Cryptocurrency license in Georgia: how to get in 2022
Georgia has officially allowed cryptocurrency companies to exchange cryptocurrencies, sell tokens, store electronic money in virtual wallets, as well as debit and credit digital currency to their accounts. To be able to engage in such activities, one must obtain a cryptocurrency license in Georgia in 2022.
Laws of Georgia on cryptocurrency
It is profitable to work with cryptocurrency in Georgia due to these reasons:
- the crypto industry is actively developing;
- there are no restrictions on token trading;
- individuals may not pay income tax on any income that was received from the sale of tokens;
- exchange of digital money for real currency is not subject to VAT;
- sales of hashes (computing power) from Georgia to another country are not subject to VAT;
- low electricity prices, which makes it possible to engage in mining;
- there are no direct prohibitions on payments in cryptocurrency;
- Georgia is one of the top countries in terms of ease of doing business;
- there are crypto-machines in the country, which allow you to convert tokens into real money;
- Since 2017, there is a Georgian cryptocurrency exchange, where you can work with tokens.
Getting a cryptocurrency license: where to open a company
Before getting a cryptolicense in Georgia, you have to open a company. We recommend doing it on the territory of FEZ - a free economic zone, which provides preferential taxation and other attractive conditions.
There are 4 free economic zones in Georgia - two in Kutasi, one in Tbilisi, and one in Poti. Companies registered here do not pay corporate tax on profits, inheritance, and dividends; export operations are not subject to VAT. The founders may be foreigners.
Peculiarities of obtaining a cryptolicense
According to the law, all Georgian companies that operate in the field of electronic finance must obtain one of the licenses:
- to trust third-party money to invest in cryptocurrency;
- to issue their tokens for subsequent sale;
- to exchange electronic money in Georgia.
A cryptocurrency license in Georgia 2022 gives broad powers, including transferring money, making payments, debiting, and crediting funds. If you get an e-money exchange license, you can also work with fiat currency.
Organizations registered as LLCs or JSCs can obtain a license. If all the paperwork is submitted correctly, the license is issued without any problems. There are no requirements for the citizenship of the founder, the presence of a physical office (a legal office is required).
Requirements for a company that wants to get a crypto license
- The company must provide the regulator with information about all owners. They may not be citizens of Georgia, but necessarily without a criminal record;
- The organization must prove solvency if it is going to engage in currency exchange, storage of virtual money, etc;
- After the registration it is necessary to pass regular audits and keep accounting;
- The company, which is going to engage in the exchange and storage of electronic money, must inform the regulator about all major changes - liquidation, temporary suspension of activities, etc;
- The founders must show the regulator a business plan, a list of services they plan to provide, and describe methods of protection against hacker attacks.
Terms of obtaining a cryptocurrency license
The National Bank takes at least a month to consider the application for a cryptolicense. To quickly get a cryptolicense in Georgia 2022, it is necessary to properly draw up all the papers, competently compose a business plan, for which contact IT OFFSHORE. If the National Bank asks for additional papers, they must be presented, otherwise the registration will be denied.