For business
KYT office
Compliance solution to monitor risks, detect sanctions and ensure AML rules.
KYT office
Compliance solution to monitor risks, detect sanctions and ensure AML rules.
AML certification
How industry players can get up-to-date knowledge and professional certification.
AML certification
How industry players can get up-to-date knowledge and professional certification.
Comprehensive transaction analytics that helps to build graphs and trace funds.
Graph
Travel rule
(soon)
For personal use
Telegram bot
Bot for checking crypto for risks, providing AML reports.
Telegram bot
Bot for checking crypto for risks, providing AML reports.
Crypto recovery
Services are focused on tracking
and recovering crypto assets.
and recovering crypto assets.
Сrypto recovery
Services are focused on tracking
and recovery crypto assets.
and recovery crypto assets.
Docs and reports
All types of documents related
to cryptocurrency.
to cryptocurrency.
Docs and reports
All types of documents related
to cryptocurrency.
to cryptocurrency.
Portfolio tracker
Information about all assets and risk assessment in one place.
Portfolio tracker
Information about all assets and risk assessment in one place.
AML checks
Сhecking wallets and transactions
for illicit funds.
for illicit funds.
AML checks
Сhecking wallets and transactions
for illicit funds.
for illicit funds.
AML-сертификация
Актуальные знания в области AML/KYT от ведущих экспертов отрасли.
AML-сертификация
Актуальные знания в области AML/KYT от ведущих экспертов отрасли.
Graph
Визуализация перемещения активов
и связей между кошельками.
и связей между кошельками.
Graph
Визуализация перемещения активов
и связей между кошельками.
и связей между кошельками.
KYT Office
Мониторинг транзакций и кошельков для вашего отдела комплаенса.
KYT Office
Мониторинг транзакций и кошельков для вашего отдела комплаенса.
Для себя
Для Бизнеса
Travel rule
(Cкоро)
Телеграм-бот
Бот для проверки кошельков и транзакций с выдачей отчётов.
Телеграм-бот
Бот для проверки кошельков и транзакций с выдачей отчётов.
Возврат средств
Услуги по отслеживанию и возврату украденных криптоактивов.
Возврат средств
Услуги по отслеживанию и возврату украденных криптоактивов.
AML-проверки
Проверка кошельков и транзакций на наличие "грязной" криптовалюты.
AML-проверки
Проверка кошельков и транзакций на наличие "грязной" криптовалюты.
Портфолио трекер
Информация о всех активах и оценка рисков в одном месте.
Портфолио трекер
Информация о всех активах и оценка рисков в одном месте.
Отчёты
Все типы документов связанные
с криптовалютой.
с криптовалютой.
Отчёты
Все типы документов связанные
с криптовалютой.
с криптовалютой.
Georgia ranks third worldwide for cryptocurrency adoption, according to several sources. Crypto is especially popular among expats and freelancers. While miners produce Bitcoin in the mountains, crypto users trade digital assets at countless street-level exchange offices. Meanwhile, the government is working with Tether on a Georgian lari-backed stablecoin.
The BitOK editorial team examined Georgia's crypto market: who regulates it, how the authorities view digital assets, what AML rules apply, how many people own crypto, where they buy it, what they spend it on, and how to establish a crypto business in the country.
The BitOK editorial team examined Georgia's crypto market: who regulates it, how the authorities view digital assets, what AML rules apply, how many people own crypto, where they buy it, what they spend it on, and how to establish a crypto business in the country.
We had a particularly good reason to take a closer look at Georgia's crypto regulations: BitOK has become a partner of the Tbilisi Finance Summit, held with the support of the National Bank of Georgia. The summit will take place in Tbilisi on October 27–28, 2026.
Contents:
- Political Climate and the Government's Position
- Regulation
- Cryptocurrency AML Regulation in Georgia
- How Many People in Georgia Own Cryptocurrency?
- Who Buys Cryptocurrency, and Why?
- Popular Cryptocurrency Exchanges
- Local Crypto Exchanges and Banks
- Cryptocurrency in Business
- How to Set Up a Crypto Company in Georgia
- What Can You Buy with Cryptocurrency in Georgia?
- Cryptocurrency in International Trade
- The Lari-Backed Stablecoin
- Cryptocurrency Mining
- Scams and Public Skepticism
- Education and Talent
- Georgia's Place in Crypto History
- Conclusions
Political Climate and the Government's Position
Political Climate and the Government's Position
The Georgian Dream party, founded by billionaire Bidzina Ivanishvili, has governed the country since 2012. The opposition and Western observers described the October 2024 parliamentary elections as rigged, and protests have continued ever since. In November 2024, Prime Minister Irakli Kobakhidze suspended EU accession talks until 2028. In December 2024, an electoral college elected former footballer Mikheil Kavelashvili as president, although the opposition did not recognize his legitimacy.
In October 2026, the Constitutional Court began considering a lawsuit brought by the ruling party to ban opposition parties. Brussels acknowledged that its policy toward Tbilisi was not working and postponed the matter until January.
Despite the political turmoil, the authorities have embraced cryptocurrency with an enthusiasm rarely seen elsewhere in the region. In May 2026, Kobakhidze and Tether CEO Paolo Ardoino jointly announced plans to launch GEL₮, a stablecoin pegged to the Georgian lari. In March, the prime minister met with Bybit CEO Ben Zhou. National Bank Governor Natia Turnava has described Georgia as a regional fintech hub connecting Europe and Asia.
At the same time, the National Bank of Georgia (NBG) is a strict regulator. In October 2025, it publicly urged citizens not to use unregistered crypto service providers. It warned about crypto Ponzi schemes in July 2026 and sharply raised capital requirements for crypto companies in September 2026.
In October 2026, the Constitutional Court began considering a lawsuit brought by the ruling party to ban opposition parties. Brussels acknowledged that its policy toward Tbilisi was not working and postponed the matter until January.
Despite the political turmoil, the authorities have embraced cryptocurrency with an enthusiasm rarely seen elsewhere in the region. In May 2026, Kobakhidze and Tether CEO Paolo Ardoino jointly announced plans to launch GEL₮, a stablecoin pegged to the Georgian lari. In March, the prime minister met with Bybit CEO Ben Zhou. National Bank Governor Natia Turnava has described Georgia as a regional fintech hub connecting Europe and Asia.
At the same time, the National Bank of Georgia (NBG) is a strict regulator. In October 2025, it publicly urged citizens not to use unregistered crypto service providers. It warned about crypto Ponzi schemes in July 2026 and sharply raised capital requirements for crypto companies in September 2026.
Regulation
Regulation
Amendments to the Law on the National Bank took effect on January 1, 2023. The regulator subsequently approved virtual asset service provider (VASP) registration rules under Order No. 94/04 on June 13, 2023. The NBG is the sole supervisory authority.
The main rules governing the market are:
The main rules governing the market are:
- Providers must register with the NBG. This is registration, not licensing, and companies are listed in a public register.
- Applicants must be Georgian legal entities with a local director and an office in the country. Operating through agents is prohibited.
- Virtual assets are not legal tender. Crypto payments are prohibited except where the NBG expressly allows them as part of VASP services.
- Banks and other supervised financial institutions may provide crypto services if their sector-specific regulations permit them to do so.
- Since January 1, 2026, each provider has been required to display its NBG registration document at its office, on its website and app, and on crypto ATMs.
The NBG's register contains 43 providers. Mycoins was the first to register, in November 2023.
Many crypto businesses operating in Georgia have offices in Tbilisi and Batumi. Some also have branches in Rustavi, Tbilisi Airport, and Sarpi, a village on the Turkish border.
Regulation tightened considerably in 2026. Stablecoin issuance rules came into force on March 6, requiring written NBG approval, full reserve backing, and at least GEL 500,000 in capital. Amendments adopted on August 26 introduced minimum capital requirements for all providers:
Many crypto businesses operating in Georgia have offices in Tbilisi and Batumi. Some also have branches in Rustavi, Tbilisi Airport, and Sarpi, a village on the Turkish border.
Regulation tightened considerably in 2026. Stablecoin issuance rules came into force on March 6, requiring written NBG approval, full reserve backing, and at least GEL 500,000 in capital. Amendments adopted on August 26 introduced minimum capital requirements for all providers:
- Exchange and transfer services, including crypto ATMs: at least GEL 150,000 (approximately $57,000).
- All other services: at least GEL 250,000.
- Operating a trading platform: at least GEL 350,000.
Existing businesses have until July 1, 2027, to meet the risk-management requirements, and until September 1, 2027, to meet the capital requirements. The register will also specify the services each provider is authorized to offer.
The tax treatment was established by a public ruling from the Ministry of Finance back in 2019:
Georgia is not an EU member, so MiCA does not apply. Instead, the authorities say they are developing a stablecoin framework aligned with the U.S. GENIUS Act.
Seven years separate the Ministry of Finance's first ruling from the introduction of capital requirements, and the toughest rules will not take full effect until 2027. Sources: National Bank of Georgia, Georgian Ministry of Finance, MONEYVAL.
The tax treatment was established by a public ruling from the Ministry of Finance back in 2019:
Category | Selling and exchanging cryptocurrency | Mining | VAT |
Individuals | 0% | 20% personal income tax | Not subject to VAT |
Companies | 15% corporate profit tax only upon distribution, plus 5% dividend tax | Same rules | Sale of mining capacity abroad is VAT-exempt |
Georgia is not an EU member, so MiCA does not apply. Instead, the authorities say they are developing a stablecoin framework aligned with the U.S. GENIUS Act.
Seven years separate the Ministry of Finance's first ruling from the introduction of capital requirements, and the toughest rules will not take full effect until 2027. Sources: National Bank of Georgia, Georgian Ministry of Finance, MONEYVAL.
Cryptocurrency AML Regulation in Georgia
Cryptocurrency AML Regulation in Georgia
Under Georgia's anti-money laundering legislation, registered crypto service providers have reporting obligations comparable to those of banks. The NBG supervises these providers, while suspicious transactions are reported to Georgia's Financial Monitoring Service.
The framework follows FATF recommendations. In its 2024 report, the Council of Europe's Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) upgraded Georgia's rating for Recommendation 15, which covers new technologies, from Partially Compliant to Largely Compliant. The NBG emphasized that only seven of the 27 countries assessed by MONEYVAL had received this rating. The United Kingdom and France have comparable ratings under the FATF system.
You can quickly check cryptocurrency for AML risks with BitOK's tools. Make security a priority whenever you handle digital assets.
What Are the AML Requirements?
Registered providers must meet the following requirements:
The framework follows FATF recommendations. In its 2024 report, the Council of Europe's Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) upgraded Georgia's rating for Recommendation 15, which covers new technologies, from Partially Compliant to Largely Compliant. The NBG emphasized that only seven of the 27 countries assessed by MONEYVAL had received this rating. The United Kingdom and France have comparable ratings under the FATF system.
You can quickly check cryptocurrency for AML risks with BitOK's tools. Make security a priority whenever you handle digital assets.
What Are the AML Requirements?
Registered providers must meet the following requirements:
- KYC: verify customers' identities and identify the beneficial owners of legal entities.
- Monitor transactions and submit suspicious transaction reports to the Financial Monitoring Service.
- Screen against sanctions lists and freeze assets when required.
- Ensure that administrators and major shareholders meet fit-and-proper standards for competence and integrity. The NBG can refuse registration based on the owners' reputations.
- From 2026, comply with requirements covering cybersecurity, business continuity, and internal risk-management systems.
Important! Banks also verify the source of funds. Without documentation from a registered virtual asset service provider (VASP), proceeds from crypto sales are extremely difficult to use to buy property or a business.
How AML Enforcement Works in Practice
How AML Enforcement Works in Practice
The NBG's oversight is strict, but only within its register. In September 2026, it fined crypto exchange Bitexchange without disclosing the amount. According to SOVA, the fine was close to GEL 600,000.
The NBG regularly reports identifying companies operating without registration, including those in free industrial zones, and refers cases to law enforcement.
The NBG regularly reports identifying companies operating without registration, including those in free industrial zones, and refers cases to law enforcement.
Sanctions have exposed the biggest loophole in Georgia's crypto regulatory system. On May 26, 2026, the United Kingdom sanctioned three Georgian companies: Arvix, Rapira Group, and Aifory. According to the British Embassy, they used crypto platforms to help Russia circumvent sanctions. Their transactions with sanctioned entities totaled at least $70 million. In July 2026, the EU added Georgian entities Eyafor and Abxex to its 21st sanctions package.
The NBG stated that none of these businesses were registered with or supervised by the bank. It had already referred information about them to law enforcement in September 2025.
The Ministry of Finance's Investigation Service found that Aifory and Arvix had been nominally registered to individuals who were paid to act as front owners. In reality, the companies operated in Moscow and had neither offices nor assets in Georgia.
This leaves the market in a contradictory position. The roughly 40 businesses on the NBG's register face close scrutiny, but forming a Georgian limited liability company is cheap and can take just one day. As a result, Georgian entities are used as legal shells for operations with no real connection to the country.
The NBG stated that none of these businesses were registered with or supervised by the bank. It had already referred information about them to law enforcement in September 2025.
The Ministry of Finance's Investigation Service found that Aifory and Arvix had been nominally registered to individuals who were paid to act as front owners. In reality, the companies operated in Moscow and had neither offices nor assets in Georgia.
This leaves the market in a contradictory position. The roughly 40 businesses on the NBG's register face close scrutiny, but forming a Georgian limited liability company is cheap and can take just one day. As a result, Georgian entities are used as legal shells for operations with no real connection to the country.
How Many People in Georgia Own Cryptocurrency?
How Many People in Georgia Own Cryptocurrency?
There is no single official figure, and estimates vary dramatically.
With a population of 3.7 million, a plausible estimate is 120,000–250,000 crypto owners. Several hundred thousand more have used or encountered crypto at least once. Chainalysis changed its methodology for the 2026 adoption index, leaving Georgia outside the overall top 20, although the firm still considers it a regional leader.
Source | Estimate |
Chainalysis, 2025 population-adjusted adoption index | Third worldwide, after Ukraine and Moldova |
Statista, as cited by Commersant | 3.4% of the population owns cryptocurrency |
Sputnik Georgia survey, as cited by Commersant | Approximately 15% of adults have used crypto for transfers or trading at least once |
With a population of 3.7 million, a plausible estimate is 120,000–250,000 crypto owners. Several hundred thousand more have used or encountered crypto at least once. Chainalysis changed its methodology for the 2026 adoption index, leaving Georgia outside the overall top 20, although the firm still considers it a regional leader.
Unlike many emerging markets, demand for crypto in Georgia is not driven by a weak banking system. According to the World Bank's 2021 Global Findex, roughly 70% of adults had an account at a financial institution, while the country's two largest banks are listed on the London Stock Exchange. Crypto operates alongside banks rather than replacing them.
Who Buys Cryptocurrency, and Why?
Who Buys Cryptocurrency, and Why?
Users fall into four broad groups:
- Expats and freelancers. Primarily people who have moved from Russia, Ukraine, and Belarus to Tbilisi or Batumi and receive payments in USDT because bank transfers between their home countries are difficult.
- Property and business buyers. They hold capital in stablecoins and convert it into lari through registered providers. According to Colliers, apartment sales in Tbilisi and Batumi exceeded $4.3 billion in 2025, while the share of Georgian buyers of newly built homes on Batumi's secondary market fell to 51% amid demand from buyers from Russia and Ukraine.
- Retail investors. Since May 2026, they have been able to buy crypto directly through the TBC banking app.
- Miners. These range from operators of industrial data centers in free zones to residents of Svaneti taking advantage of free electricity.
Cointelegraph described the local crypto culture as one built around payments rather than getting rich. Tbilisi's streets are lined with small crypto exchange shops that are essentially currency dealers with Binance accounts.
Age of Crypto Users
Age of Crypto Users
There is no representative study of users' ages. Available estimates suggest the core audience is 20–40 years old, particularly IT professionals, expats, and students.
Bybit's Apple Pay-enabled crypto cards and exchanges' university education programs are aimed at younger users.
Older generations are much less involved in the industry.
Bybit's Apple Pay-enabled crypto cards and exchanges' university education programs are aimed at younger users.
Older generations are much less involved in the industry.
Crypto and Protecting Savings
Crypto and Protecting Savings
Georgians generally do not turn to crypto as a hedge against inflation. According to the NBG, average inflation was 3.9% in 2025, while the lari strengthened to GEL 2.65 per U.S. dollar during the first half of 2026.
There is still some distrust of the national currency, but it translates into demand for dollars rather than crypto. Foreign-currency deposits accounted for 46.6% of all deposits in April 2026, down from more than half at the end of 2024. The NBG considers falling dollarization a policy success.
In this environment, stablecoins serve much the same purpose as dollar-denominated bank deposits, but without the bank. That helps explain why USDT attracts considerably more interest in Georgia than Bitcoin.
In this environment, stablecoins serve much the same purpose as dollar-denominated bank deposits, but without the bank. That helps explain why USDT attracts considerably more interest in Georgia than Bitcoin.
Popular Cryptocurrency Exchanges
Popular Cryptocurrency Exchanges
Most trading takes place on international exchanges that are not listed in the NBG register:
- Binance — the largest lari-denominated P2P marketplace, with more offers accepting payments through Bank of Georgia and TBC than any competitor. Georgian users open accounts through the exchange's offshore entity.
- OKX — known for low fees and an integrated self-custodial wallet. Its P2P market is roughly half the size of Binance's.
- Bybit — the only global exchange with Georgian VASP registration, obtained in October 2024.
Bybit has positioned Georgia as a regional hub. In late 2025, it obtained a payment service provider license. In January 2026, it launched the Bybit Card and, according to its own figures, became the country's largest issuer of crypto cards. In May 2026, Bybit Georgia began providing the infrastructure for crypto trading within the TBC banking app.
Another registered international player is WhiteBIT Georgia, which obtained registration in April 2024. Binance, meanwhile, opened a regional hub in 2023 and signed memoranda with government agency GITA and five universities, but did not register with the NBG.
Another registered international player is WhiteBIT Georgia, which obtained registration in April 2024. Binance, meanwhile, opened a regional hub in 2023 and signed memoranda with government agency GITA and five universities, but did not register with the NBG.
Local Crypto Exchanges and Banks
Local Crypto Exchanges and Banks
The NBG register lists 43 crypto companies, mostly smaller exchange businesses with offices in Tbilisi and Batumi. Notable operators include:
Company | What it is known for |
Cryptal | One of Georgia's earliest crypto exchanges. Issues TOL tokens pegged to the lari, U.S. dollar, and euro |
Coinmania and Cryptomat | Crypto ATM operators registered in 2024 |
GeCrypto | The country's largest OTC platform, operating since 2022, serving more than 10,000 clients, and offering withdrawals via SWIFT, SEPA, and ACH |
CityPay | Crypto payment gateway for retailers, registered in July 2025 |
Werty | Network of offices in Tbilisi, Rustavi, and Batumi |
Alltrust.me | The only provider with a branch at Tbilisi Airport |
What sets Georgia apart from its neighbors is the integration of crypto into mainstream banking. Since May 2026, TBC customers have been able to buy crypto assets in just three taps within the bank's regular mobile app. The selection has grown to 60 coins, and in October the bank introduced a trading promotion offering Bitcoin bonuses based on trading volume. Hash Bank received its license even earlier, in November 2023. Founded by WhiteBIT creator Volodymyr Nosov, it allows users to send crypto to other customers using a phone number.
Cryptocurrency in Business
Cryptocurrency in Business
Direct cryptocurrency payments are prohibited under the Law on the National Bank. Unlike in Serbia, however, Georgia allows an intermediary-based model. The NBG permits registered providers to send proceeds from crypto conversion to licensed payment acquirers. A retailer can therefore accept a payment through a gateway and receive lari in its bank account.
What businesses can do:
What businesses can do:
- Hold cryptocurrency on their balance sheets and pay the 15% corporate profit tax only when profits are distributed.
- Since 2026, legally issue a stablecoin after obtaining NBG approval and meeting a minimum capital requirement of GEL 500,000.
- Mine cryptocurrency in the free industrial zones of Tbilisi, Kutaisi, and Poti, which offer tax incentives.
- Settle transactions with foreign counterparties in USDT by converting funds through a registered provider.
How to Set Up a Crypto Company in Georgia
How to Set Up a Crypto Company in Georgia
Three distinct legal regimes are available to businesses, and they are often confused:
VASP registration is the only route for businesses handling customers' funds. Under the NBG's rules, the process works as follows:
Regime | Issued by | Purpose | Taxes |
VASP registration | National Bank of Georgia | Exchange, transfers, custody, trading platforms, stablecoin issuance | 15% tax upon profit distribution; 5% on dividends |
Free industrial zone (Tbilisi, Kutaisi, Poti) | Ministry of Economy | Mining and data centers | 0% corporate profit tax and VAT within the zone |
Virtual Zone status | Ministry of Finance | Export of IT services | 0% tax on profits earned from foreign clients |
VASP registration is the only route for businesses handling customers' funds. Under the NBG's rules, the process works as follows:
- Register a Georgian LLC or joint-stock company with an office in Georgia. Operating through a foreign branch or an agent is prohibited.
- Appoint an administrator who spends at least 14 days per month in Georgia, and provide proof of the company's right to use its head-office premises.
- Submit an application, business plan, AML policies, and ownership documents, and pay the GEL 5,000 application fee.
- Pass fit-and-proper checks for shareholders and management. The NBG may request additional documents and grant 30 days to remedy deficiencies.
- Meet the minimum regulatory capital requirement for your services: GEL 150,000 for exchanges and transfers, GEL 350,000 for trading platforms, and GEL 500,000 for stablecoin issuers.
The review process takes two to six months. Rejections are not unusual, and the NBG publishes refusal letters. Examples include Prime Bit's rejection in August 2025 and Kemchain's rejection in January 2026. Both companies failed to submit requested documents on time.
Compliance obligations continue after registration. Providers must report to the Financial Monitoring Service, undergo NBG inspections, and, from 2026, maintain operational and cybersecurity risk-management systems. Opening a Georgian bank account is another hurdle: banks request proof of the source of capital even before a company applies to the NBG.
The biggest change in 2026 is that Georgian registration is no longer a low-cost alternative to a European license. A street-level crypto exchange with just a few tens of thousands of lari in capital no longer meets the new requirements.
Compliance obligations continue after registration. Providers must report to the Financial Monitoring Service, undergo NBG inspections, and, from 2026, maintain operational and cybersecurity risk-management systems. Opening a Georgian bank account is another hurdle: banks request proof of the source of capital even before a company applies to the NBG.
The biggest change in 2026 is that Georgian registration is no longer a low-cost alternative to a European license. A street-level crypto exchange with just a few tens of thousands of lari in capital no longer meets the new requirements.
What Can You Buy with Cryptocurrency in Georgia?
What Can You Buy with Cryptocurrency in Georgia?
The short answer: almost nothing directly, at least officially. With intermediaries, however, you can buy almost anything.
In practice, there are several ways to do this:
In practice, there are several ways to do this:
- Visa and Mastercard crypto cards, particularly the Apple Pay-enabled Bybit Card. To merchants, these look like ordinary card payments.
- Payments through the registered CityPay gateway, with merchants receiving lari.
- Coinmania and Cryptomat crypto ATMs in Tbilisi and Batumi. Users need verified accounts to make transactions.
- Property and cars, but only after converting crypto through a provider. The buyer receives lari in a bank account, together with documents proving the source of funds, and the transaction proceeds through a notary in the usual way.
GeCrypto described a typical transaction: a buyer holding 700,000 USDT completes verification, locks in an exchange rate, and receives lari in a Georgian account that same day. The bank and notary accept the resulting documentation.
A gray market also exists, with street exchanges converting USDT into cash without registering. The NBG has warned the public against using these businesses but has not been able to shut them down.
A gray market also exists, with street exchanges converting USDT into cash without registering. The NBG has warned the public against using these businesses but has not been able to shut them down.
Cryptocurrency in International Trade
Cryptocurrency in International Trade
This is the principal lawful use case for businesses. IT exporters receive USDT from customers in the EU and United States, sell it to a registered provider, and receive lari, dollars, or euros in their company bank accounts. Large OTC desks handle multimillion-dollar transactions, locking in the rate and transferring proceeds to EU accounts through SEPA within one business day.
There is a darker side to this cross-border business model. Sanctions cases in 2026 showed that Georgian legal entities had been used to serve the Russian market, converting rubles into crypto, issuing USDT-funded virtual cards, and settling transactions with Iranian platforms.
There is a darker side to this cross-border business model. Sanctions cases in 2026 showed that Georgian legal entities had been used to serve the Russian market, converting rubles into crypto, issuing USDT-funded virtual cards, and settling transactions with Iranian platforms.
The Lari-Backed Stablecoin
The Lari-Backed Stablecoin
On May 25, 2026, Tether and the Georgian government announced plans to issue GEL₮, a token pegged one-to-one to the Georgian lari. Prime Minister Irakli Kobakhidze presented the project alongside Tether CEO Paolo Ardoino, while NBG Governor Natia Turnava described it as part of a strategy to build fintech infrastructure compatible with global standards.
What we know so far:
What we know so far:
- GEL₮ is intended as a digital version of the lari for cross-border trade, payments, and fintech products in Georgia and the wider region.
- The token will be fully backed by reserves, with independent reserve audits and a minimum of GEL 500,000 in issuer capital.
- The authorities say the stablecoin framework will align with the U.S. GENIUS Act rather than the EU's MiCA regime.
The launch date, the legal identity of the issuer, where the lari reserves will be held, and whether holders will have direct redemption rights have yet to be disclosed.
It is an unusual arrangement. GEL₮ is not a central bank digital currency: a private company will issue it, with the government acting as a partner. The NBG previously tested its own digital lari project with Ripple across five pilot use cases, but acknowledged in February 2026 that no decision had been made to issue it.
GEL₮ would not be the first lari-backed stablecoin. Georgian exchange Cryptal has issued TOL tokens pegged to the lari, dollar, and euro for several years.
It is an unusual arrangement. GEL₮ is not a central bank digital currency: a private company will issue it, with the government acting as a partner. The NBG previously tested its own digital lari project with Ripple across five pilot use cases, but acknowledged in February 2026 that no decision had been made to issue it.
GEL₮ would not be the first lari-backed stablecoin. Georgian exchange Cryptal has issued TOL tokens pegged to the lari, dollar, and euro for several years.
Cryptocurrency Mining
Cryptocurrency Mining
Georgia was an early pioneer of industrial-scale crypto mining. Bitfury opened a data center in Gori in 2014 and later acquired 18 hectares in Tbilisi's Gldani district with free-zone status.
According to GNERC energy regulator figures reported by the media, mining data centers consumed 752 million kWh in 2025, almost 80% more than a year earlier and roughly 5% of the country's total electricity. The largest consumer, AITec Solutions, operates at Bitfury's former data center in Gldani.
Svaneti has its own story. Residents have officially enjoyed free electricity for more than 20 years, and crypto miners have taken advantage of that benefit.
According to GNERC energy regulator figures reported by the media, mining data centers consumed 752 million kWh in 2025, almost 80% more than a year earlier and roughly 5% of the country's total electricity. The largest consumer, AITec Solutions, operates at Bitfury's former data center in Gldani.
Svaneti has its own story. Residents have officially enjoyed free electricity for more than 20 years, and crypto miners have taken advantage of that benefit.
In June 2026, the government announced a crackdown on illegal mining in Svaneti. Deputy Prime Minister Mamuka Mdinaradze estimated the damage to the power system at GEL 20–25 million a year. Police seized 148 mining devices in Mestia, electricity meters began to be installed across the region, and consumption above a set limit will become chargeable.
Scams and Public Skepticism
Scams and Public Skepticism
In March 2025, the Organized Crime and Corruption Reporting Project (OCCRP), Swedish public broadcaster SVT, and 30 other newsrooms published the Scam Empire investigation. A leak from the Tbilisi-based A.K. Group call center revealed that some 85 employees had extracted $35.3 million from more than 6,100 victims worldwide between May 2022 and February 2025. Operators posed as crypto experts, showed victims fake account dashboards, and prevented them from withdrawing their money. The office was located less than a kilometer from the State Security Service headquarters.
In December 2025, prosecutors detained former State Security Service chief Grigol Liluashvili, accusing him of accepting bribes to protect dozens of fraudulent call centers. Transparency International Georgia observed that his arrest followed not the exposure of the crimes but a falling-out between Liluashvili and Ivanishvili.
In July 2026, the NBG warned about companies raising money by promising returns from crypto trading, describing such arrangements as classic Ponzi schemes.
The biggest scandal of autumn 2026 involved the regulator itself. According to an investigation by Radio Free Europe/Radio Liberty, NBG board member Nana Keinishvili offered in July 2024 to protect crypto exchange Bitexchange and remove its competitors from the crypto ATM market in exchange for the founders transferring half the business to her son-in-law. The founders recorded the conversation, handed it over to the State Security Service, and left Georgia. Prosecutors opened an investigation only after journalists sought comment. On October 18, Civil.ge reported that Keinishvili had stepped down from the NBG board.
In December 2025, prosecutors detained former State Security Service chief Grigol Liluashvili, accusing him of accepting bribes to protect dozens of fraudulent call centers. Transparency International Georgia observed that his arrest followed not the exposure of the crimes but a falling-out between Liluashvili and Ivanishvili.
In July 2026, the NBG warned about companies raising money by promising returns from crypto trading, describing such arrangements as classic Ponzi schemes.
The biggest scandal of autumn 2026 involved the regulator itself. According to an investigation by Radio Free Europe/Radio Liberty, NBG board member Nana Keinishvili offered in July 2024 to protect crypto exchange Bitexchange and remove its competitors from the crypto ATM market in exchange for the founders transferring half the business to her son-in-law. The founders recorded the conversation, handed it over to the State Security Service, and left Georgia. Prosecutors opened an investigation only after journalists sought comment. On October 18, Civil.ge reported that Keinishvili had stepped down from the NBG board.
Education and Talent
Education and Talent
There are no dedicated cryptocurrency departments, but crypto is taught through fintech and IT programs:
- Since 2023, Business and Technology University (BTU) has worked under memoranda of understanding with Binance and Tether, and the head of Cryptal lectures at its Blockchain Lab.
- In 2023, Binance signed agreements with four universities: Alte University, Kutaisi International University, Georgian American University, and Caucasus University.
- Government agency GITA awards startups grants of $50,000–$60,000 twice a year and has organized a Web3 hackathon with BNB Chain.
- In 2024, Georgia hosted ZuVillage, an offshoot of the Zuzalu community supported by Ethereum co-founder Vitalik Buterin.
Georgia's Place in Crypto History
Georgia's Place in Crypto History
Georgia has made its mark on the industry twice: as a pioneer of cryptocurrency mining and as the first country to put a land registry on a blockchain.
Company or project | What it is known for |
Bitfury | Opened a data center in Gori in 2014. In 2016, it partnered with the National Agency of Public Registry and launched the world's first blockchain-based land rights registration system; approximately 1.3 million documents had been added by 2022 |
Cryptal | An early Georgian crypto exchange that issued its own lari-pegged tokens |
Hash Bank | A licensed bank offering crypto services through its app, founded by the creator of WhiteBIT |
Bybit Georgia | The exchange's regional hub, the first global platform with Georgian registration, and the country's largest crypto card issuer |
GEL₮ | Tether's proposed lari-backed stablecoin, among the first cases of a government entrusting a digital version of its currency to a private issuer |
The paradox of Georgia's crypto market is that a country of just 3.7 million people has become a testing ground for global companies developing products for an entire region, yet has produced few major homegrown blockchain innovations beyond Bitfury's infrastructure.
Conclusions
Conclusions
The country is assessed on a ten-point scale, with 10 representing the standard set by leaders such as the UAE and Switzerland.
Average score: 6/10. Georgia offers a crypto-friendly government, fast company registration, zero tax on individuals' crypto sales, and crypto trading through a mainstream banking app. The main risks lie outside the NBG register: shell companies linked to sanctions evasion, scam call centers allegedly protected by security officials, and conflicts of interest within the regulator itself.
Growth could be driven by the GEL₮ stablecoin, crypto cards, and bank-integrated crypto trading. The main obstacles are the political crisis and Georgia's reputation as a jurisdiction used to front activities taking place elsewhere.
Growth could be driven by the GEL₮ stablecoin, crypto cards, and bank-integrated crypto trading. The main obstacles are the political crisis and Georgia's reputation as a jurisdiction used to front activities taking place elsewhere.
