Crypto licence in Georgia

Cryptocurrencies, such as Bitcoin, Ethereum, and others, are not only a means of storing value but also a powerful tool for transactions and financial innovation. It attracts the attention of both individual investors and corporate entities, which see it as an opportunity to expand their business operations, conduct global transactions and participate in the latest technological projects.

In this context, obtaining a crypto licence becomes a key element for those who wish to implement cryptocurrency solutions in their business. The licence not only grants the right to conduct cryptocurrency transactions but also provides an additional level of trust and legitimacy in the activity.

This is especially relevant for entrepreneurs seeking to create innovative projects and attract investors on a global scale. Therefore, today we will consider the main advantages of a crypto licence in Georgia and how to obtain it.

Legal framework

Today, Georgia has a fairly progressive and liberal legal framework for cryptocurrencies, which makes it a favourable spot for the development of cryptocurrency technologies and businesses.

Cryptos are legal here. In April 2021, the Parliament signed the Law on Currency, which defines cryptocurrency as an independent type of money that can be used to pay for goods and services. This recognises cryptocurrency as a legal instrument for payments and exchange in Georgia.

The main features of Georgian cryptocurrency legislation:

1. Licensing of crypto exchanges and exchange services: The legislation provides for mandatory licensing of cryptocurrency exchange platforms and other services, which ensures a high level of security and trust.
2. Foreign investors: Georgian legislation allows foreign investors to invest in cryptocurrency businesses and participate in financial transactions.
3. Innovation zone for technology: Georgia has a "Free Industrial Zones Act" that provides benefits and a special tax regime for companies operating in innovation zones, including cryptocurrency platforms.

Advantages of using cryptocurrency

Operating a cryptocurrency business has numerous advantages that attract entrepreneurs, investors, and innovators. Here are some of them:

• Innovative opportunities: Working with cryptocurrencies provides access to advanced blockchain technologies and decentralised systems. This makes it possible to develop new products, services, and solutions that can change traditional industries.
• Global accessibility: Cryptocurrencies allow for global transactions and collaboration without location or time zone restrictions. This is important for businesses planning to operate internationally.
• Low costs: Such transactions can be significantly cheaper than traditional financial transactions. They typically eliminate intermediaries, which reduces commissions and transaction costs.
• Accessibility to investors: The cryptocurrency market provides an opportunity to attract investors from all over the world. This can be useful for raising funding at the initial stage of a project.
• Transparency and security: Transactions on the blockchain are open and irreversible, which promotes transparency and avoids fraud. Blockchain technology also provides a high level of cryptographic security.
• Large market: The demand for cryptocurrencies and related services is constantly growing, opening up ample opportunities for companies that decide to enter the sector.
• Ease of exchange: Cryptocurrencies can be easily exchanged for other currencies and assets, which simplifies conversion and settlement
• Promoting financial inclusion: Cryptocurrency operations can provide access to financial services for those who were previously excluded due to geographic location, lack of bank accounts, etc.

How to get a crypto license?

Obtaining a cryptocurrency licence in Georgia is an important step in conducting legal and regulated activities in the field of cryptocurrencies. There are certain steps and requirements to follow in order to obtain a licence:

1. Company registration: The first step is to register a company in Georgia. To do this, you need to apply to the National Agency for Public Registry and Taxes with the relevant documents.
2. Filling out an application: After the company is registered, you need to fill out an application for a crypto licence. The application contains information about the business model, plans, and the scope of activities with cryptocurrencies.
3. Providing documents: To obtain a licence, a number of documents must be provided, including copies of the company's charter, registration certificate, director's identification code, etc.
4. Financial guarantee: One of the important steps is to provide a financial guarantee on a bank account for a certain amount. This amount may vary depending on the type of activity and plans of the company.
5. Certificate of compliance: The company must obtain a certificate of compliance that confirms its ability to meet the requirements of data security and protection.
6. Control person: The director of the company, who will manage the cryptocurrency activities, must meet the requirements of the National Bank of Georgia and have no problems with the law.
7. Compliance with legal requirements: The company must ensure compliance with the requirements for the prevention of money laundering and terrorist financing.
8. Submission of documents: After collecting all the documents and making the appropriate preparations, the company submits an application and documents to the National Bank of Georgia.

After passing all these stages and meeting the requirements, the firm can get a crypto licence from the National Bank of Georgia. It is important to note that the licensing process may take some time and requires compliance with high standards of business activity and security.

Why choose Georgia?

The choice of Georgia for opening a company and obtaining a crypto licence is justified by a number of advantages and opportunities that this country provides to entrepreneurs and investors.

Easy company registration

Additional requirements

To open a company and obtain a crypto licence in Georgia, Georgian citizenship is not a prerequisite. Georgian legislation allows foreign citizens and non-residents to open a company and obtain a licence.

However, it is important to consider some aspects:

1. Bank accounts: To conduct operations, you need to open a bank account with a Georgian bank, and there may be requirements regarding the status of the client.
2. Location of the representative office: You can start a firm as a non-resident, but there may be a requirement to have a representative office or partnership with a Georgian resident to ensure cooperation with local structures.
3. Compliance with the law: Prior to obtaining a crypto licence, you should study the conditions and requirements of the regulator to ensure that you meet their requirements.
4. Powers of the management: Some licensable activities may require that the company's director has the status of a resident or citizen of Georgia.

In general, although Georgian citizenship is not a prerequisite for opening a company and obtaining a crypto licence, you should carefully read the requirements and conditions and possibly seek legal support to ensure a successful and hassle-free process.

Conclusion

Getting a crypto licence here is a crucial step for those eager to participate in law and regulated crypto activities. By developing an innovative and friendly environment, this country is becoming an alluring destination for those wishing to conduct cryptocurrency transactions legally. Legislative reforms, the official recognition of cryptos, a favourable regulatory approach and the ability to work even for non-citizens create favourable circumstances for the growth of this industry sector.

It also allows companies to carry out various financial transactions, including asset management, cryptocurrency trading, ICOs, etc. in compliance with legal requirements and security standards. This process provides the opportunity to work with the authorities to implement new ideas and technologies.