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Get a cryptolicense in Georgia in 2023

Cryptocurrency license in Georgia: how to get in 2023

28. 12. 2022
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Georgia is one of the most loyal countries in the world to cryptocurrency. Thanks to the low price of electricity, mining is flourishing here, and crypto-machines are operating. In the country's cryptocurrency markets, transactions of up to 5 million GEL ($1.6 million) are made every month. Taxes for working with digital assets are low, laws are liberal, and getting a cryptocurrency license in Georgia in 2023 is not difficult if you meet all the conditions of the regulator.

Cryptocurrency business in Georgia: what you should know

Georgian crypto business is not particularly regulated, but the National Bank has already paid attention to this problem 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 already banned banks from providing services for exchange of digital assets (it can be done through exchangers). Cryptocurrency companies are seen as financial institutions with a high degree of risk. They must obtain a license and are under increased control.

Taxes

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. However, trading or exchanging cryptocurrency for lari or other real money, is not subject to VAT (18%).
  • Trading in computing power both in Georgia and abroad is not subject to VAT for individuals.

A cryptocurrency company pays corporate fees on profits, even if they were made 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 if the cryptocompany doesn't pay dividends, but sends the earned money for its own development, no income tax is paid.

Cryptolicense in Georgia

Although cryptocurrency business in Georgia is poorly regulated, any financial company must take a license from the National Bank. Companies that work with digital currency, it allows them to issue coins for sale, to engage in exchange, to invest customers' money in cryptocurrency, to perform other operations. Cryptolicense is valid only in Georgia.

How to get a cryptolicense

Before obtaining a cryptolicense in Georgia 2023, it is necessary to register LLC or JSC, the owners of which can be citizens of any country. To save on taxes, it is better to register it 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 submit an application to the National Bank, providing the following data:

  • Information about all the founders, shareholders. They must have a clean record, no criminal record, no accusations of fraud, bankruptcy, etc.
  • Information about the amount of the authorized capital.
  • Business plan with a list of cryptocurrency services, methods and schemes 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 major changes. The cryptolicense must be renewed once a year.

Term of application review

The regulator reviews the cryptolicense application for about a month. They carefully check the documents and may ask for additional papers, which must be provided.

How to get a Georgian cryptolicense

To become the owner of a cryptocurrency license in Georgia as fast as possible, contact IT-OFFSHORE experts.

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