Crypto-to-fiat Exchange

Cryptocurrency has become a full-fledged financial instrument for cross-border payments and investments. More and more people are holding part of their capital in USDT, Bitcoin, or Ethereum. And eventually face the same question: how to safely and legally withdraw crypto to a bank account in Georgia.

Since 2023, Georgia has implemented official regulations for VASP companies (Virtual Asset Service Providers) licensed by the National Bank of Georgia (NBG) to exchange cryptocurrencies. Thanks to this framework, Georgia is now one of the few jurisdictions where converting crypto to fiat is possible without the risk of account freezes or compliance issues with banks.

This guide explains how the process works, which methods are available, and what to avoid.

Georgia’s banking system is considered one of the most stable in the region. However, like most countries, local banks maintain a cautious approach to cryptocurrency-related transactions.

Bank of Georgia (BoG), TBC Bank, and Credo Bank do not prohibit crypto-linked transfers, but they closely monitor the source of funds. If the bank cannot clearly verify where the money originated, the transaction will be flagged for compliance review.

The most common issue arises when a client receives a transfer from P2P platforms or private individuals. In such cases, the bank sees funds arriving from an “unidentified sender” and may freeze the account until the situation is clarified. Sometimes, these funds later turn out to be connected to fraud or stolen assets, putting the account holder under investigation.

That’s why the legality and transparency of the source is the key factor when withdrawing crypto in Georgia. If the transfer comes from a licensed VASP (for example, GeCrypto), the banks process it smoothly, they see a verified counterparty operating within NBG regulations.

Today, there are several legitimate methods to convert crypto to fiat in Georgia, each with its own benefits and limitations.

The safest and most compliant method is to use officially licensed crypto exchange providers, registered with the National Bank of Georgia. These companies follow strict AML/KYC procedures, ensuring that every transaction is legally verified.

As of 2025, licensed VASPs in Georgia, such as GeCrypto, offer two main formats:
Offline exchange with cash payout. Client receives fiat directly in the office and can later deposit it into a bank account;


● Non-cash (bank transfer) exchange. Client’s fiat funds are credited directly to a bank account after offline verification and signing the necessary documents.

Both options are completely legal and suitable for everything from private investments to large corporate transactions.

Offline Exchange with Cash Payout

This is the traditional method preferred by private clients and investors who want to receive fiat in cash.

How it works:

1. The client visits the exchange office.
2. Passes basic KYC verification.
3. Transfers cryptocurrency (e.g., USDT, BTC, ETH).
4. Receives fiat currency (USD) and an official receipt confirming the transaction.
5. Optionally deposits the cash to a personal bank account or via an ATM.

Key advantage: simplicity and transparency. The transaction is fast, documented, and the bank sees that the money originates from a legitimate, licensed source.

Non-Cash Exchange with Bank Transfer

This format is popular among verified clients and corporate users who prefer direct, paperless transactions.

How it works:

1. The client visits the exchange office for initial offline verification (KYC).
2. Signs a service agreement specifying transaction conditions and compliance obligations.
3. Transfers cryptocurrency to the designated wallet address.
4. Receives fiat (USD or GEL) directly to a Georgian bank account.
5. Both parties sign an official acceptance certificate, confirming the transaction.
6. After this initial verification, the client is added to the internal whitelist and can later perform remote exchanges without visiting the office again.

GeCrypto supports both formats: cash and non-cash. After completing the first in-person verification, clients can conduct further exchanges remotely, while receiving full documentation for accounting or tax purposes.

Large global exchanges such as Binance, ByBit, and OKX also offer bank withdrawals, but the process is not always smooth. Transfers often go through intermediaries or offshore banks, and funds might arrive from foreign accounts, which increases the risk of compliance checks or temporary freezes.

In addition, major exchanges usually limit transaction volumes and apply strict compliance screening, which makes them inconvenient for large or regular payouts.

The most common yet riskiest method. On P2P marketplaces, crypto is exchanged directly between individuals, that means the fiat transfer comes from a private person, not a licensed business.

If that sender’s funds are later found to be suspicious, you could become part of the flagged transaction chain. This may lead to account suspension, police questioning, or even tax audits.

That’s why P2P methods are not recommended for large transfers or recurring payments.

Account freezes usually occur when the source of funds is unclear. To minimize risks, follow these guidelines:

● Avoid P2P and “gray” exchanges. Banks view personal transfers as suspicious, even if your funds are legitimate.

● Keep documentation. Save receipts, contracts, and transaction screenshots. They prove the legality of your exchange.

● Work only with licensed providers. Transfers from companies licensed by the National Bank of Georgia (such as GeCrypto) are fully compliant and accepted by banks.

● Avoid artificial splitting of payments. Dividing one large transaction into many smaller ones may trigger additional compliance checks.

For a detailed overview of how Georgian banks handle crypto transactions, read our related article: Can Georgian Banks Block Accounts for Crypto Transactions? (BoG, TBC, Credo)

Georgia is one of the world’s most crypto-friendly jurisdictions in terms of taxation.

Here’s how it works:

● Individuals who are Georgian tax residents pay no tax on crypto gains, including capital appreciation.

● Companies and individual entrepreneurs (IEs) pay 15% corporate tax, but only when profits are distributed (for example, as dividends).

● VAT does not apply to cryptocurrency transactions.

This means that when you convert crypto through a licensed service and deposit fiat to your account, no additional taxes or penalties apply. For a detailed breakdown, read our guide: Cryptocurrency Taxation in Georgia and Worldwide 2025

Legally withdrawing cryptocurrency to a Georgian bank account is straightforward as long as you follow one simple rule: work only with licensed exchange providers.

The most reliable way is to convert crypto to cash through an official exchange office, obtain a receipt, and then deposit funds into your bank account.

For verified clients, GeCrypto also offers a convenient alternative: non-cash exchange with a direct transfer to your bank card: fast, secure, and fully compliant with Georgian law.

Georgia remains one of the few countries where crypto transactions can be conducted transparently, safely, and without fear of account freezes or penalties. The key is choosing a trusted partner that operates legally and ensures full transparency at every stage of the transaction.

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