Cryptocurrency license in Georgia: how to get in 2023
Georgia is one of the most crypto-friendly countries in the world. Thanks to cheap electricity, mining is flourishing and crypto-ATMs are operating. As a result, Georgian people make up to 5 million GEL ($1.6 million) in monthly crypto transactions. Moreover, taxes for working with digital assets are low, the laws are liberal, and getting a cryptocurrency license in Georgia in 2023 is not difficult if you meet all the regulator's conditions.
Cryptocurrency business in Georgia: things you should know
Georgian crypto business is not strictly regulated, but the National Bank has already paid attention to this and plans to deal with it. Now a law is being developed, which will describe in detail:
- rules for registration of virtual asset providers;
- check procedures for compliance with AML rules, which prevent fraud and money laundering.
While the draft is being developed, the National Bank is preparing the ground for its implementation. For example, it has banned banks from providing digital asset exchange services (one can do it through exchangers). In addition, the government treats cryptocurrency companies as high-risk financial institutions. Therefore, they must obtain a license and are under increased control.
As for taxes, the Ministry of Finance of Georgia clarified this issue back in 2019:
- Individuals are exempt from income tax on any profits made from the sale of digital assets. Also, trading or exchanging cryptocurrency for lari or other real money, is not subject to VAT (18%).
- Trading in computing power in Georgia and abroad is not subject to VAT for individuals.
A cryptocurrency company would pay corporate fees on profits, even if they make it in another country. In other words, if a Georgian cryptocurrency company profits from transactions, it has to pay a tax of 15% for each transfer. But no income tax is paid if the cryptocompany doesn't pay dividends but sends the earned money for its development.
Cryptolicense in Georgia
Although the cryptocurrency business in Georgia is poorly regulated, any financial company must take a license from the National Bank. Companies that work with digital currency can issue coins for sale, engage in exchange, invest customers' money in cryptocurrency, and perform other operations. The local cryptolicense is valid only in Georgia.
How to get a cryptolicense
Before obtaining a cryptolicense in Georgia 2023, it is necessary to start an LLC or a JSC, and its owners can be citizens of any country. However, if you want save on taxes, it is better to register the company in FEZ (free economic zone) in Kutaisi or Tbilisi. Then you need to open an account in a Georgian bank, putting the authorized capital of 250,000 lari on it.
Then you have to apply to the National Bank, providing the following data:
- Information about all the founders and shareholders. They must have a clean record, no criminal record, and no accusations of fraud, bankruptcy, etc.
- Information about the amount of the authorized capital.
- Business plan with a list of cryptocurrency and methods of protection against hacking and fraud.
- Lease or purchase agreement, which will confirm the availability of the office.
Subsequently, the cryptocompany must notify the National Bank of a change of ownership, suspension of work, liquidation of the business, and other significant changes. It's necessary to renew the cryptolicense once a year.
Term of application review
The regulator reviews the cryptolicense application for about a month. Then, after carefully checking the documents, they may ask for additional papers.
How to get a Georgian cryptolicense
Contact IT-OFFSHORE experts to become the owner of a cryptocurrency license in Georgia as fast as possible.