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 rules are strict, and enforcement is real.

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

You can buy, hold, and trade Bitcoin, Ethereum, or any other cryptocurrency in Georgia without breaking the law. The government doesn’t treat it as legal tender, but it doesn’t outlaw it either. That’s the first thing to understand. The restriction isn’t on ownership-it’s on transmission.

Under O.C.G.A. § 7-1-681(b), anyone who moves money or monetary value-including virtual currency-must be licensed as a money transmitter. This includes crypto exchanges, wallet providers, and yes, even Bitcoin ATM operators. If you’re letting someone deposit cash into a machine that sends crypto to a third-party wallet, you’re transmitting value. And that triggers the license requirement.

It’s not a gray area. In January 2025, the Georgia Department of Banking and Finance issued cease and desist orders against two companies: Bullet Blockchain, Inc. and Blockchain Technology Machines, Inc. (doing business as RocketBTM). Both were running Bitcoin ATMs without licenses. The orders took effect immediately. No warnings. No grace period. Just shut down.

What’s the VASP License, and Why Does It Matter?

The key to operating legally in Georgia is the Virtual Asset Service Provider (VASP) registration, which became mandatory on July 1, 2023. This isn’t just a formality-it’s a full compliance system.

To get licensed, you need to submit detailed documentation to the National Bank of Georgia (NBG). That includes:

• Names and backgrounds of all beneficial owners
• Organizational structure and management team
• Financial statements and funding sources
• A full Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) compliance plan

The Financial Monitoring Service (FMS), under the NBG, reviews every application. They’re not just checking boxes-they’re evaluating whether your systems can actually detect suspicious activity. If your KYC (Know Your Customer) process is weak, or if you don’t log transaction data properly, your application gets rejected.

There’s no shortcut. Even if you’re a small operator, you’re held to the same standard as a large exchange. The NBG doesn’t make exceptions based on size.

Crypto ATMs Are a Major Enforcement Target

Bitcoin ATMs are one of the most common ways people interact with crypto in Georgia. But they’re also one of the easiest ways to bypass oversight-unless you’re licensed.

Here’s how the rule works: If your ATM allows users to deposit cash and send crypto to wallets they don’t control (like an exchange or personal wallet), you’re transmitting value. That means you need a money transmitter license. If the ATM only lets users buy crypto with a card tied to their own account and doesn’t let them send it out, you might qualify for an exemption. But most commercial kiosks don’t fit that narrow exception.

The January 2025 crackdown on Bullet Blockchain and RocketBTM sent a clear message: the state is watching. If you’re operating without a license, you’re not just at risk of fines-you’re at risk of being shut down overnight.

Individuals Pay 0% Tax. Businesses Pay 15%.

Georgia’s strategy isn’t about shutting crypto down-it’s about attracting it. And they’re doing it smartly.

For individuals, crypto transactions are completely tax-free. Buy Bitcoin? No capital gains tax. Sell Ethereum? No income tax. Trade altcoins? Zero. That’s one of the most aggressive tax policies in the world for retail users.

But for businesses? It’s different. Companies that profit from crypto services pay a 15% corporate tax on distributed profits. This creates a revenue stream for the government while still keeping the door open for startups and entrepreneurs.

It’s a balance: make it easy for users, make it fair for businesses. The government currently holds 66 BTC (worth about $6.86 million as of late 2025) and expects around 153,000 users-roughly 14.13% of the population-to be actively using crypto by the end of 2025. Market revenue is projected to hit $1.9 million.

Compliance Isn’t Optional-It’s Built Into the System

Georgia’s system isn’t just about paperwork. It’s about traceability.

All licensed VASPs must:

• Verify user identities with government-issued ID
• Keep records of all transactions for at least five years
• Report any suspicious activity to the Financial Monitoring Service
• Use secure, auditable digital wallet infrastructure

The NBG requires that platforms collect data on transaction origins, destinations, and amounts. This isn’t surveillance for its own sake-it’s to prevent fraud, ransomware payments, and illicit transfers. The IMF praised Georgia’s AML/CFT upgrades in March 2024, calling them “strong” and “aligned with global standards.”

That international validation matters. It means banks and payment processors abroad are more likely to work with Georgian crypto firms. It also means Georgia is less likely to be blacklisted by global financial watchdogs.

What’s Next? Digital Assets in 2026

Georgia isn’t stopping at Bitcoin and Ethereum. The NBG is actively reviewing applications to integrate other digital assets into the financial system. That could include tokenized securities, CBDC pilots, or stablecoins tied to the Georgian lari.

By 2026, the country plans to fully embed digital assets into its AML/CFT framework. That means even more reporting requirements, tighter controls, and likely new licensing categories for different types of digital assets.

For businesses, this means planning ahead. If you’re thinking of launching a crypto service in Georgia, don’t wait until 2026 to get compliant. The rules are already in place. The enforcement is already happening.

Who to Contact If You’re Trying to Get Licensed

If you’re a business owner or developer looking to operate legally in Georgia, the first step is to reach out to the Georgia Department of Banking and Finance. Rod Carnes, Deputy Commissioner for Non-Depository Financial Institutions, is the main contact for licensing inquiries.

The department’s website has detailed guidance on money transmitter licensure for virtual currency kiosk operators. Don’t guess. Don’t assume. Read the official rules. The penalties for non-compliance are swift and severe.

Bottom Line: Georgia Is Crypto-Friendly-But Only If You Play by the Rules

Georgia isn’t the Wild West. It’s not a tax haven with no oversight. It’s a carefully designed ecosystem: low taxes for users, clear rules for businesses, and zero tolerance for unlicensed operators.

If you’re an individual holding crypto? You’re fine. No reporting, no taxes, no hassle.

If you’re building a service that moves crypto? You need a license. Period.

The state isn’t trying to stop innovation. It’s trying to make sure innovation doesn’t become a loophole for crime. And so far, it’s working.

Georgia’s approach is simple: if you want to play in crypto, you play by the rules. There’s no middle ground. And for those who follow them, the rewards are real.