Why Georgia is becoming an attractive jurisdiction for crypto business

Georgia is confidently gaining a foothold in the list of countries favorable for the development of the crypto industry. A unique geographical location, the presence of free economic zones and progressive steps towards regulating virtual assets make this country a center of attraction for entrepreneurs seeking to launch projects in the field of digital finance.

Regulation of cryptocurrency activities: VASP license in Georgia

In Georgia, the National Bank of the country exercises control over cryptocurrency activities. Organizations working with digital assets are required to undergo licensing and obtain the status of a virtual asset service provider - Virtual Asset Service Provider (VASP).

Such a license is required for companies providing the following services:

• exchange of cryptocurrencies for fiat money and other digital assets;
• storage and management of clients' cryptocurrencies;
• activities for managing digital asset portfolios;
• administration of cryptocurrency trading platforms;
• conducting initial coin offerings (ICO) and related processes.

Steps to Obtaining a Crypto License in Georgia

1. Registering a Legal Entity

The first step towards licensing is opening a company. In Georgia, this can be a limited liability company (LLC) or a joint-stock company. It is especially advantageous to open cryptocurrency firms in one of the free economic zones - in Tbilisi, Kutaisi or Poti. These zones offer favorable tax conditions and a flexible administrative environment.

2. Submitting an Application to the National Bank

An application for a VASP license is submitted to the country's main financial regulator - the National Bank of Georgia. A number of documents must be attached to it:

a detailed business plan with a financial forecast for three years; information on the implementation of anti-money laundering (AML) and counter-terrorism financing (TF) procedures; a list of cryptocurrency services that the company plans to provide; documents confirming the qualifications and experience of the company's administrators; information on the beneficiaries and business owners; technical data on web resources and mobile applications used to provide services; documents confirming the presence or rent of an office in Georgia.

The National Bank has the right to request additional documents. On average, the application review procedure takes about two months.

Advantages of a Georgian crypto license

• Transparent and predictable regulation: Georgian legislation is evolving with the times, striving to create a favorable environment for fintech companies.
• Attractive tax conditions: Free economic zones provide tax incentives, which allows companies to efficiently allocate resources.
• High level of trust from international partners: A license from the National Bank of Georgia strengthens the company's reputation on the global stage.

Obtaining a VASP license is a process that requires attention to the requirements of the regulator and detailed preparation of documentation. IT-OFFSHORE offers full support in obtaining a crypto license in Georgia: from registering a legal entity to submitting an application to the National Bank and obtaining approval.

IT-OFFSHORE lawyers and consultants have many years of experience in international corporate law and crypto regulation. With their help, you can not only speed up the licensing process, but also avoid possible errors associated with bureaucratic nuances.