurrency licence in Georgia requires careful preparation and attention to detail. However, thanks to its transparent regulatory environment and support for innovative businesses, Georgia is an attractive jurisdiction for cryptocurrency companies. By following the steps outlined above and maintaining high operational standards, companies can successfully obtain a licence and do business in this dynamic sector.

 Types of crypto licences in Georgia

In recent years, Georgia has established itself as one of the most attractive jurisdictions for cryptocurrency businesses due to its progressive regulatory policies and openness to innovation. By offering different types of cryptocurrency licences, Georgia creates a favourable environment for a wide range of digital asset activities.

1. Licence to exchange cryptocurrencies

A cryptocurrency exchange licence allows companies to legally exchange cryptocurrencies for fiat currencies and vice versa, as well as provide services for exchanging one cryptocurrency for another. This type of licence is ideal for cryptocurrency exchange operators seeking to offer their customers convenient and secure ways to convert assets.

2. Licence to conduct an ICO/STO

The Initial Coin Offering (ICO) or Tokenised Securities (STO) licence provides a legal framework for companies wishing to raise finance by issuing and selling digital tokens. This licence requires applicants to develop a detailed business plan and investment memorandum, as well as comply with disclosure and investor protection requirements.

3. Licence for custodial services

This type of licence allows companies to provide custodial services for cryptocurrency assets on behalf of clients. Custodial services include providing secure storage of digital assets, managing access keys and providing various related services. Companies receiving this licence must demonstrate a high level of security and reliability of their storage systems.

4. Licence for cryptocurrency payment systems

This type of licence allows businesses to integrate cryptocurrency payments into traditional and digital payment systems. It is designed for payment providers and businesses seeking to offer their customers payment for goods and services using cryptocurrencies, thus expanding the available payment methods.

Process for obtaining a licence

The process of obtaining a cryptocurrency licence in Georgia involves preparing and submitting an application to the relevant regulatory authority, providing documents to prove compliance with the business requirements, and undergoing a verification procedure. A key aspect of successfully obtaining a licence is demonstrating transparent business operations, complying with regulatory requirements and ensuring a high level of security and data protection.

Conclusion

Georgia offers unique opportunities for cryptocurrency businesses due to its favourable regulatory climate and the variety of licences available. Understanding the specifics of each type of licence and the requirements for obtaining them is key to successfully launching and developing cryptocurrency activities in this jurisdiction. Investing time and resources in the licensing process opens the door for entrepreneurs and investors to an innovative and dynamic digital asset market.

 Steps to start a crypto business in Georgia

Georgia attracts the attention of entrepreneurs from all over the world with its favourable conditions for the development of cryptocurrency business. This country not only offers a simple business registration procedure and favourable tax policy, but is also a place with a high level of acceptance of cryptocurrencies and blockchain technologies.

1. Market research and business plan development

The first and perhaps most important step is in-depth market research and the development of a comprehensive business plan. This includes analysing the needs of the target audience, assessing competition, identifying potential risks and opportunities, and developing a monetisation strategy. The business plan should also clearly outline the company’s goals and how to achieve them.

2. Choice of legal form and company registration

Choosing the right legal form of business is critical to future success. In Georgia, entrepreneurs can choose between sole proprietorship, limited liability company (LLC), joint stock company and other forms. The process of company registration in Georgia is relatively simple and can be completed in a short period of time through the National Agency for State Registration.

3. Obtaining a cryptocurrency licence

Depending on the type of cryptocurrency activity your business plans to engage in, you may need to obtain the appropriate licence. This may include licences for cryptocurrency exchanges, ICO/STOs, custodial services or other activities. To obtain a licence, you will need to apply for one and provide the required documents to the regulatory authorities.

4. Development and implementation of infrastructure

An efficient and secure infrastructure is key to running a successful cryptocurrency business. This includes building a reliable IT infrastructure, selecting appropriate technology solutions to support cryptocurrency transactions, developing platforms and applications, and implementing security systems to protect customer data and assets.

5. Compliance with regulatory requirements

It is important to ensure full compliance with all regulatory requirements, including anti-money laundering (AML) and Know Your Customer (KYC) requirements. Regular updates to internal policies and procedures, as well as staff training, will help to maintain a high level of compliance and prevent legal risks.

6. Marketing and expansion of the client base

Developing and implementing an effective marketing strategy is essential to attracting customers and strengthening your market position. This may include online marketing, participation in industry events, co-operation with partners and developing a unique selling proposition (USP).

Conclusion

Launching a cryptocurrency business in Georgia is an encouraging prospect due to the favourable regulatory environment and support for innovation from the government. By following the steps outlined above and maintaining a focus on quality and security, entrepreneurs can successfully realise their business ideas and contribute to the development of the cryptocurrency industry in Georgia.

 Procedures for obtaining crypto licence in Georgia

Georgia has been prominent on the map of the global cryptocurrency industry in recent years due to its favourable regulatory climate and support for innovation in digital finance. For entrepreneurs and investors seeking to launch a cryptocurrency business in this country, it is important to understand the procedures and requirements for obtaining the relevant licence. In this article, we provide a detailed overview of the process of obtaining a cryptocurrency licence in Georgia, highlighting the key steps and recommendations.

1. Determining the type of licence

The first step is to determine the type of cryptocurrency licence that is appropriate for your type of activity. In Georgia, there are different categories of licences for exchange operations, custodial services, ICO/STO and other cryptocurrency activities. Understanding the specifics of each type of licence will allow you to formulate your business plan more accurately and avoid unnecessary time and resources at the application stage.

2. Registration of a legal entity

To apply for a cryptocurrency licence, it is necessary to have a registered legal entity in Georgia. Choosing the right legal form of business is a key aspect affecting the taxation, management structure and liabilities of the company. The registration process involves submitting the relevant documents to the National Agency for State Registration and may require the assistance of legal advisors.

3. Preparation and submission of documents

Applying for a cryptocurrency licence requires careful preparation of a package of documents that includes a business plan, evidence of compliance with AML/KYC requirements, information on the beneficial owners and directors of the company, and policies and procedures related to the proposed activity. It is important to ensure that the information provided is complete and up-to-date to minimise the likelihood of the application being rejected.

4. Passing an inspection and obtaining a licence

Once an application is submitted, regulators conduct a review process to assess the company’s compliance. This process may include an audit of internal systems and policies, interviews with key employees and additional review of documentation. If the company successfully passes the inspection, it receives a cryptocurrency licence, which certifies the right to conduct relevant activities in Georgia.

5. Compliance with continuing regulatory obligations

Obtaining a licence does not mean the end of interaction with regulatory authorities. Companies are obliged to comply with regulatory requirements throughout the entire period of operations, including regular reporting, keeping AML/KYC systems up to date and informing regulators of significant changes in operational activities.

Conclusion

Obtaining a cryptocurrency licence in Georgia is a complex process that requires careful planning and preparation. By following the steps outlined above and ensuring compliance with regulatory requirements, entrepreneurs can successfully launch and grow their cryptocurrency business in one of the most innovation-friendly jurisdictions. Despite the challenges associated with licensing, the benefits of access to a growing market for digital assets and government support make this process an important investment decision for the future of your business.

 How to get a crypto trading licence in Georgia

Georgia, thanks to its innovative and cryptocurrency-friendly regulatory policy, represents a promising platform for entrepreneurs seeking to tap into the global market for digital assets. Obtaining a cryptocurrency trading licence is a key step to launch a legal and successful business in this jurisdiction.

1. Defining the business model

The first step is to clearly define your business model and understand what type of cryptocurrency trading activity you plan to undertake. Depending on the operations, such as cryptocurrency exchanges, brokerage services, ICOs or custodial services, different licences may be required.

2. Registration of a legal entity

To obtain a cryptocurrency licence, you need to have a registered legal entity in Georgia. You can choose the most suitable form of business organisation, such as LLC (limited liability company) or JSC (joint stock company). Company registration includes submitting the relevant documents and information to the National State Registration Agency of Georgia.

3. Preparing for licensing

Preparation for licensing includes the development and documentation of all necessary internal policies and procedures that comply with the requirements of Georgian legislation. Particular attention should be paid to the development of AML (anti-money laundering) and KYC (know-your-customer principle) policies, which are mandatory for all cryptocurrency transactions.

4. Submitting an application for a licence

After registering a company and preparing the necessary documentation, the next step is to apply for a cryptocurrency trading licence. The application is submitted to the relevant regulatory authority together with a full package of documents, including proof of compliance with AML and KYC policies, as well as a detailed description of the business model and services provided.

5. Waiting for a decision and obtaining a licence

Once the application and all required documents have been submitted, the regulator begins the application review process. This stage may include additional requests for information, checks and possibly an audit of the company. In case of a positive decision, the company receives a licence for cryptocurrency trading, officially authorising the relevant activities in Georgia.

6. Maintaining compliance with requirements

Obtaining a licence is not the final stage. In order to maintain the licence and avoid legal violations, it is important to maintain compliance with regulatory requirements, update AML/KYC policies and submit regular reports to the regulatory authorities.

Conclusion

The process of obtaining a cryptocurrency trading licence in Georgia requires careful preparation, attention to detail and strict compliance with regulatory requirements. With the right approach and comprehensive preparation, this process can be successfully implemented, opening doors to opportunities in the dynamic world of cryptocurrencies. Entrepreneurs armed with the knowledge and resources to navigate this process can significantly increase their chances of success in the Georgian digital asset market.

 Taxation of virtual currency companies in Georgia

Georgia is attracting global investment in the virtual currencies sector due to its favourable tax regime and progressive approach to regulating digital assets. Efficient taxation plays a key role in ensuring the sustainable development of virtual currency companies and maintaining international competitiveness

1. General overview of taxation in Georgia

Georgia offers one of the most attractive tax systems in the region, characterised by low corporate tax rates and favourable conditions for investors. For companies dealing with virtual currencies, this provides an opportunity to optimise tax liabilities while complying with all regulatory requirements.

2. Taxation of virtual currencies

In Georgia, operations with virtual currencies such as cryptocurrencies are not subject to value added tax (VAT), which makes the country attractive for cryptocurrency traders and investors. However, income derived from activities related to virtual currencies is subject to taxation depending on the legal status of the company and the nature of the income.

3. Corporate income tax

Companies registered in Georgia and conducting operations with virtual currencies are subject to income tax at the rate of 15%. It is important to note that Georgia applies a system of taxation of distributed profits, which means that only the part of profits distributed as dividends is taxed. This provides companies with an opportunity to reinvest undistributed profits without additional tax liabilities.

4. Personal taxation

Individuals who receive income from transactions with virtual currencies are also subject to taxation under Georgian tax legislation. Personal income tax is 20 per cent and each individual entrepreneur or private investor must declare their income and pay taxes independently.

5. Tax optimisation strategies

To maximise tax efficiency, companies dealing with virtual currencies in Georgia may consider the following strategies:

• Careful planning of profit and dividend distributions to minimise tax liabilities.
• Utilising tax exemptions and incentives provided by Georgian legislation to support innovation and investment.
• Maintain accurate records and documentation of all virtual currency transactions to ensure transparency and regulatory compliance.

Conclusion

Georgia provides a favourable environment for virtual currency business development by offering an attractive tax system and supporting innovation. By understanding taxation and applying effective tax optimisation strategies, companies can maximise their profits and contribute to sustainable development in the dynamically changing digital economy. Entrepreneurs who are attentive to tax planning and compliance can successfully develop their business in Georgia, using the country as a strategic platform to access the global market for virtual currencies.

Tax rates in Georgia

Georgia’s tax system offers an attractive environment for local and foreign entrepreneurs due to its simplicity and relatively low tax rates. Here is an overview of the main tax rates for companies in Georgia:

Key peculiarities of taxation in Georgia:

• Income tax (corporate tax): Introduced a taxation system whereby tax is paid only when profits are distributed (reinvested profits are not taxed).
• Dividend Tax: The dividend tax rate is 5%, which makes Georgia attractive for investors.
• Value Added Tax (VAT): The standard VAT rate is 18%, but certain types of goods and services may be exempt from VAT or taxed at a reduced rate.
• Social tax: The social tax rate paid by the employer is 2% of the employee’s salary.
• Property Tax: Property tax rates can vary depending on location and type of property, but are generally relatively low.

Georgia offers a number of tax breaks and incentives to support business and investment, including special economic zones with favourable taxation for certain types of activities and investment incentives for large projects. These measures, combined with a simple and transparent tax system, make Georgia one of the most attractive countries for doing business in the region.

Crypto tax in Georgia

In the context of the global economic landscape, Georgia stands out as one of the most attractive jurisdictions for cryptocurrency businesses due to its innovative tax policies and openness to digital assets. Understanding the specifics of cryptocurrency taxation in Georgia is crucial for entrepreneurs and investors seeking to optimise their tax liabilities and ensure compliance with local legislation.

1. Taxation of transactions with cryptocurrencies

Georgia offers a unique tax environment for cryptocurrency transactions based on the principles of simplicity and efficiency. Cryptocurrency transactions, including buying, selling and exchanging, are currently not subject to value added tax (VAT), making Georgia an attractive destination for cryptocurrency trading and investment. However, income derived from cryptocurrency-related activities is subject to general tax rules.

2. Income tax

For legal entities engaged in cryptocurrency activities in Georgia, profit tax is applied at the standard rate of 15%. A peculiarity of the Georgian tax system is the application of tax on distributed profits, which means that only the part of profit that is actually paid out as dividends is taxed. This provides companies with an opportunity for tax optimisation through reinvestment of profits.

3. Personal income tax

Individuals receiving income from cryptocurrency investments are liable to pay income tax at the rate of 20%. It is the responsibility of each taxpayer to include income from cryptocurrencies in the tax return and pay the relevant taxes. It is important to note that when a cryptocurrency is sold for the purpose of exchanging it for another cryptocurrency, a tax liability arises only if the gain is realised.

4. Tax optimisation strategies

Effective tax planning and strategic optimisation can help entrepreneurs and investors minimise tax liabilities and maximise returns from cryptocurrency activities. Key strategies may include taking advantage of tax incentives available for innovative projects and carefully managing the timing of cryptocurrency assets to optimise the tax burden.

5. Conclusion and recommendations

Georgia provides an attractive environment for cryptocurrency business development due to its innovative tax policy. To achieve the best results in tax planning, entrepreneurs and investors are advised to seek advice from qualified tax professionals who are able to provide up-to-date information and customised solutions to meet specific business needs.

Embracing the Future: Securing a Crypto Exchange License in Georgia 2024

Georgia is rapidly becoming recognized as a significant player in the global cryptocurrency landscape, known for its liberal regulatory approaches and a business-friendly environment. This guide delves into the intricacies of acquiring a crypto exchange license in Georgia, offering insights into the regulatory framework, application process, and the advantages of obtaining a license in this jurisdiction.

Regulatory Framework for Crypto Exchanges in Georgia

Georgia’s approach to crypto regulation is characterized by its openness to innovation and minimal regulatory hurdles, managed under the guidance of the National Bank of Georgia and other relevant authorities. The country provides a welcoming environment for crypto businesses, aiming to attract more fintech innovation and investment.

Types of Crypto Licenses Offered in Georgia

The Georgian market offers several types of crypto licenses to cater to various business needs:

• Crypto exchange license in Georgia: Allows the operation of crypto-to-fiat and crypto-to-crypto exchanges.
• Crypto broker license in Georgia: Enables entities to facilitate buying and selling on behalf of clients.
• Crypto trading license in Georgia: Specific to entities engaging directly in the buying and selling of digital assets.
• VASP crypto license in Georgia: For providers offering a broader range of services related to virtual assets.

Application Process for a Crypto License in Georgia

Securing a crypto license in Georgia involves a streamlined application process. Prospective licensees must demonstrate compliance with local AML/CFT regulations, have robust operational infrastructure, and provide detailed business plans and financial projections.

Cost Implications of Obtaining a Crypto License

The crypto exchange license in Georgia cost is comparatively lower than in many other jurisdictions, making it one of the cheapest crypto licenses in Georgia and an attractive option for startups and established enterprises looking to expand their operations with minimal financial outlay.

Advantages of Obtaining a Crypto License in Georgia

Holding a licensed status in Georgia provides significant competitive advantages, including access to a growing local market and the broader EU and Eurasian economic areas, enhanced business credibility, and compliance with international financial regulations.

Challenges and Solutions

While the process is facilitated by a business-friendly government, companies must navigate through some bureaucratic challenges and ensure full compliance with evolving regulations. Successful navigation involves keeping abreast of legislative changes and adapting business operations accordingly.

Market Opportunities in Georgia

Georgia offers a dynamic market with considerable growth potential. The economic incentives, coupled with a low-cost operational environment, provide fertile ground for crypto businesses looking to innovate and scale.

Buying and Selling Crypto Licenses

Occasionally, opportunities to purchase an existing crypto exchange license in Georgia for sale may arise. This can expedite market entry but requires careful due diligence to ensure the license meets all current regulatory and operational standards.

Conclusion: As the cryptocurrency sector evolves, Georgia presents a compelling case for businesses looking to enter or expand within the crypto space. Obtaining a crypto exchange license in Georgia not only ensures regulatory compliance but also positions businesses to capitalize on extensive opportunities in an emerging market that is supportive of technological advancement and innovation.