Crypto Mining in Georgia: Regulations and Licensing Explained

Georgia has become one of the most surprising hotspots for cryptocurrency mining in the world - not because of cheap coal or massive data centers, but because of something simpler: clear rules and zero taxes for individuals. If you’re thinking about setting up a mining rig in 2025, Georgia might be the easiest place to do it legally - if you know where to look.

Is crypto mining legal in Georgia?

Yes. Completely. No gray areas. No sudden bans. No hidden crackdowns. Since 2023, Georgia has made it official: cryptocurrency mining is legal for both individuals and businesses. The government doesn’t just tolerate it - it actively encourages it. The National Bank of Georgia (NBG) oversees everything, but instead of shutting down miners, they’ve built a system to bring them in safely.

What makes this different from places like China or Kazakhstan? Georgia treats crypto as personal property, not money. That means if you mine Bitcoin or Ethereum and sell it later, you don’t pay income tax on the profit - as long as you’re an individual. No reporting. No paperwork. Just mine and keep what you earn.

Who needs a license? Individuals vs. Companies

This is where most people get confused. You don’t need a license to mine crypto as a hobbyist. If you’ve got a few rigs in your garage in Tbilisi or a small farm in Svaneti running off hydro power, you’re fine. No registration. No fees. No audits.

But if you’re running a business - even if it’s just two people and ten ASICs - things change. Commercial mining operations must register as a legal entity under Georgia’s standard business laws. That means incorporating a company, getting a tax ID, opening a bank account. Simple. Standard. Not crypto-specific.

The real catch comes when your business starts handling digital assets beyond just mining. If you’re storing coins for clients, running a wallet service, or trading crypto on behalf of others, then you fall under the Virtual Asset Service Provider (VASP) law. That’s when you need a license from the National Bank of Georgia.

The VASP License: What It Covers

The VASP license, introduced in July 2023, isn’t about mining. It’s about custody, exchange, and transfer of digital assets. So if you’re mining and keeping the coins yourself? You don’t need it. But if you’re offering custody services to clients or running a crypto exchange platform? Then you absolutely do.

To get a VASP license, you need to:

• Register a local company in Georgia
• Submit a detailed business plan and risk assessment
• Pass a background check for owners and key staff
• Implement full AML/CFT procedures (Know Your Customer, transaction monitoring)
• Pay a one-time application fee (around $2,000-$5,000 depending on scope)
• Renew annually with updated compliance reports

The process takes 4-8 weeks. The NBG doesn’t rush it, but they also don’t make it impossible. Companies like Bitfury and CoreWeave have already gone through it.

The Tbilisi Free Zone (FIZ) Alternative

If you’re a business looking to avoid the full VASP requirements, there’s another path: the Tbilisi Free Zone (FIZ). Think of it as Georgia’s offshore crypto sandbox.

The FIZ license doesn’t require AML/CFT compliance for mining-only operations. You still need to register your company in the zone, but you get:

• 0% corporate income tax
• 0% VAT on services
• No currency controls
• No requirement to report mining income

It’s cheaper, faster, and simpler - but only if your operation stays strictly within mining. If you start trading or holding client funds, the FIZ license won’t protect you. The NBG still has authority to investigate if suspicious activity is detected.

Energy Costs and Why Georgia Wins

Georgian miners don’t just win on paperwork - they win on power. The country generates over 90% of its electricity from renewable sources, mostly hydroelectric dams in the mountains. And because of low domestic demand, excess power is sold cheaply.

Crypto mining uses about 2% of Georgia’s total electricity - a tiny fraction compared to the U.S. or China, where mining can hit 10-15% of regional usage. That’s why the government isn’t scared of energy overload. In fact, they see mining as a way to use surplus power that would otherwise go to waste.

Add in Georgia’s cool mountain climate, and you don’t need expensive cooling systems. A mining farm in Kazbegi runs cooler than one in Texas - and costs half as much to run.

Compliance Risks and What to Watch For

Even with a friendly system, Georgia isn’t a lawless zone. The Financial Monitoring Service (FMS) watches for suspicious activity. If your company suddenly starts moving millions in crypto without clear sources, they’ll ask questions. If you’re using fake addresses or shell companies, you’ll get flagged.

The NBG also requires all licensed entities to report large transactions and maintain records for five years. This isn’t about spying - it’s about stopping money laundering. The IMF pushed Georgia hard on this in 2024, and the government responded by tightening reporting rules.

The biggest mistake new miners make? Thinking “no tax” means “no rules.” It doesn’t. You still need to keep records. You still need to avoid suspicious transfers. You still need to know where your coins came from.

Where to Set Up: Tbilisi, Kutaisi, or the Mountains?

Your location matters more than you think.

• Tbilisi: Best for companies needing banking access, legal help, and IT support. Most VASP licenses are processed here.
• Kutaisi: Growing industrial zone with cheap land, good internet, and government incentives for tech businesses. Great for medium-scale mining farms.
• Mountain regions (Svaneti, Kazbegi, Mestia): Ideal for small to mid-size miners. Low-cost or free electricity from hydro plants. But poor internet and no local support. You’ll need satellite links and remote monitoring.

Most serious operators start in Kutaisi or Tbilisi. Solo miners often begin in the mountains - but they usually move to the city once they scale up.

What’s Next? The 2026 Deadline

The VASP framework isn’t finished. By the end of 2026, all digital asset platforms in Georgia - including mining companies that handle client assets - must be fully compliant with international AML standards. The NBG is working with the FATF to align Georgia’s rules with global norms.

That means:

• More reporting requirements
• Stricter identity checks
• Blockchain transaction tracing

If you’re starting now, you’re ahead of the curve. But if you wait until 2026 to get compliant, you might miss the window.

Is Georgia Right for You?

Here’s a quick checklist:

• You’re an individual miner? Go for it. No license. No tax. Just mine.
• You’re a business mining only? Register your company. Use the FIZ license if you want tax-free status.
• You’re offering wallet or exchange services? Get the VASP license. No shortcuts.
• You care about energy cost? Georgia is among the cheapest in the world.
• You need legal stability? Georgia’s rules have been steady since 2023 - no reversals.

If you’re looking for a place to mine crypto without bureaucracy, taxes, or fear of sudden crackdowns - Georgia is one of the few countries that delivers.