Is cryptocurrency legal in Georgia?

Georgia Cryptocurrency Laws

Regulation of Digital Currencies: Cryptocurrency, Bitcoins, Blockchain Technology

Georgia is among one of the top cryptocurrency countries in the world; it does not have any legislative restrictions for crypto exchange and, to date, does not require any license for such activity.[1] Also, Georgia provides a high tax certainty and beneficial tax system for businesses involved in the crypto field. It has been estimated by the World Bank in 2018 that at least 200,000 people in Georgia are involved in currency mining.[2]

The significant influence of this sector on the country’s economy has led to the fact that on June 28, 2019, the Minister of Finance of Georgia, Nodar Khaduri, signed a bill on taxation of crypto currency.[3]  The bill includes the following:

  • individuals in Georgia are exempt from income tax on any profit received from the sale of crypto currency;
  • the sale of the crypto currency or its exchange for Lari or other currency is not subject to VAT (applies to transactions between legal entities and individuals);
  • The sale of computing power (hash) from Georgia abroad is not subject to VAT. In addition, individuals and legal entities retain the right to input VAT;
  • The sale of computing power (hash) within the territory of Georgia (between residents) is subject to VAT;
  • a hash purchase by a Georgian resident abroad is subject to VAT.

Is cryptocurrency legal in Georgia?

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[1] Gela Barshovi, Insight: Taxation of Cryptocurrency in Georgia, Bloomberg, (Dec. 16, 2019), https://news.bloombergtax.com/daily-tax-report-international/insight-taxation-of-cryptocurrency-in-georgia.

[2] Irina Lopatina, Georgia: Features of Taxation of Crypto Currency in Georgia in 2020, Mondaq, (April 06, 2020), https://www.mondaq.com/fin-tech/912924/features-of-taxation-of-crypto-currency-in-georgia-in-2020.

[3] Id.