Georgia actively attracts foreign investments by creating favorable conditions for businesses. The country has free economic zones that offer tax and other incentives to investors. Georgia offers a special license for Virtual Asset Service Providers (VASP). This license regulates the activities of crypto exchanges, custodial services, crypto exchangers, and other companies working with virtual assets.

Georgia has established new rules for the crypto industry, requiring companies working with digital assets to obtain a license from the National Bank of the country. The development of the regulatory framework was completed at the beginning of 2023, and the key provisions were approved on January 1.

From now on, all organizations wishing to operate with virtual currencies in the territory of Georgia must go through the licensing process in accordance with the new requirements. This will allow for streamlining the fast-growing crypto sector, ensuring the protection of market participants' interests, and integrating the industry into the state's legal field.

The main requirements for obtaining a VASP license in Georgia:

• Registration of a legal entity in Georgia.
• Minimum authorized capital of 100,000 GEL (approximately $32,000).
• Presence of a physical office in Georgia.
• Compliance with AML/CFT requirements (anti-money laundering and combating the financing of terrorism).
• Availability of qualified personnel, including a compliance director.
• Technical and IT infrastructure ensuring security.
• Clear rules and procedures for working with clients.

The license application is reviewed by the National Bank of Georgia. The process takes up to 90 days.

Taxation of an LLC (Limited Liability Company):

Profit Tax - 15% after profit distribution (if the profit is reinvested or remains in the company's account, the tax is 0%)

Dividend Tax - 5% after profit distribution (if the profit is reinvested or remains in the company's account, the tax is 0%)

VAT - 18% (if there is no income from a source in Georgia, the company is exempt from paying VAT)

How to obtain a cryptocurrency license in Georgia

In order to obtain a cryptocurrency license in Georgia, it is necessary to register a company and submit an application to the regulator. IT-OFFSHORE offers ready-made solutions for obtaining a license in Georgia.