Cryptocurrency is a relatively new phenomenon in Georgia, and the question of its legality remains ambiguous. In 2019, the Georgian Parliament passed the Law on currency, which defines the concepts of electronic currency, virtual currency, and cryptocurrency. According to this law, cryptocurrencies are not considered legal tender in Georgia, but their ownership and use are not prohibited.
Georgia was one of the first countries in the world to introduce a tax regime for cryptocurrency transactions. Under the current legislation, income from cryptocurrency operations is subject to a 5% tax. Taxes on mining and exchanging cryptocurrencies for fiat money were also introduced. However, despite taxation, cryptocurrency continues to be popular in Georgia.
Legislative regulation of cryptocurrency in Georgia continues to evolve, and the Government plans to tighten control over cryptocurrency operations. In early 2021, the National Bank of Georgia initiated the creation of a regulatory framework for cryptocurrency operations. The idea of creating Georgian cryptocurrency has also been proposed, which could serve as a new tool to attract investments into the country's economy.