In recent years, Georgia has become a true magnet for entrepreneurs seeking to use cryptocurrency tools for various business tasks. The state has created a transparent licensing and taxation system, paying special attention to security and anti-money laundering measures. Let's examine in detail the legal framework and key areas of cryptocurrency application in business.

Legal Framework Basics

Cryptocurrency Operations Licensing

Since 2023, the situation in Georgia's crypto sphere has become even more organized - mandatory licensing has been introduced for companies working with cryptocurrencies (online exchanges, services for buying and selling coins). The National Bank of Georgia issues VASP licenses, and each licensed operator must comply with strict requirements for protecting user rights and ensuring complete transparency of all transactions.

Taxation

Georgia has a flexible taxation system for cryptocurrency operations:

• Individuals are completely exempt from profit tax when trading cryptocurrencies

• Companies pay standard 15% profit tax and 5% on dividends

• Small businesses (SBS) enjoy an attractive preferential rate of just 1% of profits

When organizing mining and cryptocurrency exchange on an industrial scale, it's important to consider commercial electricity tariffs. However, placement in special industrial zones (SIZ) provides access to significant tax benefits.

KYC/AML

As part of anti-money laundering (AML) and know-your-customer (KYC) measures, each licensed enterprise must request documents confirming the client's identity. If you encounter an exchange that doesn't require verification, it's a clear sign that it's likely operating outside the law.

Ways to Use Cryptocurrency in Business

Salary Payments

Cryptocurrency salaries are gaining popularity due to several advantages:

• Significantly lower commissions compared to traditional transfers

• Considerable simplification of payments to employees worldwide

• Increased loyalty from job seekers oriented towards digital assets

It's important to consider certain features: volatility should be taken into account (although stablecoins partially solve this problem) and such payments must be properly reflected in accounting documentation.

Capital Investment

Diversification through cryptocurrency can be an effective solution, especially considering the growth potential of major crypto assets (BTC, ETH, and others). However, it's necessary to carefully assess risks associated with sharp exchange rate fluctuations and ensure secure asset storage.

Key approaches include:

• Purchasing major cryptocurrencies from verified crypto exchanges operating officially

• Storing funds in reliable cold wallets

• Developing an optimal investment strategy considering market risks

Direct Operations (Exchanges, Mining)

For exchanges, the key requirements remain obtaining an official license, strict compliance with KYC/AML standards, and ensuring transparent reporting. Both online platforms and traditional offline points in major cities operate successfully in the market.

Georgia has established itself as a particularly attractive region for mining thanks to a combination of relatively low electricity costs and suitable climatic conditions. It's noteworthy that over 198 million kWh was consumed for mining in the first 9 months of 2024 - this clearly demonstrates the market's active development. When operating in free industrial zones, companies gain access to substantial tax benefits, although potential power grid overloads in mountainous areas and special requirements for commercial tariffs should be considered.

Practical Recommendations

Before starting work with cryptocurrencies in Georgia, it's important to:

• Obtain qualified legal consultation: clarify local requirements, tax obligations, and registration possibilities (for example, in SIZ) in detail

• Thoroughly verify service licenses: choose only those exchanges and payment platforms that have an official VASP license from the National Bank of Georgia

• Set up accounting: implement specialized solutions for cryptocurrency payment automation and correct recording of all transactions

When choosing between SWIFT and cryptocurrency transfers, consider:

• SWIFT provides traditional "officiality" but is often associated with excessive bureaucracy and may depend on sanctions

• Cryptocurrency works noticeably faster, isn't tied to rigid limits, and usually offers more favorable commissions

AllTrust.Me Crypto Exchange: Licensed Business Partner

AllTrust.Me crypto exchange, operating under a state VASP license, has accumulated significant experience in cooperation with international business. We help companies effectively integrate cryptocurrency technologies into their business processes, ensuring full compliance with legislative requirements. Our offices in central Tbilisi and Batumi are always open - qualified specialists will provide detailed consultation and help choose the optimal solution for your specific needs.

Conclusion

The Georgian government consistently creates favorable conditions for crypto industry development: this is reflected in continuous improvement of legislation, active support for promising startups, and clear, understandable taxation rules. Entrepreneurs can use cryptocurrencies for various purposes - from organizing salary payments to implementing large investment projects and developing their own mining operations.

With a reasonable approach and careful compliance with local requirements, cryptocurrency solutions truly help optimize expenses, significantly speed up international settlements, and notably increase overall business efficiency.