Paying to Employees in Cryptocurrency

Since 2020, Georgia has maintained a leading position in attracting crypto investments. This was made possible by favorable conditions: affordable electricity for mining and the absence of strict legal restrictions on digital asset operations.

However, the situation began to shift in the fall of 2022, when the country passed its first cryptocurrency law, establishing basic tax regulations for miners and crypto investors.

As of September 1, 2023, Georgia has implemented a local version of the European VASP (Virtual Asset Service Provider) regulation. The law does not prohibit cryptocurrency circulation but ensures greater transparency in the operations of exchanges and investment companies. All organizations are required to monitor transactions and report suspicious activity related to money laundering or terrorism financing to regulatory authorities.

Cryptocurrency remains popular among investors. The National Bank of Georgia is actively promoting the launch of the "Digital Lari" — a blockchain-based CBDC (central bank digital currency).
This reflects the country’s intention to integrate cryptocurrencies into its financial system.

Free Industrial Zones (FIZs), located in Tbilisi, Kutaisi, and Poti, continue to expand, offering favorable conditions for mining centers and crypto exchanges.

Free Industrial Zones are special territories where companies can obtain a crypto license with advantageous taxation and minimal regulation.

Currently, FIZs offer opportunities for:

• integration and use of acquiring systems for fiat operations;
• issuance of digital currencies officially recognized as a means of payment within the FIZ;
• execution of transactions using both traditional and digital currencies.

Crypto ATMs have been installed in these cities, allowing users to exchange cryptocurrency. However, large transactions require mandatory identity verification, including a passport or residence permit.

For individuals, cryptocurrency transactions are subject to tax only if the income is generated within Georgia. Legal entities and miners pay taxes on a regular basis:

• VAT is not applied when selling computing power to non-residents;
• VAT applies if computing power is purchased from non-residents or transactions occur between residents;
• Income tax is 10% of net profit.

As of May 2025, cryptocurrencies are not recognized as official legal tender, but their use is fully permitted for both residents and non-residents. Crypto can be exchanged through:

• crypto ATMs;
• licensed exchange offices;
• cryptocurrency exchanges.

GeCrypto continues to offer cryptocurrency-to-cash exchange services in Tbilisi, having received its official VASP license in March 2024, ensuring favorable conditions and minimal bureaucratic hurdles for clients.