Features of Regulation of the crypto industry in Georgia

Georgia is a favorable and liberal country for cryptocurrency-related financial activities. This is due to the short period of obtaining a permit, the absence of requirements for the size of the authorized capital, and low taxation. Therefore, many investors choose this particular jurisdiction for their crypto business. Georgia crypto license is a good solution for companies that want to work in this jurisdiction and far beyond it.

General information

For licensing, you first need to create an organization (register) on the territory of the FIZ. PPE provides preferential taxes and other acceptable conditions. There are no requirements for the company's authorized capital, but developing and submitting your business project is still necessary.

The crypto industry is controlled during this period, but no direct regulation exists. An individual engaged in crypto activities does not need to obtain a license, but a commercial organization requires licensing to conduct business within the framework of the law.

Although there are no regulatory regulations to regulate activities in this country, the state authorities have a positive attitude toward the blockchain system. They are actively engaged in its implementation for various types of activities.

Obtaining a permit provides an opportunity to legally offer services related to virtual currency: creating vaults, implementing transactions, and so on. You can get a permit in a month if you draw up all the required documents correctly.

The main benefits of licensing

Due to significant advantages, this country is an attractive jurisdiction for the crypto business. Let's take a look at these benefits.

Favorable environment

This country is one of the most loyal in the world about business with crypto activities. Thanks to inexpensive electricity, mining is actively developing, and crypto ATMs have been introduced. Every month, about 1.6 million USD transactions are carried out in Georgia. Taxation for transactions is low, the legal framework is flexible, and if all requirements are met, it is easy to obtain a permit.

Short permit period

You can quickly register an organization in the country and then go through licensing. The process can be completed in up to one month, significantly less than in other countries where licensing can take up to six months or more. This advantage will save you time and allow you to start crypto activities earlier.

No residency requirements

A citizen of any state can open a crypto business in the country. It is also possible not to have an actual office space (provide a legal address) and do business online. It significantly saves the cost of maintaining a virtual office.

Tax policy

PPE provides many advantages to registered organizations:

• corporate tax 15%;
• no income tax;
• no VAT;
• no property tax.

This approach reduces the overall tax costs, making the business even more attractive for potential crypto organizations.

Permitting

The process of obtaining a crypto permit consists of the following several steps. People have to do a preliminary collection of necessary papers, including identity cards of shareholders and management of the company, business projects, documentary evidence of capital, and copies of paid utility bills from shareholders and management.

The next stage is organization registration. An application for non-registration is submitted along with corporate documents. The formation of accounting activities is underway.

Permitting includes filing an application for licensing along with a package of documents. Then it is necessary to pay state fees and provide communications with the country's National Bank to obtain a license. You need to open a bank account.

Main requirements during the licensing period

Consider the main conditions for obtaining a license in Georgia:

• provide copies of the identity cards of all shareholders and management of the company;
• draw up a detailed business project;
• document the source of your capital;
• implement AML (money laundering prevention) and KYC (know the customer) requirements;
• appoint two managers with appropriate qualifications and work experience, and one of them must have Georgian citizenship;
• provide descriptions of software, considering the requirements for compliance with software security.

These are the main (but not exhaustive) conditions required for licensing. This country is the most cost-effective jurisdiction for conducting crypto activities.