Obtaining a crypto license in Georgia

Obtaining a crypto license in Georgia

The development of the Internet and technological innovations have led to the emergence of cryptocurrency assets that provide fast, cheap and secure transmission, storage and accounting of information. However, along with new opportunities, cryptocurrency has also become a platform for financial crime, speculation, and illicit income. Because of this, there was a need to create a modern legal and tax framework that would meet the technological opportunities and threats associated with cryptocurrencies.

Georgia is one of the few countries in the world where cryptocurrencies are not an official means of payment, but are also not prohibited. In 2019, the government of Georgia passed legislation that defined the legal status of crypto assets and granted operators of crypto exchanges and crypto payment systems the right to register their companies in Georgia.

The legislation also introduced some requirements for crypto companies, including registration and licensing, compliance with AML/KYC rules, and storage of user data. In this regard, cryptocurrency companies operating in Georgia must comply with international standards and regulatory requirements.

Despite the relative freedom of cryptocurrencies in Georgia, the Central Bank of Georgia recommends that investors be extremely careful when investing in cryptocurrencies, due to their high volatility and risks. Some steps have also been taken to prevent the use of cryptocurrencies for illegal activities such as terrorist financing, money laundering and other crimes.

How to get a crypto license in Georgia?

In Georgia, cryptocurrency companies must obtain a special license from the National Bank of Georgia in order to operate legally in the country. Licensing of cryptocurrency companies is carried out in accordance with the "Law on the National Banking System", which entered into force in 2019.

To obtain a license for cryptocurrency activities in Georgia, the following conditions must be met:

1. Register the company with the National Public Registry and obtain a certificate of incorporation.
2. Apply to the National Bank of Georgia with an application for licensing cryptocurrency activities.
3. Submit the following documents to the National Bank of Georgia:
   • business plan;
   • description of the company's activities;
   • confirmation of the identification of the founders and beneficiaries of the company;
   • financial documents confirming the availability of sufficient funds for the implementation of cryptocurrency activities;
   • positive results of the check for the absence of links with criminal structures and financing of terrorism.
4. Pay the state fee for consideration of the application.
5. Pass the verification of compliance with the requirements of the National Bank of Georgia, including verification of compliance with anti-money laundering and anti-terrorist laws.

If all conditions are met, the National Bank of Georgia issues a license for cryptocurrency activities within 30 days. After obtaining a license, a cryptocurrency company can legally operate in Georgia and provide cryptocurrency services.

Obtaining a license for cryptocurrency activities in Georgia has a number of advantages:

• There are no regulatory restrictions on cryptocurrency trading in this country, since the legislative framework in this area is just beginning to be developed.
• Registration of companies in Georgia is as simple as possible, and corporate taxes are only 15%.
• Foreign citizens can also open a company in Georgia.
• Money received from investments is not taxed if dividends are not paid within 12 months, and the low level of operating expenses is also a significant advantage.
• There are also no restrictions on cryptocurrency trading in Georgia, and individuals are not subject to income tax if it was received through the sale of cryptocurrencies.
• Cryptocurrency exchange operations for fiat (bank) money are not taxed, and the sale of hashes is also tax-free. This is especially beneficial for entrepreneurs who have set up a mining farm or an online cloud mining service.
• Cheap electricity that makes cryptocurrency mining profitable.
• There are no restrictions on crypto payments.
• Georgia is one of the leading countries in terms of ease of business registration.
• Favorable environment for the development of crypto business.
• There is no minimum authorized capital. In Georgia, there is no minimum authorized capital for registering a company. Entrepreneurs can start their business with any amount as per the requirements of their industry. Such a flexible approach allows small and medium-sized companies to create without restrictions, contributing to the development of the country's economy and attracting investment.

Before obtaining a license for a cryptocurrency business in Georgia, it is necessary to register a company. Usually, foreign investors choose Free Industrial Zones of Georgia to register their companies due to low taxes and attractive conditions for start-ups.

Licensed companies can provide services for investing in cryptocurrencies, issue their own cryptocurrencies for sale and raise funds through ICOs, as well as register crypto exchanges in Georgia and provide services for exchanging cryptocurrencies for bank funds and other digital money.

What does a company need to provide in order to obtain a cryptolicense?

• Before providing data to the auditor of the company, it is necessary to make sure that there is a document on the non-conviction of the founders, owners and directors, as well as provide information about the key persons of the company.
• If the business plan indicates the conduct of activities for the exchange of cryptocurrencies, storage or issuance of loans, it is necessary to confirm the authorized capital and a high level of solvency.
• After opening a company, you should prepare for regular audits and keep accounting records.
• Cryptocurrency exchanges and digital coin exchanges are required to notify the regulator of major changes.
• To obtain a license, an entrepreneur must provide the regulator with a detailed business plan and a list of services provided, as well as information on protection measures in case of hacker attacks.

The Exsoft team will help you to get rid of all these issues and quickly get a license to conduct crypto activities. We employ qualified lawyers, accountants, financial consultants, etc., who can quickly and easily collect all documents and apply for a crypto license in Georgia. Our team has received a large number of such licenses for our clients, which confirms our competence and professionalism. The cost of obtaining a turnkey license is 8,000 EUR. In addition, Exsoft offers software for cryptocurrency exchange services, as well as a turnkey solution for crypto exchangers. You can study the pricing policy for our services by this link.