In Georgia, you’re a VASP if you handle crypto for other people. The National Bank of Georgia (NBG) follows FATF standards, so the rules are familiar to global players.

You are a VASP if you

Run a crypto-to-fiat or fiat-to-crypto exchange
Provide custodial wallets (you control the keys)
Facilitate trades between third parties
Manage or safeguard client crypto

You are not a VASP if you

Trade your own Bitcoin or Ether
Mine or stake coins for yourself
Use crypto internally for payroll or treasury

That last point is key. Paying your team in crypto doesn’t make you a VASP — if you do it right.

Who Must Register

Some activities always trigger registration.

A Georgian exchange where users swap Bitcoin for GEL? Needs a license.A wallet startup holding client keys? Needs a license.A brokerage matching buyers and sellers? Needs a license.Even a payment processor handling crypto for merchants might need one.

Registering with the NBG means:

Passing background checks
Keeping a local office and staff
Building AML/KYC systems
Filing regular compliance reports

It’s doable. But it’s work. And if you don’t need it, why bother?

Who Does Not Need VASP Registration

Plenty of crypto activity in Georgia is outside the licensing net.

Individuals trading for themselves
Miners and stakers running their own rigs
Businesses using crypto internally

And yes, that includes payroll.

Picture this:A Berlin Web3 startup wants to pay Georgian developers in Bitcoin. Direct crypto payments won’t fly: salaries must be in GEL to count as legal payroll.

But with Gegidze, the company sends Bitcoin, it’s converted at just 1.2–1.5%, and developers get GEL salaries with proper tax withholding. Employees pay only 5% tax, contractors just 1%.

No license needed. No headaches.

Compliance If You Do Register

If you do cross into VASP territory, expect to play by the rules.

That means:

AML and KYC checks for all clients
Monitoring transactions and reporting suspicious ones
Paperwork for large transfers
A responsible officer in Georgia
Regular reports to the National Bank

It’s lighter than the EU or US. But it still adds overhead. Which is why so many foreign companies structure themselves to avoid registration altogether.

How Foreign Companies Skip Licensing

Most crypto companies setting up in Georgia don’t need a license. Their activity is internal, not client-facing.

Paying developers in crypto? Internal.Managing reserves in stablecoins? Internal.Running mining farms in a Free Industrial Zone? Internal.

And if you want to be sure, you route everything through Gegidze.

They:

Convert crypto to GEL
Onboard employees and contractors
File payroll taxes
Handle AML/KYC in the background

Your company never touches the licensing process. Yet your team still gets paid legally, fast, and at the lowest possible tax rates.

Industry Use Cases

Web3 startups raise in crypto, pay devs globally. With Gegidze, no license needed.

DAOs struggle with legal recognition. With Gegidze, contributors get GEL salaries, contracts, and tax records.

iGaming companies process crypto from players abroad. They can stay under “export of services” rules and let Gegidze handle payroll.

Mining farms set up in Free Industrial Zones. They enjoy zero corporate tax and duty-free imports. For payroll? Gegidze again.

Why Gegidze Beats Licensing

Gegidze is the shortcut.

Payroll in GEL, fully compliant
Employees taxed at 5%
Contractors at 1%
AML/KYC handled
Exchange rates kept low

You get the benefits of Georgia’s crypto-friendly tax system without the burden of running a licensed financial service.

What Happens If You Get It Wrong?

Georgia is crypto-friendly, yes. But friendly doesn’t mean careless.Mess up payroll, skip tax filings, or pretend you don’t need VASP registration when you do — and it can sting.

Unlicensed activity can attract fines and make banks shut the door on you.
Paying salaries directly in Bitcoin without GEL conversion? The tax office won’t recognize it. Your “salary” becomes an undocumented transfer, with back taxes and penalties waiting.
Assuming company registration = tax perks. Wrong. Virtual Zone and International Company Status don’t come automatically. You have to apply and maintain compliance.
Misclassifying workers. Labeling a full-time employee as a contractor may save money upfront, but if the Revenue Service reclassifies them, you owe backdated payroll taxes and possible legal damages.

This is why companies plug into Gegidze’s system. Every worker is classified properly from day one. Salaries flow through GEL. Taxes are filed. No surprises.

Compliance Strategies That Actually Work

So how do crypto companies in Georgia stay safe, fast, and legal without drowning in paperwork? A few proven strategies:

Keep payroll internal, not client-facing. Paying your own staff is not a VASP service. With Gegidze as your EOR, payroll stays internal, but compliant.
Use a compliant intermediary for conversions. Instead of touching a VASP license, let Gegidze handle conversion at 1.2–1.5%. Your crypto becomes GEL, and your payroll stays legal.
Apply for the right tax regime. Virtual Zone (0% corporate tax on foreign IT revenue). International Company (5% corporate tax, 0% dividend tax, 5% salary tax). Free Industrial Zone (0% corporate tax, 0% VAT, no import duties). Each is designed for a specific type of crypto business.
Document everything. Georgian banks and regulators like records. Gegidze keeps contracts, invoices, and payroll slips tidy so you don’t have to.

Georgia vs. EU vs. US: A Quick Comparison

Feature	Georgia	European Union	United States
VASP Licensing Burden	Only for exchanges & custodians	Mandatory for most crypto businesses	Varies by state; often strict
Corporate Tax Rate	0% (Virtual Zone), 5% dividends	19–30%, depending on country	~21% federal + state taxes
AML Requirements	Light-touch, focused on real VASPs	Heavy AML/KYC for all regulated entities	Intense federal + state AML rules
Setup Speed	1–2 days company registration	Weeks to months, licensing delays	Weeks to months, high legal costs

Why do crypto founders keep moving operations to Tbilisi, Kutaisi, or Batumi instead of Berlin, Paris, or New York? Because Georgia lets them breathe.

In the EU:

VASP registration is heavy and slow.
AML/KYC reporting is exhaustive.
Corporate tax often 20–30%.
Payroll taxes crush small teams.

In the US:

Licenses vary by state.
Some states ban certain crypto services outright.
Federal scrutiny is intense.
Legal costs skyrocket before you even launch.

In Georgia:

Only real exchanges and custodians need a VASP license.
Internal use of crypto (like payroll) does not.
Corporate tax deferred until distribution.
Employees pay 5%. Contractors pay 1%.
Banks open accounts in days.

It’s not just easier. It’s smarter.

Industry Spotlight

Web3 Startups

Raising capital in ETH? No problem. Pay your dev team in Georgia with 5% employee tax or 1% contractor tax. Keep your focus on building, while Gegidze files all payroll reports.

DAOs

Pseudonymous contributors are hard to pay legally. With Gegidze, you pay in crypto, and contributors get GEL salaries, contracts, and recognized income for visas or mortgages.

iGaming Platforms

Crypto in, fiat out — and no VAT on foreign player revenue. Payroll structured with Gegidze keeps your operation tax-efficient and far from VASP obligations.

Mining Operations

Set up in a Free Industrial Zone, import rigs tax-free, and run on competitive power rates. For payroll, Gegidze again. No VASP license needed.

Key Takeaways

VASP registration in Georgia is only mandatory if you run exchanges, custodial wallets, or client-facing platforms.
Internal crypto use, like payroll or treasury, does not require a license.
Mistakes — like paying salaries directly in Bitcoin or misclassifying workers, can lead to fines and back taxes.
Tax perks like Virtual Zone, International Company, and Free Industrial Zones can slash your effective rate to near zero, but they require proper applications.
Gegidze handles it all: payroll, taxes, banking, and compliance, without you ever touching a VASP license.

Why Gegidze Is the Smart Choice

Crypto in Georgia is simple on paper. But in practice, things can get messy fast. Banks freeze transfers. The tax office asks why salaries weren’t in GEL. Workers get misclassified. Suddenly, your “crypto-friendly” expansion looks like a compliance nightmare.

This is exactly why companies partner with Gegidze.

Payroll done right: Employees onboarded under Employer of Record, taxed at only 5%. Contractors registered as Individual Entrepreneurs, taxed at 1%.
Legal payments: Salaries settled in GEL, keeping you compliant with labor and tax law.
Crypto-to-fiat conversion: Smooth exchanges at just 1.2–1.5%. Lower costs, faster payouts.
Compliance guaranteed: AML, KYC, and reporting handled so your company stays off regulators’ radar.
Global reach: Pay Web3 teams, DAOs, iGaming operators, or miners anywhere, with a Georgian legal backbone.

With Gegidze, you don’t need to wrestle with licensing headaches. You keep the tax perks, your team gets paid, and your business scales without friction.

Georgia has become a rare safe haven for crypto businesses: clear laws, light-touch regulation, and tax rates that global founders dream of. But success here depends on getting the details right.

Do you actually need VASP registration? Or can your company operate legally without one?

That’s the difference between wasting months on licensing and running lean from day one.

Book a consultation with Gegidze today.We’ll assess your model, handle compliance, and set up payroll so you can pay your team in crypto legally, tax-efficiently, and without the headaches.