Crypto-currencies gained significant spreadness and acceptance globally, leading to emergence of various regulations and licensing-schemes. In Georgia, capital-holders and legal formations interested in cryptocurrency-related deals can obtain a crypto-license issued by the government. In this informative guide, we’ll cover the process of getting a crypto-license in Georgia, including the issuing authority, eligibility criteria, mandatory documents, processing time, and potential hassles.
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Introduction to Crypto-Licensing in Georgia: Regulatory Framework
Crypto-companies must be registered with National Bank as Virtual Assetы Services Providers. Practically, Georgian legislatiму basis is grounded on EU MiCA-rules, designed to be translucent, uniform and safe.
The new law, adopted in early 2023, does not cover activities with virtual assets not being transferable or used for payment and/or investments, such as loyalty programs or game points or others being only used in specific virtual spaces. However, businesspersons need to demonstrate compliance with regulative normative points.
A crypto-license in Georgia is an opportunity to quickly start acting as a crypto exchange. To obtain a permit for crypto-exchange, there is no need to hire local employees and maintain an office. Since the license is issued for a Georgian company, it does not pay taxes if it does not work with Georgian companies and citizens.
Challenge Basis and Ambiguities
Usage of crypto-currencies isn’t an officially-recognized method of payments in Georgia. Taxation bodies and banking establishments view it as an non-regulated financial tool being used for significant offenses, i. e., illegal circulation of monetary means. Nevertheless, usage of crypto-currency isn’t illegal in this jurisdiction. Firms’ proprietors are widely using crypto-currency as a means to develop business-projects.
There’re plenty of certain privileges distinguishing the crypto industry from others and giving businesspersons a reason to lean towards cooperation with this jurisdiction.
- Quick organization registration and licensing.
- Possibilities to launch a progressing international market-space.
- Simple and low taxation, only on dividends – 15%.
- No minimum starting capital.
- A company registered in this jurisdiction isn’t covered by income taxes, VAT, and property tax.
- There isn’t need in presence of a local director and office.
- No accounting requirements.
Comparison with Other Countries
Let’s consider position of other countries in relation to such a phenomenon as crypto-funds. For example, Algeria, China and Ecuador banned crypto-currency. At the same time, plenty of countries see the perspective of world economic sphere in virtual currencies. Most EU countries and USA have compehensiwely-understandable regulation of crypto-market. In US, crypto-currencies are covered by Securities Commission regulations.
Georgia adopted a basic legal normative basis regarding crypto-funds, as we mentioned above. So Georgia is considered one of loyal spaces in relation to virtual currencies.
However, to work in crypto-currencies, you must get appropriate official permit. The time frame for obtaining a Georgian crypto-license may vary depending on various factors, including the completeness of application, complexity of the proposed actions and workload of National Bank. Typically, process may take several months from application date until final stage is communicated to the applicant.
Our lawyers will help you get a crypto-license in Georgia and worldwide. We’ve been working in cooperation with countries on a global level for many years. Guarantee of our expertness is high-quality results and hundreds of satisfied clients who now choose only us. We will become your reliable allies on your commercial journey.
The article’s author is Denys Chernyshov – founder and CEO of globally-famous organization Eternity Law International.