Georgia

## Report on Retail Cryptocurrency Trading Status in Georgia

**Date:** 2025-06-26

**Topic:** Retail_Trading_Status

**Description:** Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).

---

### Retail_Trading_Status: Allowed-Regulated

**Narrative Explanation:**

Individual citizens and residents in Georgia are legally permitted to buy, sell, and hold cryptocurrencies. While cryptocurrency is not recognized as legal tender (the Georgian Lari remains the sole legal currency), it is acknowledged as a digital asset, and there are no general restrictions on owning or transacting with it.

Historically, Georgia has been an attractive destination for cryptocurrency-related activities, including mining, due to factors like low electricity costs and a previously less stringent regulatory environment. However, the regulatory landscape has evolved significantly.

Starting January 1, 2023, new regulations came into force, and on July 1, 2023, the National Bank of Georgia (NBG) implemented Decree No. 94/04, titled "Rules for registration of virtual asset service provider with the National Bank of Georgia, cancellation of registration and regulation." This marked a significant step towards regulating the sector, aligning with international standards such as those set by the Financial Action Task Force (FATF) to combat money laundering and terrorist financing.

These regulations primarily target Virtual Asset Service Providers (VASPs). VASPs, which include entities offering services like cryptocurrency exchange (including crypto ATMs), transfer, storage, portfolio management, and initial coin offerings, are now required to register with the National Bank of Georgia and obtain a license. This registration process involves meeting specific criteria, including having a legal entity registered in Georgia, implementing robust Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) policies and procedures, ensuring customer identification (KYC), and demonstrating financial solvency. The state fee for VASP registration is GEL 5,000.

For individual retail traders, this means that while they are free to engage in cryptocurrency trading, they will increasingly interact with VASPs that are subject to these regulatory requirements. These requirements include identifying and verifying clients, particularly for transactions exceeding certain thresholds (e.g., GEL 3,000, USD 1,000, or EUR 1,000 for one-time transactions). VASPs must also implement transaction monitoring systems to detect unusual or significant transactions.

It's important to note that while individuals can legally trade and hold cryptocurrencies, using them directly for payments for goods and services is generally not permitted as they are not legal tender. However, payments can be facilitated through VASPs that convert the cryptocurrency into fiat currency.

Taxation of cryptocurrency for individuals in Georgia is generally favorable. Profits from the sale of cryptocurrencies by resident individuals are often exempt from personal income tax, being considered foreign-sourced income. The exchange of cryptocurrencies for fiat currency is also not subject to VAT for individuals. However, tax regulations can be complex, and individuals are advised to consult with tax advisors for their specific situations.

In summary, retail cryptocurrency trading in Georgia is permitted and is now operating within a developing regulatory framework focused on licensing VASPs and ensuring AML/CFT compliance. This provides a level of oversight and security for the market while still allowing individuals to participate in cryptocurrency activities.

**Relevant Text Excerpts and Sources:**

*   **Manimama Law Firm (referencing Decree No. 94/04):** "Thus, in 2023, the Georgian government - took an active stance in regulating this dynamic sector and already since July 1, 2023, Decree No. 94/04 'Rules for registration of virtual asset service provider with the National Bank of Georgia, cancellation of registration and regulation' (Decree No. 94/04) has been in force in this jurisdiction. Consequently, all companies that want to engage in cryptocurrency activities must now obtain a cryptolicense."
    *   **Source URL:** [https://manimama.com/en/cryptolicense-in-georgia-from-legislation-to-practice/](https://manimama.com/en/cryptolicense-in-georgia-from-legislation-to-practice/)
*   **ExpatHub:** "It is official – a Virtual Asset is not a form of legal tender. Although, the National Bank has the power to determine exceptional cases. The only legal currency for transactions in Georgia has always been and remains the Georgian Lari. However, now the law directly indicates a provision specifically banning Virtual Assets from being used as legal tender. But you can still use Virtual Assets (Cryptocurrency) payment. This is if you are making the payment through Virtual Asset Service Providers (“VASP”)."
    *   **Source URL:** [https://expathub.ge/new-crypto-regulations-in-georgia-country/](https://expathub.ge/new-crypto-regulations-in-georgia-country/)
*   **Gofaizen & Sherle:** "Georgia does not recognize cryptocurrency as an official means of payment, but at the same time, it favors the development of this type of activity in the country. At the moment, the local cryptocurrency sector is supervised and regulated by the National Bank of Georgia. You need to obtain a cryptocurrency license in Georgia for legal cryptocurrency activities."
    *   **Source URL:** [https://gofaizen-sherle.com/crypto-license/georgia](https://gofaizen-sherle.com/crypto-license/georgia)
*   **1tab:** "Yes, cryptocurrency is legal in Georgia. While crypto is not considered legal tender, it is recognized as a digital asset, and there are no restrictions on owning or using crypto for transactions. In fact, Georgia is one of the more crypto-friendly countries in the region. The National Bank of Georgia recently introduced regulations to ensure transparent and compliant crypto operations."
    *   **Source URL:** [https://1tab.io/blog/how-to-cash-out-crypto-in-georgia/](https://1tab.io/blog/how-to-cash-out-crypto-in-georgia/)
*   **Crystal Intelligence (referencing NBG regulation of June 13, 2023):** "On June 13, 2023, the National Bank of Georgia (NBG) issued a new regulation for Virtual Asset Service Providers (VASPs) operating in Georgia. The regulation applies to those who are obliged to register with the NBG or those who wish to carry out virtual asset services in Georgia in the future. The newly announced regulation stipulates the registration procedure for VASPs."
    *   **Source URL:** [https://crystalblockchain.com/news-and-resources/georgia-moves-forward-with-crypto-regulation/](https://crystalblockchain.com/news-and-resources/georgia-moves-forward-with-crypto-regulation/)
*   **LTA Law Firm:** "Owning and trading cryptocurrency is legal in Georgia. Furthermore, the crypto tax rates on gains for individual traders are generally set at 0%, except for specific exceptions that may apply. This favorable taxation environment makes Georgia an attractive destination for cryptocurrency enthusiasts." And, "The resolution of the National Bank does not apply to persons who buy and sell cryptocurrencies and engage in mining themselves. Only intermediaries need to be registered for transactions - the main characteristic of a VASP."
    *   **Source URL:** [https://lta.ge/en/services/crypto-lawyer/](https://lta.ge/en/services/crypto-lawyer/)
*   **REVERA law group (updated May 19, 2025):** "For Individual Traders: Income Tax: Profits from cryptocurrency trading are exempt from income tax for Georgian resident individuals. This exemption applies because such income is considered foreign-sourced and, therefore, not taxable in Georgia. Value Added Tax (VAT): The exchange of cryptocurrencies into national or foreign currencies is not subject to VAT."
    *   **Source URL:** [https://revera.legal/insights/tax-residency-for-crypto-investors-georgia-as-a-tax-haven/](https://revera.legal/insights/tax-residency-for-crypto-investors-georgia-as-a-tax-haven/)
*   **GeCrypto (referencing regulations as of May 2025):** "As of May 2025, cryptocurrencies are not recognized as official legal tender, but their use is permitted for both residents and non-residents. Exchange is possible via: crypto ATMs; licensed exchange offices; online crypto exchanges." And, "Since September 1, 2023, a local version of the European VASP regulation has been in effect in the country. The law does not prohibit the use of cryptocurrencies but increases the transparency of exchanges and investment companies. All organizations are required to monitor transactions and report suspicious activity related to money laundering or terrorist financing."
    *   **Source URL:** [https://gecrypto.io/en/blog/is-crypto-legal-in-georgia](https://gecrypto.io/en/blog/is-crypto-legal-in-georgia)
*   **ICO Bench (updated May 28, 2025):** "Cryptocurrency operations are legal even though virtual assets are not recognized as legal tender. But they are incorporated into the country's financial framework. There is also an atmosphere of legitimacy to cryptocurrency operations in the country. That is because crypto exchanges and other related businesses must register with the National Bank of Georgia and comply with all anti-money laundering laws."
    *   **Source URL:** [https://icobench.com/blog/how-to-buy-crypto-in-georgia](https://icobench.com/blog/how-to-buy-crypto-in-georgia)