In a fast‑digitalizing economy, cryptocurrencies are increasingly shaping global finance, creating new revenue streams for businesses and redefining cross‑border value transfer. Thus, Georgia, like many other countries, has taken significant steps to keep pace with these transformations. To support this development, a flexible regulatory framework was essential, one that also ensures strong compliance with AML/CFT standards. By introducing a regulatory framework for Virtual Asset Service Providers (VASPs), Georgia has created clear rules of the road that both strengthen market integrity and open the door for responsible innovation, enabling companies to contribute to the country’s evolving economy. This article represents the framework of crypto in Georgia and the opportunities for companies to be a part of this transformation.
Georgian laws define “Virtual Asset” in the following manner:
“A digital representation of value that is fungible and not unique, and is subject to transfer or trade in digital form, and is used for investment and/or for making payments. However, virtual assets do not include the digital representation of funds, securities, or other financial instruments.”
Therefore, the person who carries out virtual asset services is defined as virtual asset service provider (VASP). The virtual asset services include:
- Convertible virtual asset exchange (including via self-service kiosks) into national or foreign currency, another virtual asset, or a financial instrument;
- Transfer of a convertible virtual asset;
- Safekeeping/administration of a convertible virtual asset or of a tool required for its use, which enables control over the virtual asset;
- Management of a portfolio composed of convertible virtual assets (excluding collective portfolio management);
- Administration of a trading platform for convertible virtual assets;
- Lending of a convertible virtual asset;
- Initial offering of a convertible virtual asset and/or services related to an initial offering.
Accordingly, any company seeking to carry out virtual asset services must be registered with the National Bank of Georgia (NBG). Moreover, VASP should be a legal entity established and registered under Georgian law (a limited liability company or a joint-stock company), which, after being registered by NBG as a VASP, is authorized to provide virtual asset services in Georgia. It is prohibited for any person to provide virtual asset services if they are not registered by NBG.
Submission of Application by VASP
VASP must apply the NBG by submitting variety of documents such as: completed VASP registration form, list of all virtual asset services to be provided, plan and description of how each service will operate end‑to‑end, information on each administrator including identity document copies, criminal record certificates, education and work, statement of any equity holdings that administrators/significant/beneficial owners have in other NBG‑supervised entities. Applicants also need to submit information on all direct/indirect significant shareholders and beneficial owners, and information about corporate records and fees, as well as the electronic system used to provide VASP services, information about business capacity and organization, AML/CFT compliance,e and implementation scheme details.
Review by NBG
Should the documentation provided by the applicant fail to meet the stipulated requirements, NBG will grant 30 (thirty) calendar days for rectifying the deficiencies and/or clarifying the submitted data. NBG will render a decision on the registration or refusal to register the VASP within 60 (sixty) calendar days of receiving the relevant registration information/documentation. This timeframe may be paused if NBG requests additional information and/or documentation from the applicant and is subsequently resumed upon the receipt of the pertinent response from the applicant.
If the application is approved, the NBG issues an individual administrative-legal document containing the decision on the registration of the applicant as a VASP. This document will include the name, identification number, registration number, date of registration, classification as VASP, and details of the relevant virtual asset services of the VASP.
Georgia’s approach to regulating crypto assets reflects a deliberate balance between innovation and regulatory oversight. By establishing a clear legal definition of virtual assets, introducing a mandatory registration regime for VASPs, and placing supervision under NBG, the country has created a predictable and compliance-driven environment for market participants. This framework not only enhances transparency and AML/CFT compliance but also positions Georgia as an attractive jurisdiction for companies seeking to operate responsibly in the virtual asset sector. As digital finance continues to evolve, Georgia’s regulatory model provides a solid foundation for sustainable growth and long-term market confidence.