Obtaining a VASP license in Georgia

It is important to note that the polity does not issue a separate record officially titled a "crypto licence." Instead, the VASP licence pertains to the registration of schemes involving E-assets, as per the country's formal definition. Nevertheless, for ease of understanding, the more commonly used term "crypto licence" will continue to be used throughout this discussion.

International ordinances when obtaining a Georgian crypto license

A VASP license allows you to work according to transnational norms, simplifying interaction with clients around the world. The needs for identity verification and transaction control abide with European norms. An entrepreneur can go through the necessary stages of registration and verification faster and at a lower cost, as well as work with foreign partners, abiding with their needs without supplemental difficulties.

In addition, the polity adapts its legislation to EU needs. Obtaining a VASP license in Georgia simplifies cooperation with European firms: most norms are mutually duplicated. This contributes to the expansion of the sales market and work with reliable European partners.

The polity's participation in global AML agreements increases trust in licensed mercantiles. This opens the door to more favorable terms with transnational pecuniary institutions and the opportunity to conclude deals on a global level.

Available areas of activity when obtaining a VASP license in Georgia

A VASP (Virtual Asset Service Provider) licence in Georgia grants firms the right to engage with E-assets and E-monies legally and securely across several key areas.

Firstly, the licence enables mercantiles to operate cryptocurrency exchanges, facilitating the buying and selling of digital assets for fiat currencies such as dollars, euros, or local money. These exchanges incorporate liquidity tools, including automated market makers, and support a variety of order types. Also, licensed firms may create P2P platforms, allowing users to exchange E-monies directly without intermediaries, using methods such as bank transfers and electronic wallets. Deals are safeguarded by specialised software and technological solutions to guarantee security and ensure that terms are met.

Operations under the licence are heavily regulated. Firms must verify the identities of users, investigate the sources of funds, and record every transaction. Monitoring systems like Chainalysis or Elliptic are mandated to track deals and prevent the misuse of platforms for illegal purposes. Furthermore, extensive transaction records must be maintained and made available to the overseer upon request. Anonymity is strictly prohibited; all users must undergo comprehensive verification procedures, including conveying passports and proof of address. Compliance with these obligations begins immediately upon the licence’s issuance, and breaches can result in the licence being revoked.

A VASP licence also authorises the provision of electronic asset storage services. Firms can utilise both hot wallets, which allow for faster deals but carry a higher hacking peril due to their internet connection, and cold wallets, which offer greater security by operating offline. Enhanced security can be achieved through multi-signature solutions, requiring multiple approvals for deals. Licensees are expected to employ advanced encryption methods, such as AES-256, and sophisticated cryptography to protect client assets. Transaction monitoring systems assist in early threat detection, asserting abidance with transnational AML and KYC norms. Firms must also separate client assets from corporate funds and safeguard data through encryption and regular backups. Quarterly reports on asset status and security measures must be submitted to the Georgian overseer to uphold service reliability and protect client interests.

In addition to operational rights, a Georgian VASP licence permits firms to offer professional consultancy services in digital asset oversight and investment. Firms can develop tailored investment tactics, considering clients' goals and peril appetites, while providing market analysis and forecasts for E-monies and tokens. Licensed firms may also advise on the taxation of digital asset deals, helping clients manage and minimise tax liabilities, and offer tactics for peril oversight, including hedging and portfolio diversification. Comprehensive records of all tactics and advice is required, alongside clear disclosure of potential perils. Advice must be based on accurate, up-to-date pecuniary information about each client to ensure it is appropriately tailored.

The licence also grants firms the ability to manage clients’ investment portfolios professionally. This includes developing tactics based on market analysis using advanced platforms such as MetaTrader or Bloomberg Terminal. Firms must regularly provide extensive performance reports, outlining portfolio values, expected returns, and achieved results. Also, full disclosure of all associated fees, both internal and external, is mandatory, asserting complete openness for clients.

Moreover, with a VASP licence, firms can legally issue and place tokens, adhering to transnational norms. Full records must be prepared, describing the token’s functionality, the project’s economic model, and offering legal assurances to investors. Licensed firms are obliged to clearly explain how raised funds will be utilised and the benefits for investors, thus building trust and openness. Token placements must occur through authorised exchanges that meet stringent security norms. Each issuance is subject to thorough scrutiny by the NBG to prevent fraud and ensure supervisory abidance. Firms must submit extensive reports on the progress of token placements and development plans. Failure to meet these obligations could lead to the loss of the licence.

Overall, acquiring a VASP licence in Georgia provides a robust and regulated framework for operating across the electronic asset sector, offering opportunities to exchange, store, manage, and issue E-monies and tokens with full legal backing and transnational credibility.

Restrictions for VASP companies

The NBG has introduced stringent new ordinances for companies holding a VASP licence, with the primary aim of curbing unlawful schemes and bolstering confidence in the digital asset sector. These measures are designed to tighten the oversight of the market and promote greater trust among participants.

Licensed entities are now prohibited from engaging in deals involving electronic assets that obscure transaction details. This includes E-monies known for their high level of anonymity, such as Monero, Zcash, and Dash, as well as any techs that make it difficult to trace users or the origins of funds. Such assets present significant monitoring hurdles and are frequently exploited for money laundering and other illicit purposes. To register for a VASP licence in Georgia, firms must demonstrate full openness, overseeing comprehensive records of clients and their deals, and asserting pecuniary flows can be tracked effectively.

Furthermore, companies operating under a VASP licence are not permitted to issue loans in cryptocurrency. Due to the extreme volatility of digital assets, lending poses considerable perils to both the lender and the borrower. This ban is intended to prevent the misuse of borrowed digital funds in fraudulent schemes or unlawful trading schemes, contributing to greater market stability and reducing the threat of widespread defaults should cryptocurrency values plummet suddenly.

After securing a VASP licence, firms are restricted to collaborating only with officially registered operators and pecuniary institutions, whether based in the polity or abroad. All partners must abide with AML and KYC needs. Engaging with unregistered entities or unlicensed exchanges is strictly forbidden. Firms must rigorously vet their partners prior to any cooperation to reduce exposure to suspicious operations.

Overall, these ordinances are crafted to enhance openness and shield the digital asset market from illegal practices. They ensure mercantiles operate within a clearly defined legal framework, reducing the peril of inadvertent involvement in unlawful schemes and reinforcing their image and client trust.

Organizational forms for obtaining a VASP license in Georgia

An LLC (Limited Liability Company) is regarded as the most suitable structure for SMEs seeking a crypto licence in Georgia. In this form, participants' liability is limited strictly to their respective contributions, thus significantly reducing pecuniary exposure. Oversight arrangements are highly adaptable, permitting either the appointment of a single director or the establishment of a board. The firm charter governs the transfer of shares, and there is no statutory base requirement for authorised capital.

However, LLCs face hurdles when it comes to raising investment. They are unable to issue shares, and the transfer of ownership interests must be formalised through written agreements, making the process more cumbersome. Banks and major investors generally prefer to engage with JSCs (Joint Stock Companies) owing to their greater openness and liquidity. For mercantiles focused on large-scale initiatives or planning to issue tokens, a JSC would be more appropriate. Nevertheless, for firms seeking a straightforward and cost-effective registration to secure a crypto licence, an LLC remains the optimal choice in the polity.

Conversely, a JSC (Joint Stock Company) is the preferred structure for larger crypto enterprises looking to embark on major projects and attract significant investment in Georgia. Shareholder liability is limited to the value of their shares, and a base authorised capital of 100,000 GEL (approximately $36,000) is required, with at least 25% to be paid upon incorporation. Governance of a JSC is subject to strict ordinances, including the mandatory formation of both an oversight board and a supervisory board, asserting high levels of corporate openness—an essential feature for attracting institutional investors. The ability to trade shares freely on the open market also facilitates easier capital raising. JSCs are particularly well-suited for token issuance and collaboration with large-scale pecuniary institutions. Nonetheless, they do come with a more complex administrative structure and higher operational costs.

Regarding the legal and administrative framework for obtaining a VASP licence in Georgia, only LLCs and JSCs are eligible. Other mercantile structures, such as branches or representative offices, are prohibited from engaging in E-asset schemes.

To register for a VASP licence, a firm must maintain a physical office within the polity. This office must be exclusively dedicated to the firm's operations, adequately equipped for deals, secure document storage, and abidance with AML/KYC ordinances. Supervisory authorities have the right to inspect these premises to ensure adherence to national norms. Discovery of a fictitious office or other deficiencies will result in immediate rejection of the enrollment.

Also, firms must appoint administrators who oversee operations, with at least one administrator required to be physically present in the polity for a base of 14 days each month. This ensures rapid communication with overseers and effective supervision of the firm's schemes. Records must confirm the administrator’s presence, and any temporary absences must be promptly reported to the National Bank along with updated contact details.

Following the granting of a crypto licence, supervisory inspections continue, and any identified non-abidance may result in the suspension or revocation of the firm's authorisation.

Records for obtaining a VASP license in Georgia

To successfully obtain a VASP (Virtual Asset Service Provider) licence in Georgia, applicants must submit a range of carefully prepared documents.

The first requirement is the enrollment form (Appendix No. 1), which must contain the firm's basic information, such as its name, registration details, and contact particulars. Next, applicants must complete the list of services form (Appendix No. 2), providing an extensive overview of all schemes involving E-assets, including exchange, storage, and oversight. It is important to complete this form with precision, as it often proves problematic during the licensing process.

Appendix No. 3 demands full information about the firm's administrators, including their personal details, qualifications, and work experience. Copies of educational diplomas, course completion certificates, letters of recommendation, and any other supporting records must also be provided.

Information concerning the firm's owners must be submitted via Appendix No. 4. This includes identifying individuals who hold significant ownership stakes and the ultimate beneficial owners, thereby asserting openness of the ownership structure.

Applicants must also submit proof of office premises, which could be demonstrated through a property ownership certificate, an extract from the real estate register, or a notarised lease agreement. Any of these options is acceptable when registering for a crypto licence in Georgia.

A firm’s organisational structure must also be presented, explaining the responsibilities of each department and including plans for future growth. Furthermore, an extensive mercantile plan projecting the next three years must be prepared. This should outline the services offered, the scale of operations, the types of E-assets involved, and the security measures in place to protect them.

Internal policies relating to AML and KYC must be drafted, detailing procedures for client verification, transaction analysis, and the identification of suspicious activity. These policies must align with both FATF (Financial Action Task Force) norms and Georgian legislation.

Certificates of good conduct are required for all key company figures, such as administrators and shareholders. These documents must be issued no more than fifteen days prior to the enrollment submission; failure to abide with this timeframe will result in rejection.

Supplemental documents required for administrators include educational diplomas, certificates from specialised training courses, and professional references from previous employers or mercantile associates.

Moreover, once registered, firms must regularly review and update their AML and KYC policies to reflect the latest FATF recommendations and local supervisory needs. All amendments must be approved by the overseer to maintain oversight of pecuniary schemes and to effectively prevent suspicious operations.

Careful attention to detail, strict adherence to documentation norms, and ongoing abidance with transnational best practices are essential for successfully obtaining a VASP licence in Georgia.

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Necessities for video recording and data storage when applying for a VASP license in Georgia

To ensure comprehensive security, video surveillance must be installed both within the office premises and around its external perimeter. Cameras positioned inside the building are responsible for recording all schemes connected to customer interactions and pecuniary deals, while external cameras oversee the entrances and surrounding areas, strengthening the overall safety measures.

Recorded footage must be securely stored for a base of 30 days, a mandatory obligation for obtaining and retaining a VASP licence in the polity. It is advisable to utilise backup servers or cloud storage to safeguard the data. Supervisory authorities, or the bank itself, may request access to the recordings at any time, and firms are expected to provide them without delay.

Any malfunctions or interruptions in the surveillance system must be reported immediately to the appropriate government departments. Firms that have undergone supervisory inspections are required to repair and restore their equipment swiftly, asserting continuous and reliable operation. These protocols are vital for reducing the peril of data loss and protecting the firm from possible fines or other sanctions.

KYC measures

In the polity, anonymous deals are strictly forbidden; a client’s identity must be verified before any services are provided. For individual clients, it is essential to establish their full name, residential address, and obtain valid identification and contact details. In the case of corporate clients, firms must present their registration certificates, disclose their ownership structures, and identify their ultimate beneficial owners.

Securing and maintaining a VASP licence in Georgia needs strict adherence to AML and KYC norms. This includes employing specialised software to verify client data, monitor pecuniary deals, and detect suspicious schemes. Effective analytical tools are crucial to enhance information processing and reduce the peril of legal breaches.

Special attention must be given when deals exceed €15,000 or involve jurisdictions classified as high-peril. In such cases, a thorough examination of the origin of the client’s funds is mandatory. Furthermore, to acquire a crypto licence in Georgia, firms must implement transaction monitoring systems. These systems automatically detect and flag suspicious schemes, store transaction data, and make it available for review. Transactions involving cash, individuals from high-peril countries, and politically exposed persons are subject to particularly close scrutiny. All transaction records must be securely encrypted and retained for at least five years. If required by the overseer, firms must immediately provide access to these records.

Regarding AML and KYC procedures, mercantiles seeking a VASP licence must establish systems for categorising clients according to their peril levels. Clients from countries listed on the Financial Action Task Force’s (FATF) blacklist are subject to enhanced due diligence, including comprehensive reviews of income sources and supplemental information requests.

Every firm is obliged to formulate internal policies and procedures to ensure abidance with AML and KYC obligations. These responsibilities fall under the remit of a Compliance Officer, who must be appointed prior to the commencement of operations. This officer oversees supervisory adherence and staff training programmes.

Submission of records for registration of VASP license in Georgia and further supervision

Companies seeking a VASP licence in Georgia must submit the required records either through the online portal or by visiting the overseer’s office in person. Online submission needs applicants to register on the National Bank of Georgia (NBG) website, complete an electronic form with company details, upload digital copies of the mercantile plan and internal policies, and provide evidence of adherence to AML and KYC norms before conveying the entire package electronically.

For offline submission, applicants must prepare physical copies of all records. The enrollment form for a VASP licence can be downloaded from the overseer’s website or collected directly from the office. The full set of records must then be handed over personally.

Once an enrollment is received, the overseer carries out an initial review of the records, a process that typically takes up to ten working days. If any errors or omissions are identified, firms are given thirty calendar days to address and rectify these issues. Prompt correction is crucial, as delays can complicate the licensing process.

Following the preliminary check, the overseer examines the enrollment in detail. A decision is usually made within sixty days of receiving a properly completed enrollment. However, if necessary, the review period may be extended by up to two supplemental sixty-day terms. Successful registration of a VASP licence in Georgia is contingent on strict abidance with all relevant laws and norms.

Reasons for refusal

Firms frequently use vague terminology like "financial services" when referring to their schemes with digital assets, rather than specifying their exact area of operation. Terms like "provision of exchange services" or "storage of crypto assets" are more precise, whereas vague phrases like "operations with digital cryptocurrencies" may lead to the rejection of records. The lack of specificity can obstruct the registration process for a VASP licence in Georgia.

In some cases, entrepreneurs list virtual office addresses or premises that are not intended for actual mercantile use. This is a serious violation that can be easily uncovered during a lease or property rights verification. Such errors result in the automatic cancellation of the VASP licence registration or the revocation of an existing permit in the polity.

Another frequent issue is the absence of signed contracts with AML system providers. The overseer does not accept vague intentions to implement transaction monitoring in the future. To obtain a VASP licence, applicants must show they are ready to commence operations immediately.

The National Bank also checks whether the techs used abide with security and privacy norms. Firms are required to present evidence of integrating certified transaction monitoring software. Using unverified solutions or failing to protect client data adequately will result in the refusal of the VASP licence enrollment.

Problems often arise due to the insufficient qualifications of managers. The overseer is not favourable towards candidates lacking relevant experience, specialised education, or qualifications. It expects to see certifications in pecuniary oversight or AML control, along with diplomas and proven work experience. The higher the qualifications of the staff, especially directors and abidance officers, the smoother the process of obtaining a Georgian crypto licence will be.

Applicants frequently submit forms without detailing their sources of funding or fail to provide pecuniary records that include reserve funds. For example, they may omit information on the authorised capital. These omissions can raise suspicions with the overseer.

To avoid complications, firms must clearly outline the sources of their capital, including shareholder investments and long-term liabilities. Pecuniary records should abide with transnational norms and include reserves to cover operational perils. The absence of this information eliminates the possibility of acquiring a VASP licence in Georgia.

During the review process, the overseer often requests supplemental information. Firms that fail to respond promptly or ignore these requests peril having their enrollments rejected. For instance, a delay in conveying the KYC policy could result in the termination of the enrollment without the possibility of recovery.

The overseer also demands confirmation that counterparties are not listed on "blacklists" of jurisdictions. Failing to perform checks against databases like the OFAC list is grounds for refusal.

These issues underscore the hurdles in the Georgian VASP licence process and serve as a cautionary reminder for applicants.

Interaction with the overseer before and after registration of a VASP license in Georgia

Communication with the bank takes place through official channels - email, phone or personal meetings. All notifications, including requests for revision, are sent to the legal address of the company or the contact email specified in the enrollment.

Contact information of the NBG:

• Phone: +995 322 406 406
• Email: info@nbg.gov.ge
• Address: st. Sanapiro, 2, Tbilisi, 0114, Georgia
• Official website: www.nbg.gov.ge

The overseer has the right to request supplemental records or clarifications. For example: a description of the pecuniary model, AML/KYC abidance mechanisms or techs used. Responses to such requests must be comprehensive, otherwise you will have to respond again

Validity and renewal of VASP license in Georgia

The permit is granted for an indefinite period, which frees firms from regular renewals. However, overseeing the license needs strict supervisory norms and openness in operations.

Annual reporting

To maintain a VASP license in Georgia, firms are required to provide the NBG with the following information:

• Pecuniary records confirming the sustainability of the mercantile.
• AML/KYC Policy Updates.
• Information on changes in the oversight, shareholders and organizational structure.

The overseer checks whether the actual activity corresponds to the stated objectives, abidance with AML/KYC procedures and the absence of violations. Failure to abide with the needs or untimely submission of data may be grounds for suspension of the license.

To successfully register and maintain a VASP license in Georgia, firms must demonstrate stability, openness and abidance with all established norms.

Necessities and obligations of firms after receiving a VASP license in Georgia

The responsibilities of companies holding a VASP license in Georgia encompass areas such as accounting, AML and CFT measures, engaging with the overseer, and undergoing periodic inspections. Adherence to these needs is essential for operating legally and transparently in the digital asset market. Upon acquiring a VASP licence in Georgia, the provisions outlined in Law No. 1637-II come into effect. These ordinances are designed to promote operational openness, pecuniary stability, and alignment with transnational norms such as the International Financial Reporting Standards (IFRS).

The pecuniary records must include several key components:

• A balance sheet, detailing the firm’s assets, liabilities, and capital at the end of the reporting period, to provide a clear view of its pecuniary stability.
• A profit and loss statement, which outlines the firm's income, expenses, and pecuniary performance for the reporting year, highlighting its economic efficiency. This report is a need for all VASP-licensed entities in the polity.
• A statement of cash flows, indicating cash inflows and outflows and their utilisation across operating, investing, and financing schemes.
• Explanatory notes that clarify the firm's accounting policies, key operational changes, and other significant pecuniary details.
• A statement of changes in equity, reflecting movements in shares, dividend distributions, and alterations in the capital structure, which are important for corporate governance.

In terms of reporting deadlines, firms must submit their annual pecuniary reports by 30 June of the year following the end of the reporting period after receiving their VASP licence. Also, any requested information must be provided within five business days upon request. Typically, the overseer may ask for data on cash flows, operations, capital structure, and other information to verify abidance with internal controls and ordinances.

The overseer also needs advance notification if there are delays in conveying reports. In the case of unforeseen circumstances, such as technical issues or data access problems, firms must provide evidence and a recovery plan. Non-abidance with these needs can result in penalties or the suspension of the firm's crypto licence.

Companies holding a VASP licence in Georgia must also abide with IFRS norms, including the segregation of customer assets from the firm’s own funds. These assets must be reflected in separate balance sheets, and deals involving them must be clearly outlined. Reports should accurately reflect income and expenditure, verify customer obligations, and ensure abidance with AML/KYC ordinances. Moreover, firms must maintain proper control mechanisms and utilise technology to safeguard data and deals.

Mandatory audit

According to the Law on Accounting, Reporting and Auditing, enterprises with a VASP license in Georgia undergo mandatory audit if they meet 2 criteria:

• The value of the assets exceeds 50 million lari ( more than 18.5 million US dollars ).
• Annual income is more than 100 million lari ( over 37 million US dollars).
• The average number of employees exceeds 250 people.

Firms that do not meet both criteria are exempt from mandatory audit.

Firms exempt from mandatory audit must regularly provide evidence of their pecuniary stability, including simplified reporting forms reflecting key performance indicators. Obtaining a VASP license in Georgia is possible only if there are internal control systems, which the overseer checks during scheduled inspections.

Supplemental reporting needs

The NBG may request supplemental information, including:

AML/KYC abidance reports containing information on completed customer checks, sources of funds and identified suspicious deals.

Documentation of abidance with internal controls that demonstrate the implementation of peril oversight policies, including actions to prevent fraud.

Technology Infrastructure Reports with information on the data protection measures applied, the encryption systems used and backup copies.

Checks

After registration of VASP licenses in Georgia, firms are under constant supervision of the bank. Scheduled inspections are conducted annually to assess the conformance of firms with the established needs. In addition, the overseer may initiate unscheduled inspections in case of violations or claims. These inspections cover the analysis of pecuniary records, assessment of peril oversight procedures, abidance with AML/CFT norms and the correctness of customer identification under KYC procedures. The National Bank pays special attention to the abidance of the IT infrastructure with security norms and the accuracy of data on suspicious deals.

Unscheduled inspections can be initiated not only in case of claims, but also at the request of transnational overseers with whom the National Bank cooperates to prevent pecuniary crimes. Firms are required to provide access to their records and infrastructure during all working hours. Registration of a crypto license in Georgia implies openness and full abidance with AML/CFT norms.

Taxation after registration of VASP license in Georgia

Crypto assets exchanged for either national or foreign currency are not subject to VAT. This exemption applies to deals involving the transfer of ownership of crypto assets. However, services related to the provision of computing power are liable for VAT if the recipient is registered in Georgia or has a permanent establishment within the country. In contrast, VAT is not applied to services provided to non-residents.

For legal entities, the CIT rate is 15%, but it is only applicable to distributed profits. Reinvesting profits can help reduce the overall tax burden. Crypto firms have the opportunity to become residents of the polity’s Free Industrial Zone, where they can benefit from a 0% CIT rate on qualified profits.

The withholding tax (WHT) rates for non-residents in Georgia are as follows: 5% on dividends, interest, and royalties. However, if payments for interest, royalties, or other income are made to non-residents registered in jurisdictions considered to have preferential taxation (such as the Bahamas, Bermuda, Seychelles, the Virgin Islands, or other offshore areas), the WHT rate is increased to 15%. For countries with which the polity has a double taxation avoidance agreement, different WHT rates may apply. For example, residents of Armenia are subject to a 5% or 10% WHT rate on dividends, and 10% or 5% on interest and royalties, depending on the specific conditions of the agreement.

Procedure for cancellation of VASP license in Georgia

The revocation of a registered crypto license in Georgia is regulated by NBG and is applied in cases of serious or repeated violations by E-asset operators. Firms are given a chance to fix the problems, but if they do not take the necessary actions, they are removed from the registry.

Grounds for license revocation

The NBG may revoke a VASP license and prohibit re- registration for the following reasons:

• Systematic failure to abide with AML/CFT or KYC procedures, including failure to identify customers or inadequate internal controls.
• Providing false or incomplete information upon registration or during regular monitoring.
• Refusal to provide the overseer with requested data or records necessary to confirm abidance with the norms.

Another reason for revoking a license may be a threat to the firm's schemes, the stability of the pecuniary sector or its image. By registering a VASP license in Georgia, firms agree to abide with all NBG rules. We strongly recommend that you familiarize yourself with the full list.

Cancellation process

The overseer provides the firm with a notice indicating the identified inconsistencies, the timeframe for their elimination and the possible consequences. If the problems are not eliminated within the specified period, the cancellation process continues. The National Bank excludes the firm from the VASP register and the license becomes invalid.

If a license is revoked, firms may face serious legal consequences, including fines and damages obligations. The overseer forwards information about violations to the competent authorities, which may lead to supplemental inspections and litigation. A ban on re- obtaining a VASP license in Georgia is also possible.

Legal implications

Firms whose licences have been revoked must promptly halt all operations involving E-assets, including the exchange, storage, or oversight of client assets. They are also required to inform their clients and partners about the suspension of schemes. Also, they must prepare comprehensive pecuniary records and submit them to the overseer for evaluation of any potential violations. Failure to meet these obligations could lead to further penalties or even criminal charges against the firm's oversight. Businesses looking to obtain a VASP licence in Georgia should be aware of the stringent needs for operating in the country, the importance of overseeing a strong image, and the overseer's thorough approach.

Special cases of cancellation

The overseer can revoke a license in the shortest possible time if a firm violates the ban on the use of anonymous assets or interaction with unregistered suppliers. It reacts extremely negatively to firms that do not conduct actual schemes for a long time. And, of course, tough sanctions are applied to firms that threaten the stability of the pecuniary sector or raise suspicions of participation in illegal schemes. If you value a formal VASP license in Georgia, do not allow such violations.

Conclusion

Obtaining a VASP licence in Georgia grants mercantiles legal recognition, tax benefits, and the opportunity to access global markets. For successful registration, firms must adhere to AML and CFT ordinances, submit the necessary records, and operate transparently. Failure to meet these needs can result in penalties and the potential loss of the licence.

By securing a VASP licence in Georgia, firms enjoy a favourable tax regime, including a 5% corporate tax rate and the absence of VAT on cryptocurrency asset exchanges. Also, the process is streamlined, and mercantiles benefit from the transnational credibility of the polity’s AML/CFT norms.