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

Georgia doesn’t ban cryptocurrency. But if you think you can run a Bitcoin ATM or trade crypto through an unlicensed platform in Georgia, you’re about to get a very expensive lesson. In 2025, the rules are clear, enforced, and non-negotiable. The Georgia banking restrictions on cryptocurrency transactions aren’t about stopping innovation-they’re about making sure only those who play by the rules can operate.

It’s Not Illegal to Own Crypto-But It’s Illegal to Move It Without a License

You can buy, hold, and sell Bitcoin, Ethereum, or any other crypto in Georgia without breaking the law. The government doesn’t treat crypto as money, but it does recognize it as property. That means you can trade it, use it for payments, and even mine it. But here’s the catch: if you’re moving crypto from one person to another-whether through an exchange, a wallet service, or a Bitcoin ATM-you need a license.

The law that changed everything is the Virtual Asset Service Provider (VASP) registration law, which took effect on July 1, 2023. It’s not a suggestion. It’s a legal requirement. Any company or individual offering services like crypto trading, custody, or ATM operations must register with the National Bank of Georgia (NBG). No exceptions. Not even if you’re just helping a friend send Bitcoin.

In January 2025, two companies got a wake-up call: Bullet Blockchain, Inc. and Blockchain Technology Machines, Inc. (doing business as RocketBTM). They were running Bitcoin ATMs that let users deposit cash and send crypto to third-party wallets. No license. No warning. Just a cease and desist order that took effect immediately. These weren’t shady operations-they were visible, public kiosks. And Georgia shut them down.

What Counts as a Money Transmitter Under Georgia Law?

Georgia’s definition of a money transmitter is broad. If you’re transmitting value-including virtual currency-you’re regulated. That includes:

• Bitcoin ATMs that allow deposits into external wallets
• Crypto exchanges operating within Georgia
• Wallet providers that hold crypto on behalf of users
• Any platform that facilitates peer-to-peer crypto transfers for a fee

The key phrase in the law is “transmitting money or monetary value.” It doesn’t matter if you’re using blockchain technology, smart contracts, or paper receipts. If you’re moving value from one party to another, you need a money transmitter license under O.C.G.A. § 7-1-681(b).

There are narrow exemptions-for example, if you’re just buying crypto for yourself or transferring funds between your own wallets-but those don’t apply to businesses. If you’re charging a fee, offering service to the public, or holding custody of someone else’s crypto, you’re in the regulated space.

The Licensing Process: It’s Not Easy, But It’s Transparent

Getting licensed isn’t a formality. It’s a full audit. The National Bank of Georgia requires applicants to submit:

• Proof of financial stability (minimum capital reserves)
• Detailed business plans and operational procedures
• Background checks on all owners and senior managers
• A fully documented AML/CFT compliance program
• Proof of cybersecurity and data protection measures

The Financial Monitoring Service (FMS), under the NBG, reviews everything. They look at how you identify users, how you report suspicious activity, and how you store transaction records. You can’t just copy a template from the internet. Your system must be tailored to your business and able to withstand scrutiny.

The process takes weeks, sometimes months. But the NBG publishes clear guidelines on their website. Deputy Commissioner Rod Carnes is the point of contact for licensing questions. There’s no secret path. No backdoor. Just paperwork, compliance, and patience.

Why Georgia’s Crypto Tax Policy Is a Double-Edged Sword

Georgia has one of the most attractive crypto tax regimes in the world: 0% tax on individual cryptocurrency transactions. If you buy Bitcoin in 2025 and sell it for a profit next year, you pay nothing to the government. That’s a huge draw for investors and traders.

But here’s the flip side: companies pay 15% corporate tax on distributed profits. So while you, as a private user, get to keep every dollar you make, a crypto exchange or wallet provider operating in Georgia has to hand over a chunk of its earnings to the state.

This isn’t a contradiction-it’s strategy. Georgia wants to attract individual users and miners (thanks to low electricity costs), but it also wants to collect revenue from the businesses that enable the ecosystem. The government currently holds 66 BTC, valued at over $6.8 million, as part of its reserve strategy. That’s not a secret. It’s a signal: they’re serious about crypto, and they’re playing the long game.

By 2025, Georgia expects 153,000 residents to be using crypto regularly. That’s 14.13% of the population. Market revenue is projected at $1.9 million. These aren’t guesses-they’re projections based on real adoption trends and regulatory clarity.

AML/CFT Rules Are Tighter Than Ever

Every licensed crypto business in Georgia must have a working anti-money laundering and counter-terrorist financing system. That means:

• Collecting full KYC data: name, address, ID, proof of residence
• Verifying identities using government-issued documents
• Monitoring transactions for unusual patterns
• Reporting suspicious activity to the Financial Monitoring Service within 24 hours

The NBG updated these rules in August 2023, and they’ve only gotten stricter since. The IMF praised Georgia’s AML/CFT framework in March 2024, calling it “robust” and “aligned with international standards.” That’s not empty praise-it means foreign banks and payment processors are more likely to work with Georgian crypto firms.

If your system fails an audit, you lose your license. No second chances. No grace period. That’s why so many startups are hiring compliance officers before they even launch their first product.

What’s Next? Digital Assets and the 2026 Deadline

Georgia isn’t done. By 2026, the government plans to fully integrate digital assets into its broader AML/CFT framework. That means tokenized securities, CBDC pilots, and possibly even regulated stablecoins could be coming.

The NBG is already reviewing applications for new digital asset platforms. They’re not blocking innovation-they’re building a safe runway for it. The goal isn’t to be the biggest crypto hub in the world. It’s to be the most trustworthy one.

If you’re thinking of launching a crypto business in Georgia, don’t wait. The window for operating without a license is closed. The regulators are watching. The penalties are immediate. And the path to compliance? It’s well-marked, publicly available, and waiting for you.

What Happens If You Ignore the Rules?

You don’t get a warning. You don’t get a fine. You get shut down.

The cease and desist orders issued in January 2025 didn’t give companies time to appeal. They were effective immediately. Assets were frozen. Operations halted. Employees laid off. Customers lost access to their funds.

There’s no appeal process for unlicensed operators. The law doesn’t care if you thought you were “just helping people.” If you’re transmitting value without a license, you’re breaking the law-and Georgia’s regulators have zero tolerance.

Bottom Line: Play by the Rules or Get Out

Georgia offers one of the cleanest, most predictable crypto environments in Eastern Europe. Low taxes for users. Clear rules for businesses. Strong enforcement. International credibility.

But it’s not a free-for-all. The banking restrictions aren’t meant to scare people away. They’re meant to keep the system honest. If you’re serious about crypto in Georgia, get licensed. Do the work. Build the compliance. Follow the law.

The alternative isn’t just risky-it’s over.