When a crypto business operates in VASP licensing in Georgia, a regulatory framework that requires crypto service providers to register with Georgian authorities to prevent money laundering and protect users. This is not optional—it’s the legal baseline for any exchange, wallet provider, or trading platform serving customers in the country. Unlike places where crypto operates in a gray zone, Georgia has built a clear, rules-based system. It’s one of the few countries in Eastern Europe that treats crypto as a serious financial sector, not a fringe experiment.
Every VASP, a Virtual Asset Service Provider, defined as any entity that facilitates crypto trading, custody, or transfers. Also known as crypto intermediary, it must submit detailed documentation to the Financial Monitoring Service of Georgia. This includes business structure, ownership info, anti-money laundering (AML) policies, and proof of technical security. Many applicants fail because they treat this like a formality—instead, Georgia demands proof of real operational controls, not just paperwork. The Travel Rule, a global AML standard requiring VASPs to share sender and receiver data for transactions over $1,000. Also known as FATF Recommendation 16, it’s enforced strictly in Georgia, with penalties for non-compliance including fines and license revocation. If your platform doesn’t have systems to collect and transmit this data automatically, you won’t pass inspection.
Georgia’s approach is practical. It doesn’t ban crypto—it regulates it. That’s why companies from Turkey, Russia, and beyond set up operations there. But don’t assume it’s easy. The process takes months. You need local legal representation, a physical office, and a clear audit trail. The country doesn’t want speculative startups. It wants serious players who can prove they’re not just another offshore shell.
What you’ll find in the posts below are real examples of how crypto firms handle compliance—whether it’s the UK’s stricter FCA rules, the EU’s MiCA deadlines, or how some platforms still try to bypass geo-restrictions. Georgia’s model is a middle ground: not as tight as the U.S., not as loose as some offshore havens. If you’re thinking about launching a crypto business in the region, this is the playbook you need to study.
Georgia allows crypto ownership and offers 0% tax for individuals, but requires strict VASP licensing for any service moving digital assets. Enforcement is active, with unlicensed Bitcoin ATMs shut down in 2025. Compliance is non-negotiable.
