Cryptocurrency legislation in Georgia has undergone significant changes in recent years. Few would argue that today the country is one of the most attractive hubs for cryptocurrency startups and investors (at least among CIS countries). The primary focus is on regulating cryptocurrency exchanges and ensuring user protection.

What should you know about cryptocurrency legislation in Georgia? A brief guide.

Licensing of Cryptocurrency Operations

Since 2023, Georgia has enacted legislation requiring all companies engaged in cryptocurrency activities to be licensed by the National Bank of Georgia. This includes online cryptocurrency exchanges and services offering to buy crypto. The licensing aims to strengthen the transparency of operations and protect consumer rights.

Thus, if you are looking for an online cryptocurrency exchange in Georgia, the first thing you should check is the availability of a license. It should be displayed on the exchange’s website along with the relevant number. You can see how this looks on the AllTrust.me website.

Taxation Approach

Individuals in Georgia are exempt from paying tax on profits from cryptocurrency trading. For registered companies, the corporate income tax is 15%. Additionally, there is a dividend tax of 5%. Small businesses qualifying for SBS status are provided with a preferential tax rate of 1% on profits.

AML and KYC Regulations

Georgia pays special attention to combating money laundering and terrorism financing. For instance, KYC (Know Your Customer) and AML (Anti-Money Laundering) procedures are mandatory for all cryptocurrency transactions. What does this mean for the user? If you come across an online cryptocurrency exchange that promises completely anonymous exchanges, keep in mind that this service operates without a license. The same applies to services offering to buy crypto without verification.

All licensed online cryptocurrency exchanges are required to request identity verification. For example, at AllTrust.me, you need to provide your passport number when submitting a request on the website. This is a simple and quick verification process that you shouldn’t be afraid of. On the contrary, remember that any licensed online cryptocurrency exchange is obliged to ask for identity confirmation.

Educational Initiatives

The Georgian government is taking various steps to support cryptocurrencies and blockchain technologies. Primarily, this is aimed at spreading information, education, and supporting startups in this field.

Educational Programs

In Georgia, you can find many courses and seminars dedicated to cryptocurrencies and blockchain. Many universities are integrating these technologies into their educational process.

For example, in 2018, Tbilisi University began verifying diplomas using blockchain. This became possible thanks to its collaboration with Emercoin.

Last year, the Georgian government signed a Memorandum of Understanding (MOU) with Tether. The company has already started working with local universities, introducing students to the possibilities of cryptocurrencies and related technologies.

Information Campaigns

A large amount of information is available online about the legal status of cryptocurrencies in Georgia (how to buy crypto safely, how an online cryptocurrency exchange can obtain a license, etc.). Some organizations even offer free consultations for those who want to obtain a license.

Startup Support

Startups in the field of cryptocurrencies and blockchain can apply for special grants and funding. Both locals and foreigners can obtain a crypto license. A physical office is not required.

Does this mean that buying crypto in Georgia is entirely legal?

In general, yes. If you decide to buy crypto through a licensed service, it is entirely legal. For example, AllTrust.me has a VASP license from the National Bank of Georgia.

The purchasing process takes just a few hours. You register on the website, submit a request to buy crypto online, and wait for confirmation. Then you complete the purchase at the company’s office. The AllTrust.me office is located in the center of Tbilisi.

In addition to buying through an online cryptocurrency exchange, you can also purchase crypto via a crypto ATM. This is also legal but much more expensive due to high fees.

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Thus, it can be confidently said that Georgia currently offers a fairly crypto-friendly environment. You can easily (and entirely legally!) buy crypto or exchange it for cash within a matter of hours. Moreover, local licensed online cryptocurrency exchanges are available both to Georgian citizens and foreigners.