Georgia Cryptocurrency Regulations: What You Need to Know

When dealing with Georgia cryptocurrency regulations, the legal framework that controls digital‑asset activities in the country of Georgia. Also known as Georgian crypto law, it shapes how investors, developers, and service providers operate. Crypto exchange licensing, the authorization process required for platforms to offer trading services is a core pillar, while taxation policy, the set of tax rules applied to crypto profits and transactions determines the fiscal impact. Finally, AML/KYC compliance, anti‑money‑laundering and know‑your‑customer obligations for crypto businesses ensures the ecosystem stays within international standards.

Georgia’s approach blends openness with strict oversight. The government encourages blockchain innovation, yet every exchange must obtain a license from the National Bank of Georgia. This licensing requirement creates a direct link: Georgia cryptocurrency regulations encompass exchange licensing, meaning no platform can legally operate without approval. The licensing fee is tiered based on trading volume, and compliance audits occur quarterly. On the tax side, capital gains from crypto are treated as ordinary income, taxed at personal income rates ranging from 20% to 25%. Consequently, taxation policy influences exchange operations because higher tax burdens push firms to offer more efficient reporting tools.

Key Takeaways for Crypto Businesses in Georgia

First, Georgia cryptocurrency regulations demand a clear AML/KYC framework. Companies must verify user identities using government‑issued IDs, run transaction monitoring software, and retain records for five years. Failure to meet these standards can result in license suspension or hefty fines. Second, the tax authority requires annual filing of crypto‑related income, and practitioners often use specialized accounting software to generate compliant reports. Third, the licensing process emphasizes security: platforms must implement multi‑factor authentication, cold‑storage solutions for at least 70% of assets, and regular penetration testing. Finally, the regulatory environment is evolving—new amendments are expected to address decentralized finance (DeFi) protocols, which could introduce additional reporting layers for smart‑contract interactions.

All these pieces fit together: the legal framework sets the stage, licensing grants permission, tax rules dictate financial planning, and AML/KYC safeguards the system. Below you’ll find a curated list of articles that break down each aspect in detail, from step‑by‑step licensing guides to tax‑optimisation strategies and compliance checklists. Dive in to see how the latest rules affect your crypto activities and get actionable insights that keep you ahead of the curve.