Georgia

Retail_Trading_Status

Allowed-Regulated Unknown

Analysis ID: #361
Version: Latest
Created: 2025-06-26 12:55
Run: cb1cc08e...
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Workflow Stage: Live

Executive Summary

In Georgia, individuals are legally permitted to buy, sell, and hold cryptocurrencies, recognized as digital assets but not legal tender. The National Bank of Georgia (NBG) regulates Virtual Asset Service Providers (VASPs) since January 1, 2023, mandating registration and compliance with AML/CFT standards. Individual crypto traders do not need a VASP license, and profits may be exempt from income tax. The Georgian government aims to balance innovation with security in the virtual asset space.

Key Pillars

The primary regulator is the National Bank of Georgia (NBG), which oversees Virtual Asset Service Providers (VASPs). Core compliance requirements for VASPs include Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) policies, Customer Due Diligence (KYC), and transaction monitoring. VASPs are required to register with the NBG to obtain a license.

Landmark Laws

Effective January 1, 2023, new laws came into force regarding virtual assets. By July 1, 2023, the National Bank of Georgia (NBG) established rules for the registration and regulation of Virtual Asset Service Providers (VASPs). These regulations mandate registration with the NBG and adherence to operational and compliance standards.

Considerations

Cryptocurrencies are recognized as digital assets in Georgia but are not legal tender. Profits from personal crypto trading by resident individuals are generally exempt from income tax as they are considered foreign-sourced income. The exchange of cryptocurrencies for fiat currencies is not subject to Value Added Tax (VAT). The NBG oversees VASPs to ensure compliance with AML/CFT requirements.

Notes

Historically, Georgia was known for its crypto-friendly environment, attracting miners due to low electricity costs and minimal regulation. The regulatory framework is evolving to balance innovation with security. The Financial Intelligence Unit of Latvia conducted a study visit with Georgian authorities in February 2024. Individuals can use crypto in barter exchange transactions, like purchasing real estate, if both parties agree.

Detailed Explanation

Georgia permits individual citizens and residents to buy, sell, and hold cryptocurrencies, recognizing them as digital assets but not as legal tender. The regulatory environment has evolved significantly since January 1, 2023, when new laws came into force and by July 1, 2023, when the National Bank of Georgia (NBG) established rules for Virtual Asset Service Providers (VASPs). These changes were implemented to align with international standards, particularly the Financial Action Task Force (FATF) recommendations, and to mitigate risks associated with money laundering and terrorism financing. VASPs, including exchanges and wallet services, must register with the NBG and adhere to specific operational and compliance standards.

According to LegalBison (2025-04-25), individuals using their own funds for trading are not subject to VASP registration, meaning no license is required for individual crypto trading. However, companies offering exchange services must register as VASPs. The NBG grants crypto licenses and enforces the law through the Financial Monitoring Service (FMS), as noted by LegalBison (2025-04-25). The framework has been live since August 1, 2023, when the NBG amended its AML-CFT rules.

ExpatHub notes that virtual assets are not legal tender, and the Georgian Lari remains the sole legal currency. However, virtual assets can be used for payments through VASPs. Individual crypto miners and traders do not need to register. ICO Bench (2025-06-01) confirms that residents can freely buy, sell, and trade crypto, and crypto ownership for personal use is legal. Profits from personal crypto trading are considered foreign-sourced and are exempt from taxation.

Crystal Intelligence (2023-07-01) reported that on June 13, 2023, the NBG issued new regulations for VASPs, overseeing their operations and ensuring they meet AML/CFT requirements. Manimama Law Firm states that while Georgia does not recognize cryptocurrency as official means of payment, it supports the development of this activity, requiring a crypto license from the NBG for service providers. LTA Law Firm confirms that owning and trading cryptocurrency is legal, with generally 0% tax rates on gains for individual traders, with certain exceptions. 1tab (2025-04-18) also affirms the legality of cryptocurrency and the absence of restrictions on owning or using crypto for transactions. The Georgian government continues to refine the regulatory framework to balance innovation with security and transparency, as evidenced by the UNECE report dated 2025-04-10, referencing Jan 2023 regulations and the Financial Intelligence Unit of Latvia's study visit in Feb 2024.

Summary Points

Retail Trading of Cryptocurrencies in Georgia: Regulatory Overview

Regulatory Status: Allowed-Regulated

I. Key Regulatory Bodies and Their Roles

National Bank of Georgia (NBG):
- Primary regulatory body for Virtual Asset Service Providers (VASPs).
- Grants crypto licenses to VASPs.
- Enacts and enforces regulations, including AML/CFT rules.
- Oversees VASP operations to ensure compliance.
Financial Monitoring Service (FMS):
- Enforces regulations through the NBG.
- Receives suspicious activity reports from VASPs.

II. Important Legislation and Regulations

Effective January 1, 2023: New laws came into force regarding virtual assets.
July 1, 2023: NBG established rules for registration and regulation of VASPs.
Key Regulations:
- VASPs must register with the NBG.
- VASPs must adhere to specific operational and compliance standards.
- AML/CFT policies and procedures are mandatory for VASPs.
- Customer due diligence (KYC) is required for VASPs.
- Transaction monitoring is required for VASPs.
- Reporting suspicious activities to the FMS is required for VASPs.

III. Requirements for Compliance (VASPs)

Registration with NBG: Mandatory for companies offering crypto-related services.
AML/CFT Compliance:
- Implement robust AML/CFT policies and procedures.
- Conduct customer due diligence (KYC).
- Monitor transactions.
- Report suspicious activities.
Operational Standards: Adhere to specific operational standards set by the NBG.

IV. Notable Restrictions or Limitations

Not Legal Tender: Cryptocurrencies are not legal tender in Georgia. The Georgian Lari is the sole legal tender.
VASP Requirement for Certain Transactions: Using virtual assets for payment requires using Virtual Asset Service Providers (“VASP”).

V. Retail Trader Status and Regulations

Allowed to Buy, Sell, and Hold: Individual citizens and residents are legally permitted to buy, sell, and hold cryptocurrencies.
No VASP License Required: Individuals trading with their own funds or virtual assets do not need a VASP license.
Taxation:
- Profits from personal crypto trading are generally exempt from income tax (considered foreign-sourced income).
- Exchange of cryptocurrencies for fiat (Georgian Lari) is not subject to Value Added Tax (VAT).
Barter Transactions Allowed: Cryptocurrencies can be used in barter exchange transactions (e.g., purchasing real estate) if both parties agree.

VI. Recent Developments or Changes

Increased Regulation: Shift from a largely unregulated space to a more structured framework.
Alignment with FATF Recommendations: Regulations implemented to align with international standards and mitigate risks.
Ongoing Refinement: Georgian government and NBG are continuously refining the regulatory framework.
Enhanced Data Collection: Efforts to enhance data collection on crypto activities.
Focus on Compliance: Ensuring VASPs meet their compliance obligations.

Full Analysis Report

Report on Retail Trading Status of Cryptocurrencies 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 in Georgia

Identified Status: Allowed-Regulated

Narrative Explanation:

Individual citizens and residents in Georgia are legally permitted to buy, sell, and hold cryptocurrencies. While not considered legal tender, cryptocurrencies are recognized as digital assets. The regulatory environment for cryptocurrencies in Georgia has evolved significantly, moving from a largely unregulated space to a more structured framework.

Historically, Georgia was known for its crypto-friendly stance, attracting miners due to low electricity costs and minimal regulation. However, to align with international standards, particularly the Financial Action Task Force (FATF) recommendations, and to mitigate risks associated with money laundering and terrorism financing, Georgia has implemented new regulations.

Effective January 1, 2023, new laws came into force, and by July 1, 2023, the National Bank of Georgia (NBG) established rules for the registration and regulation of Virtual Asset Service Providers (VASPs). These regulations mandate that companies offering crypto-related services, such as exchanges, wallet services, and initial coin offerings (ICOs), must register with the NBG and adhere to specific operational and compliance standards.

For individual retail traders, the act of buying, selling, or holding cryptocurrencies for personal use does not require a VASP license. Profits from personal crypto trading by resident individuals are generally exempt from income tax, as they are often considered foreign-sourced income. Additionally, the exchange of cryptocurrencies for fiat currencies (like the Georgian Lari) is not subject to Value Added Tax (VAT).

However, when individuals transact through VASPs, these platforms are subject to regulatory scrutiny. VASPs are required to implement robust Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) policies and procedures. This includes customer due diligence (Know Your Customer - KYC), transaction monitoring, and reporting suspicious activities to the Financial Monitoring Service of Georgia. The NBG oversees these VASPs to ensure compliance.

While cryptocurrencies cannot be used as legal tender for payments in Georgia (the Georgian Lari remains the sole legal tender), they can be used in barter exchange transactions, such as purchasing real estate, provided both parties agree.

The Georgian government and the NBG have indicated an ongoing effort to refine the regulatory framework to balance innovation with security and transparency in the virtual asset space. This includes enhancing data collection on crypto activities and ensuring VASPs meet their compliance obligations.

Specific, Relevant Text Excerpts:

LegalBison (2025-04-25): "The Georgian law states that if an individual uses his/her own funds or virtual assets for trading, it is not subject to registration as a Virtual Asset Service Provider. Therefore, no license is required to trade crypto in Georgia. Companies willing to offer exchange services for their customers, however, are subject to licensing and should then register as a VASP in Georgia before starting their operations."
LegalBison (2025-04-25): "The crypto license in Georgia is granted by the National Bank of Georgia, which is also responsible for enacting the law and enforcing it through the Financial Monitoring Service (FMS). The framework has been live since August 1, 2023, when the National Bank of Georgia edited its AML-CFT and compliance rules to integrate virtual assets, subsequently issuing guidelines for virtual asset service providers."
ExpatHub (Date not specified, content appears current as of early 2023 regulations): "It is official – a Virtual Asset is not a form of legal tender... 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”)."
ExpatHub (Date not specified): "Under the law, VASPs shall register with the National Bank of Georgia. Otherwise, they will have to stop providing the service. The obligation to get registered does not apply to: Individual crypto miners. Individuals participating in a Bitcoin mining pool. Individual traders."
ICO Bench (2025-06-01): "As a resident in the country, you can buy, sell, and trade crypto freely. Crypto ownership for personal use is fully legal in the country."
ICO Bench (2025-06-01): "Profits from personal crypto trading are exempt from taxation because the government considers them as foreign-sourced."
Crystal Intelligence (2023-07-01): "On June 13, 2023, the National Bank of Georgia (NBG) issued a new regulation for Virtual Asset Service Providers (VASPs) operating in Georgia... The NBG will oversee the operations of virtual asset services providers and ensure that they meet the necessary AML/CFT requirements."
Manimama Law Firm (Date not specified, references 2023 regulations): "This jurisdiction does not recognize cryptocurrency as an official means of payment, but at the same time it supports the development of this type of activity in the country. According to Georgian legislation, in order to carry out activities with virtual assets, a cryptolicense must be obtained from the National Bank of Georgia [for service providers]."
LTA Law Firm (Date not specified, appears current): "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."
1tab (2025-04-18): "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."

Direct, Accessible URL Links to Sources:

## Report on Retail Trading Status of Cryptocurrencies 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 in Georgia

**Identified Status:** Allowed-Regulated

**Narrative Explanation:**

Individual citizens and residents in Georgia are legally permitted to buy, sell, and hold cryptocurrencies. While not considered legal tender, cryptocurrencies are recognized as digital assets. The regulatory environment for cryptocurrencies in Georgia has evolved significantly, moving from a largely unregulated space to a more structured framework.

Historically, Georgia was known for its crypto-friendly stance, attracting miners due to low electricity costs and minimal regulation. However, to align with international standards, particularly the Financial Action Task Force (FATF) recommendations, and to mitigate risks associated with money laundering and terrorism financing, Georgia has implemented new regulations.

Effective January 1, 2023, new laws came into force, and by July 1, 2023, the National Bank of Georgia (NBG) established rules for the registration and regulation of Virtual Asset Service Providers (VASPs). These regulations mandate that companies offering crypto-related services, such as exchanges, wallet services, and initial coin offerings (ICOs), must register with the NBG and adhere to specific operational and compliance standards.

For individual retail traders, the act of buying, selling, or holding cryptocurrencies for personal use does not require a VASP license. Profits from personal crypto trading by resident individuals are generally exempt from income tax, as they are often considered foreign-sourced income. Additionally, the exchange of cryptocurrencies for fiat currencies (like the Georgian Lari) is not subject to Value Added Tax (VAT).

However, when individuals transact through VASPs, these platforms are subject to regulatory scrutiny. VASPs are required to implement robust Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) policies and procedures. This includes customer due diligence (Know Your Customer - KYC), transaction monitoring, and reporting suspicious activities to the Financial Monitoring Service of Georgia. The NBG oversees these VASPs to ensure compliance.

While cryptocurrencies cannot be used as legal tender for payments in Georgia (the Georgian Lari remains the sole legal tender), they can be used in barter exchange transactions, such as purchasing real estate, provided both parties agree.

The Georgian government and the NBG have indicated an ongoing effort to refine the regulatory framework to balance innovation with security and transparency in the virtual asset space. This includes enhancing data collection on crypto activities and ensuring VASPs meet their compliance obligations.

**Specific, Relevant Text Excerpts:**

*   **LegalBison (2025-04-25):** "The Georgian law states that if an individual uses his/her own funds or virtual assets for trading, it is not subject to registration as a Virtual Asset Service Provider. Therefore, no license is required to trade crypto in Georgia. Companies willing to offer exchange services for their customers, however, are subject to licensing and should then register as a VASP in Georgia before starting their operations."
*   **LegalBison (2025-04-25):** "The crypto license in Georgia is granted by the National Bank of Georgia, which is also responsible for enacting the law and enforcing it through the Financial Monitoring Service (FMS). The framework has been live since August 1, 2023, when the National Bank of Georgia edited its AML-CFT and compliance rules to integrate virtual assets, subsequently issuing guidelines for virtual asset service providers."
*   **ExpatHub (Date not specified, content appears current as of early 2023 regulations):** "It is official – a Virtual Asset is not a form of legal tender... 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”)."
*   **ExpatHub (Date not specified):** "Under the law, VASPs shall register with the National Bank of Georgia. Otherwise, they will have to stop providing the service. The obligation to get registered does not apply to: Individual crypto miners. Individuals participating in a Bitcoin mining pool. Individual traders."
*   **ICO Bench (2025-06-01):** "As a resident in the country, you can buy, sell, and trade crypto freely. Crypto ownership for personal use is fully legal in the country."
*   **ICO Bench (2025-06-01):** "Profits from personal crypto trading are exempt from taxation because the government considers them as foreign-sourced."
*   **Crystal Intelligence (2023-07-01):** "On June 13, 2023, the National Bank of Georgia (NBG) issued a new regulation for Virtual Asset Service Providers (VASPs) operating in Georgia... The NBG will oversee the operations of virtual asset services providers and ensure that they meet the necessary AML/CFT requirements."
*   **Manimama Law Firm (Date not specified, references 2023 regulations):** "This jurisdiction does not recognize cryptocurrency as an official means of payment, but at the same time it supports the development of this type of activity in the country. According to Georgian legislation, in order to carry out activities with virtual assets, a cryptolicense must be obtained from the National Bank of Georgia [for service providers]."
*   **LTA Law Firm (Date not specified, appears current):** "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."
*   **1tab (2025-04-18):** "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."

**Direct, Accessible URL Links to Sources:**

*   [LegalBison (2025-04-25)](https://legalbison.com/georgia-crypto-license/)
*   [Manimama Law Firm](https://manimama.com/en/cryptolicense-in-georgia-from-legislation-to-practice/)
*   [ExpatHub](https://expathub.ge/new-crypto-regulations-in-georgia-country/)
*   [UNECE (Report dated 2025-04-10, referencing Jan 2023 regulations)](https://unece.org/sites/default/files/2024-04/CES_2024_GEIDE_S5_P2_GEO_Georgia.pdf) (Note: While the document is from UNECE, it summarizes NBG's role and new regulations)
*   [Prifinance (Content references 2023 regulations)](https://prifinance.com/en/blog/crypto-licenses/georgia-crypto-exchange-license-vasp-registration-framework/)
*   [Crystal Intelligence (2023-07-01)](https://crystalblockchain.com/news-and-resources/georgia-moves-forward-with-crypto-regulation/)
*   [International Wealth (Content references 2024, but aligns with 2023 regulations)](https://internationalwealth.info/en/offshore-licenses/crypto-licenses-in-georgia/)
*   [1tab (2025-04-18)](https://1tab.io/en/blog/how-to-cash-out-crypto-in-georgia)
*   [LTA Law Firm](https://lta.ge/en/articles/crypto-license-georgia/)
*   [ExpatHub (Cryptocurrency in Georgia & Tbilisi)](https://expathub.ge/cryptocurrency-in-georgia-tbilisi/)
*   [Freeman Law (Content predates 2023 VASP regulations but covers taxation)](https://freemanlaw.com/georgia-and-cryptocurrency/)
*   [ICO Bench (2025-06-01)](https://icobench.com/compare-exchanges/georgia)
*   [Sanction Scanner (2024-05-14, referencing 2023 regulations)](https://sanctionscanner.com/blog/anti-money-laundering-aml-in-georgia-268)
*   [REVERA law group (2025-05-19)](https://revera.legal/insights/tax-residency-for-crypto-investors-georgia-as-a-tax-haven)
*   [OSCE (2024-02-23)](https://www.osce.org/oceea/563000)
*   [Gofaizen & Sherle (Content references 2023 regulations)](https://gofaizen-sherle.com/georgia/crypto-license)
*   [Financial Intelligence Unit of Latvia (FIU Latvia) (Referencing Feb 2024 study visit with Georgian authorities)](https://fiu.gov.lv/en/news/fiu-latvia-hosts-officials-from-the-national-bank-of-georgia-and-the-financial-monitoring-service-of-georgia)
*   [Proelium Law LLP (Cryptocurrency Regulation Tracker - Georgia entry references June 2023 NBG regulation)](https://www.proeliumlaw.com/crypto-regulation-tracker/)

Web Sources (19)

Sources discovered via web search grounding

Search queries used (6)

retail cryptocurrency trading regulations Georgia (country)
National Bank of Georgia cryptocurrency policy
Georgia (country) crypto KYC/AML requirements
Are Georgians allowed to buy and sell cryptocurrency?
Legal status of cryptocurrency in Georgia (country) 2024 2025
Financial monitoring service of Georgia cryptocurrency

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