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.
Crypto License in Georgia
PACKAGE «COMPANY & CRYPTO License IN GEORGIA»
- Establishment or purchase of a ready-made company
- Preparation of legal company documents
- Assistance in director employment
- Lease of legal address for one year / Assistance in finding a local office
- Review of the business model and the structure of the Cryptocurrency Company
- Assistance in opening a bank account for cryptocurrency companies
- Procedural Rules and KYC/AML Company Procedures
- Preparation of notifications, forms and supporting documents for submission to National Bank of Georgia
- Paying company registration state fees
- Paying government crypto license state fees
- General counselling (5 hours)
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:
- 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
- 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:
- Establish a limited liability company (LLC) or a joint stock company (JSC), allowing ownership by individuals from any country.
- Furnish the regulator with comprehensive information about each owner of the company, including those residing outside the country.
- Validate the absence of any criminal records for both directors and beneficiaries.
- Affirm the enterprise’s satisfactory solvency level for providing exchange services and safeguarding crypto assets.
- Employ at least one local director for the company.
- Execute a lease agreement for a local private office.
- Remit the state fee for the license application, amounting to 5,000 GEL (approximately 2,000 USD).
- Submit the regulator with Anti-Money Laundering/Know Your Customer (AML/KYC) Policies.
- 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.
- 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.
- 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
Fast company registration and licensing process
Low Business Costs and Taxes
No minimum capital requirement
Starting a crypto business in Georgia presents several advantages that contribute to the appeal of the country for entrepreneurs in the cryptocurrency sector:
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
FREQUENTLY ASKED QUESTIONS
To establish a crypto business in Georgia, you'd start by forming an LLC or JSC, allowing ownership by individuals worldwide. Furnish the regulator with comprehensive information about each owner, validate the absence of criminal records, and confirm solvency. Further steps include hiring a local director, leasing a local office, remitting a 5,000 GEL state fee, and submitting AML/KYC policies. Founders must provide a realistic business plan, service list, and hacker attack protection details. Post-license acquisition, maintaining compliance through audits and accurate accounting records is crucial for lawful cryptocurrency operations.
In the initial phase of establishing a crypto business in Georgia, the focus lies on the meticulous preparation of essential documentation. This involves determining the shareholding structure, collecting passport copies of future shareholders, Ultimate Beneficial Owners (UBOs), and directors, as well as providing proof of residential addresses for all participants through utility bills or bank statements. Additionally, a comprehensive description of the planned activities or project and the submission of CVs outlining the background of each participant are vital components of this preparatory stage.
Following the documentation phase, the subsequent step involves the licensing application process. This includes conducting a company name check and verification, preparing the necessary legal documents, identifying a local office space in Georgia, and compiling all relevant license application documents for submission to the National Bank of Georgia. Simultaneously, the process entails initiating the corporate account opening procedure to facilitate the subsequent operational aspects of the crypto business. This sequential progression ensures a systematic and comprehensive approach to navigating the regulatory landscape and successfully establishing a cryptocurrency venture in Georgia.
As companies navigate the licensing journey in Georgia, a carefully structured timeline aims to ensure efficiency, transparency, and regulatory oversight while minimizing delays. Georgia's proactive approach in implementing a well-defined licensing procedure for VASPs reflects its commitment to cultivating a secure and regulated cryptocurrency environment. Adherence to the established timeline is crucial for companies aspiring to operate as VASPs, not only as a legal obligation but also as a strategic imperative in gaining a foothold in the growing cryptocurrency market. The National Bank, overseeing the process, commits to deciding on license acquisition within two months, but this timeframe may adjust based on additional documentation requirements, making the entire process dynamic and collaborative. Adhering to this timeline enables companies to navigate the regulatory landscape confidently and foster a secure and compliant environment for their cryptocurrency operations in Georgia.
Yes, our experts and banking specialists at Regulated United Europe would be glad to assist you in the process of opening a corporate account for your business.
Georgia’s tax system is designed to be business-friendly, aiming to attract foreign investments and stimulate economic growth. The simplicity of the tax code contributes to a streamlined process for businesses to comply with their tax obligations. Companies are required to file annual tax returns, and the tax year typically corresponds to the calendar year.
- Value Added Tax (VAT): 18%
- Dividend Tax: 5%
- Social Tax: 20%
- Corporate Income Tax: 15%
RUE customer support team
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At the moment, the main services of our company are legal and compliance solutions for FinTech projects. Our offices are located in Vilnius, Prague, and Warsaw. The legal team can assist with legal analysis, project structuring, and legal regulation.