Georgia Banking Restrictions on Cryptocurrency Transactions: What You Need to Know in 2025

Georgia doesn’t ban cryptocurrency. But if you’re running a crypto business or even operating a Bitcoin ATM there, you’d better have the right paperwork-because the banking restrictions are strict, and they’re being enforced.

It’s Legal to Own Crypto, But Not to Move It Without a License

You can buy, hold, and trade Bitcoin or Ethereum in Georgia without breaking any laws. The government doesn’t treat crypto as legal tender, but it doesn’t outlaw it either. What’s illegal is moving money-digital or otherwise-without a license. That’s the core of Georgia’s banking restriction on cryptocurrency transactions.

Since July 1, 2023, anyone offering crypto services-exchanges, wallet providers, kiosks, even peer-to-peer platforms that facilitate transfers-must register as a Virtual Asset Service Provider (VASP) a regulated entity required to comply with anti-money laundering and counter-terrorist financing rules under Georgia’s Resolution No. 94/04. This isn’t a suggestion. It’s a legal requirement enforced by the National Bank of Georgia (NBG) the central regulatory authority overseeing all financial services, including cryptocurrency, in Georgia.

Before 2025, some operators slipped through the cracks. Not anymore. On January 16, 2025, the Georgia Department of Banking and Finance the state agency responsible for enforcing money transmitter laws and monitoring non-depository financial institutions issued cease-and-desist orders to two companies: Bullet Blockchain, Inc. a company operating unlicensed Bitcoin ATMs in Georgia that was ordered to stop all operations and Blockchain Technology Machines, Inc. d/b/a RocketBTM a Bitcoin ATM operator found to be facilitating third-party wallet deposits without a license. Their operations shut down immediately. No warnings. No grace period.

What Counts as a Money Transmitter in Georgia?

The law doesn’t just target big exchanges. It covers anyone who moves value-even if they’re not holding the crypto themselves. If you run a Bitcoin ATM that lets someone deposit cash and send it to a wallet they control, you’re transmitting money. That means you need a money transmitter license a state-issued permit required to legally operate as a financial intermediary for digital assets in Georgia under O.C.G.A. § 7-1-681(b).

There are narrow exemptions-for example, if you’re only facilitating transfers between your own accounts or acting as an agent for a licensed provider. But if you’re letting strangers send crypto to wallets they own, you’re in the money transmitter category. And you need to apply.

The application isn’t simple. You’ll need to submit detailed documentation on:

• Who owns and controls your business (beneficial owners)
• Your management team and their backgrounds
• Your financial statements and capital reserves
• Your AML/CFT compliance system a documented set of procedures to detect, report, and prevent money laundering and terrorist financing activities
• Your KYC (Know Your Customer) procedures for verifying users

The Financial Monitoring Service (FMS) Georgia’s unit responsible for enforcing AML/CFT regulations under the authority of the National Bank of Georgia reviews every application. They’re looking for real systems-not templates. If your compliance plan looks copied from a website, it gets rejected.

0% Tax for Individuals, 15% for Companies

Georgia isn’t trying to scare people away. In fact, it’s trying to attract them.

Individuals pay 0% tax on crypto gains. No capital gains tax. No income tax on trading. That’s one of the most aggressive tax incentives in the world. It’s why Georgia projects over 153,000 crypto users by 2025-roughly 14% of its population.

But businesses? They pay 15% corporate tax on distributed profits. That’s lower than most European countries, but it’s a clear signal: the government wants you to operate here, but it also wants its share. They’re not just letting crypto grow-they’re building a revenue stream from it.

The government even holds 66 BTC a reserve of Bitcoin held by the Georgian government as of 2025, valued at approximately $6.86 million-a symbolic move that shows confidence in the asset class. The projected market revenue from crypto in Georgia by 2025? $1.9 million. That’s not huge globally, but for a small country, it’s a strategic win.

Why the Crackdown? AML and International Reputation

Georgia’s push for strict rules isn’t about controlling innovation. It’s about survival.

In 2024, the International Monetary Fund (IMF) a global financial institution that endorsed Georgia’s upgraded AML/CFT framework as a model for emerging crypto economies publicly praised Georgia’s anti-money laundering reforms. That’s rare. Most countries get flagged for weak controls. Georgia got a pat on the back.

Why does that matter? Because if Georgia wants foreign crypto firms to set up shop, international banks need to trust its system. If a Georgian crypto exchange is linked to a money laundering case in Germany or the U.S., those banks will cut ties-not just with the exchange, but with the whole country.

That’s why every licensed VASP must report suspicious activity. Every user must be verified. Every transaction trail must be documented. The NBG isn’t just collecting data-they’re building a transparent ledger of crypto activity to protect Georgia’s financial reputation.

What’s Coming in 2026?

Georgia isn’t done. The next phase is full digital asset integration the planned 2026 expansion of Georgia’s AML/CFT framework to include all types of digital assets, including tokens and NFTs.

By 2026, the rules will cover more than just Bitcoin and Ethereum. Stablecoins, utility tokens, even non-fungible tokens (NFTs) used for payments could fall under VASP regulation. The NBG is already reviewing applications for new digital asset platforms. This isn’t a freeze-it’s a roadmap.

What does that mean for you? If you’re planning to launch a crypto service in Georgia, don’t wait. The rules are clear now. They’re going to get broader soon. The window to get licensed under the current framework is closing.

Who to Contact If You’re Trying to Get Licensed

If you’re serious about operating legally in Georgia, start with Rod Carnes Deputy Commissioner for Non-Depository Financial Institutions at the Georgia Department of Banking and Finance, the primary contact for VASP licensing inquiries. He’s the point person for licensing and enforcement. The department’s website has detailed guidance on what documents you need, how long the review takes (typically 60-90 days), and what happens if your application is denied.

Don’t try to guess. Don’t hire a lawyer who’s never dealt with crypto regulation in Georgia. This isn’t a generic compliance checklist. It’s a country-specific system built on real enforcement cases and IMF-backed standards.

What Happens If You Ignore the Rules?

Two things: your business shuts down, and you could face fines or criminal charges.

The cease-and-desist orders against Bullet Blockchain and RocketBTM weren’t just letters. They were legal orders with immediate effect. Operating after the order is a violation of state law. The NBG can freeze assets, seize equipment, and refer cases to prosecutors.

And here’s the kicker: if you’re a foreign company running a crypto service into Georgia without a license, you’re still in violation. The law applies to anyone serving Georgian residents-even if you’re based in the U.S. or Estonia.

Georgia isn’t playing games. They’ve built a system that rewards compliance and punishes evasion. If you want to operate here, you play by their rules.

Is Georgia Still a Crypto-Friendly Country?

Yes-but only if you’re compliant.

Georgia offers low taxes, cheap electricity for mining, and a clear regulatory path. It’s one of the few places where you can legally trade crypto without paying personal taxes. But it’s not a free-for-all. The freedom comes with structure.

Compare it to a restaurant: you can serve great food, but you need a health permit. Georgia’s giving you the recipe, the kitchen, and the tax break. But if you skip the permit? You’re out.

If you’re a crypto entrepreneur, Georgia is still one of the best places to build. Just don’t skip the paperwork. The banks aren’t stopping crypto. They’re just making sure it doesn’t stop them.