Until 2023, cryptocurrency in Georgia was considered a controlled but unregulated sphere. However, on January 1, 2023, the government published a new draft law that establishes regulatory rules for cryptocurrency companies, the Law on Virtual Asset Service Provider (VASP) Registration Procedure, which came into force on July 1, 2023. Following the adoption of the new legislation, obtaining a cryptocurrency license from the National Bank of Georgia is mandatory for any business engaged in cryptocurrency activities.
The applicant must meet several requirements to obtain a crypto license in Georgia. Firstly, the applicant must be a legal entity registered in Georgia. To engage in cryptocurrency exchange operations, companies are required to demonstrate at least 1 local director and local office. Furthermore, it is mandatory for applicants to have a spotless criminal history and demonstrate a proven history of financial responsibility.
Upon application submission, the National Bank of Georgia shall carefully evaluate and investigate the candidate in question, ensuring due diligence in the process. Should the application be deemed satisfactory, the candidate will be granted a license to run a crypto enterprise.
Entities are obligated to adhere to anti-money laundering (AML) and counter-terrorism financing (CTF) rules. Crypto businesses must implement AML/CTF policies and procedures, conduct customer due diligence, and report suspicious transactions to the Financial Monitoring Service of Georgia.