25/09/25
Georgia has recently formalised its regulatory stance on cryptocurrency via the Law on Virtual Asset Service Providers (VASP) Registration Procedure, effective 1 July 2023. This creates clear obligations for crypto firms to register with the National Bank of Georgia (NBG) and comply with anti-money laundering (AML) and know your customer (KYC) rules. The move marks a turning point for firms operating in crypto-assets, defining legal status and risk.
š Key Facts & Regulatory Framework
Georgia now recognises cryptocurrency as legal, though it is not legal tender; only the Georgian Lari retains that status.
Under the VASP Registration Procedure law, every entity providing virtual asset services must register with the NBG. Additionally, firms are bound by the Law on Facilitating the Suppression of Money Laundering and Terrorism Financing, obliging them to institute AML/KYC protocols and report suspicious activity to the Financial Monitoring Service (FMS).
š Analysis & Comparative Insight
Georgiaās approach follows international expectations, particularly those of the Financial Action Task Force (FATF). Many jurisdictions have adopted similar registration/licensing regimes for virtualāasset service providers. What sets Georgia apart is the tax treatment: individuals realise profits on crypto sales free from income tax, and transactions are exempt from VAT, easing burdens on retail participants.
š Practical Examples & Sector-Specific Impact
Crypto exchanges and wallet providers must now implement full KYC on onboarding, monitor transactions, and report anomalies. Firms lacking robust internal controls risk enforcement action or being barred from operating. Meanwhile, miners and pools are exempt from registering as VASPs, which preserves space for mining operations to continue with fewer regulatory burdens.
ā Conclusion
Georgiaās crypto licensing regime clarifies regulatory expectations: crypto providers must register, implement AML/KYC, and operate under oversight by the National Bank and the Financial Monitoring Service. While crypto still isnāt legal tender, the legal framework gives operators certainty and aligns the country with FATF standards. For entities seeking to enter Georgiaās crypto market-or already operating there-careful legal due diligence is essential. Reach out to NUR Legal for guidance on compliance, licensing applications, and managing regulatory risks in this evolving field. Visit us at NUR-Legal.com or contact us directly at info@nur-legal.com
Emil Korpinen