Georgia Crypto Banking Rules: Licensing, Tax & Compliance Overview

Ever wondered why a handful of crypto startups are pulling out of Georgia while others are setting up shop? The answer lies in a tightly woven set of banking restrictions that dictate who can move digital money and how they must stay on the right side of the law.

What the rules actually say

Georgia is a Eurasian country that, in the past few years, has positioned itself as a crypto‑friendly destination while still demanding strict compliance from financial players.

The National Bank of Georgia (NBG) acts as the chief regulator for all crypto‑related activities. Since July12023, the NBG has enforced the Virtual Asset Service Provider (VASP) registration law a licensing regime that applies to every entity offering crypto services. Miss the paperwork and you’ll quickly find yourself on a cease‑and‑desist list.

Who needs a license?

Under O.C.G.A. §7‑1‑681(b), any person who transmits money or monetary value-including cryptocurrency a digital asset that can be transferred without a traditional bank-must hold a money transmitter license a state‑granted authorization to move funds on behalf of others or fall under a narrow exemption (O.C.G.A. §7‑1‑682).

The Georgia Department of Banking and Finance the enforcement arm that monitors compliance, issues licenses, and pursues violations has issued several high‑profile orders in 2025. On January16, 2025, both Bullet Blockchain, Inc. and RocketBTM (Blockchain Technology Machines, Inc.) were shut down for operating Bitcoin ATMs without the required license.

Licensing checklist - what you need to prepare

Tax landscape - sweet deals and hard lines

Georgia’s tax code is a mix of incentives and realities. Individuals enjoy a 0% tax on crypto transactions, which is a big draw for traders and everyday users. Companies, however, pay a 15% corporate tax on distributed profits. The policy aims to keep the ecosystem vibrant while still feeding the national treasury.

Current figures (2025) show the government holding 66BTC (about$6.86million) and projecting a 14.13% adoption rate - roughly 153,000 users - worth $1.9million in market revenue. Those numbers illustrate how the tax structure fuels growth without creating a fiscal vacuum.

Compliance in practice - AML/CFT is non‑negotiable

The Financial Monitoring Service (FMS) Georgia’s unit that reviews suspicious‑activity reports and enforces AML/CFT rules works hand‑in‑hand with the NBG. Every licensed VASP must embed KYC checks at onboarding, run continuous transaction screening, and submit SARs (Suspicious Activity Reports) within 24hours of detection.

Failure to comply can trigger immediate revocation of the license, hefty fines, or even criminal prosecution. The 2025 cease‑and‑desist orders demonstrated that the Department will not hesitate to act.

International alignment - why the IMF matters

In March2024, the International Monetary Fund (IMF) praised Georgia’s AML/CFT upgrades, noting they match global standards. This endorsement not only reassures foreign investors but also paves the way for future cross‑border digital‑asset projects.

Looking ahead, Georgia plans to fully embed digital assets into its AML/CFT framework by 2026. The roadmap includes tighter reporting thresholds, expanded cooperation with foreign regulators, and a sandbox for emerging tokenized services.

Practical steps for businesses eyeing Georgia

1. **Assess whether you fall under an exemption** - If you only host a non‑transfer wallet, you may avoid the money‑transmitter license.

• Check O.C.G.A. §7‑1‑682 details.

2. **Compile the licensing dossier** - Gather shareholder IDs, financial statements, AML policy drafts, and a recent security audit.

3. **Submit to the Georgia Department of Banking and Finance** - Expect a 60‑day review period; be ready to answer follow‑up questions from Rod Carnes, Deputy Commissioner for Non‑Depository Financial Institutions.

4. **Build a compliant KYC/KYB workflow** - Use reputable identity‑verification providers and integrate real‑time transaction monitoring.

5. **Plan for ongoing reporting** - Set up automated SAR generation and keep audit logs for at least five years.

Following this checklist dramatically reduces the risk of being the next bullet‑point on a cease‑and‑desist list.

Common pitfalls and how to dodge them

Missing the capital requirement - Many start‑ups think a small cash reserve is enough. The law is blunt: you need the full 250,000GEL unless you qualify for a kiosk exemption.

Weak AML policies - A generic “we’ll follow the law” statement won’t cut it. The FMS expects documented procedures, employee training logs, and a clear escalation path.

Assuming crypto is legal tender - Georgia treats crypto as a tradable asset, not a currency. This nuance matters when drafting contracts and pricing models.

Future outlook - what’s next after 2026?

Beyond the full AML/CFT integration, the NBG is scouting for ways to bring tokenized securities, stablecoins, and CBDC pilots under its umbrella. For businesses, this signals a need to stay agile: today’s compliant VASP might need to upgrade its tech stack in two years to handle centralized stablecoin reporting.

Meanwhile, the low‑cost energy environment continues to attract miners, and the 0% individual tax keeps retail participation high. Expect the adoption curve to steepen, especially as educational campaigns roll out across Tbilisi’s universities.