Is Crypto Legal In Georgia?

Cryptocurrency is legal in Georgia under a comprehensive regulatory framework established in January 2023 through amendments to the Law on the National Bank of Georgia. Virtual assets are defined as digital representations of value that are interchangeable and non-unique, can be digitally traded or transferred, and used for investments or payment purposes, excluding digital representations of fiat currencies, securities, or financial instruments (1). All Virtual Asset Service Providers must register with the National Bank of Georgia and comply with strict anti-money laundering and counter-terrorism financing requirements aligned with Financial Action Task Force recommendations (2).

The National Bank of Georgia oversees VASPs through registration approval and revocation, establishing eligibility criteria for administrators, conducting AML/CFT inspections, and defining requirements for information accompanying virtual asset transfers. Virtual assets are explicitly not legal tender, and payments using cryptocurrencies are prohibited except for exceptional cases defined by the NBG necessary for providing virtual asset services (1). VASPs are authorized to receive commissions, interest, or fees in the same virtual asset used for services provided, and may transfer funds obtained from convertible virtual asset exchanges to payment service providers under customer instructions (1).

"Payments with virtual assets are prohibited, except for cases determined by a legal act of the National Bank of Georgia, which are necessary for the provision of virtual asset services."

Georgia maintains one of the most favorable tax environments for cryptocurrency, exempting individuals from income tax on crypto trading profits at a 0% rate since June 28, 2019. The legislation requires VASPs to implement compliance programs, report suspicious activities, and meet fit and proper criteria for administrators (2). The regulatory framework does not include prudential regulation or consumer rights protection at this stage, focusing primarily on preventing money laundering and terrorist financing (1). Financial institutions including commercial banks, micro-banks, microfinance organizations, and brokerage companies are permitted to provide limited virtual asset services including custody, exchange, and trading platforms alongside their traditional activities (1).

Source:
https://nbg.gov.ge/en/faq/125
https://www.dentons.com/en/insights/articles/2023/april/21/regulation-of-virtual-assets-in-georgia

Last updated: 18-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.