08/10/25
Georgia has introduced a legal framework for virtual assets, including cryptocurrency, aligning with FATF recommendations and imposing regulatory obligations on Virtual Asset Service Providers (VASPs). These changes mark a significant shift for businesses and investors operating in the Georgian crypto market.
📝 Key Regulatory Framework:
Effective January 1, 2025, Georgia’s law defines Virtual Assets and VASPs, regulating cryptocurrency trading and service provision. VASPs must register with the National Bank of Georgia and comply with anti-money laundering (AML) and counter-terrorist financing (CTF) obligations under the Law on Facilitating the Prevention of Money Laundering and the Financing of Terrorism. Cryptocurrency remains non-legal tender, but payments via VASPs converting crypto to fiat are permitted.
⚖️ Legal Implications:
Compared with other jurisdictions, Georgia offers a unique balance: a previously 0% tax environment now incorporates strict compliance measures without deterring crypto activity. VASPs are considered “Accountable Persons,” requiring client verification for transactions above GEL 3,000 (USD/EUR 1,000) and adherence to the “travel rule” for transaction traceability. This approach mirrors global AML trends while preserving market attractiveness.
💡 Practical Impact:
Crypto exchanges, portfolio managers, and payment facilitators must update internal compliance systems. Individual miners and traders are largely unaffected, but businesses must navigate registration, documentation, and ongoing reporting obligations. Early adaptation ensures smooth operations and regulatory compliance.
✅ Conclusion:
Georgia is establishing itself as a compliant, transparent crypto hub. Businesses engaging in virtual assets must understand VASP registration, AML responsibilities, and payment mechanisms. Contact NUR Legal for tailored guidance to navigate Georgia’s evolving crypto landscape. Visit us at NUR-Legal.com or contact us directly at info@nur-legal.com
Emil Korpinen