As of 2025, Georgia continues to maintain its status as one of the regional centers of crypto activity. The digital asset market here demonstrates steady growth, driven by both public interest in alternative investments and the country’s geographic position between Europe and Asia.

"Georgia is transforming from a free-regime crypto territory into a mature, regulated hub. Free industrial zones, cheap energy, and transparent licensing create unique conditions for scaling fintech projects. We have already gone through the path of legalization and we see: the market is maturing, trust is growing, and opportunities are only expanding", - says Giorgi Avetisov, CEO of the fintech company AllTrust.me.

Rising Popularity of Cryptocurrencies

According to various sources, data on the prevalence of cryptocurrency usage in Georgia varies. According to a survey conducted by Sputnik agency, about 15% of the adult population of Georgia has used cryptocurrency for transfers or trading at least once. On the other hand, according to Statista, the ownership rate of cryptocurrency among adults in Georgia is about 3.4%.

Notably, the country ranks in the top 10 globally for ease of access to cryptocurrency mining, thanks to affordable electricity and favorable regulation.

One of the key factors contributing to the growth of the crypto industry in Georgia is the presence of Free Industrial Zones (FIZs) in cities like Kutaisi and Poti, offering tax incentives for blockchain companies. Companies registered in FIZs may be exempt from VAT, corporate tax, and dividend tax, making the country attractive for international crypto projects.

In addition, the country's infrastructure is actively developing: Georgia has a large number of crypto ATMs, most of which are located in Tbilisi, as well as in Batumi, Rustavi, and Kutaisi. This facilitates public access to digital assets and promotes their everyday use.

On the Regulatory Environment

Until 2023, Georgia remained one of the most liberal countries regarding cryptocurrency in Eastern Europe. However, starting in 2024, the country began transitioning to a regulated model.

First, exchange operators are now required to register with the National Bank of Georgia.

Second, they are subject to strict requirements for implementing AML (anti-money laundering) and KYC (know your customer) procedures.

Third, operating without the appropriate license is officially considered a violation of the law.

"That’s why Georgia is taking a confident step toward European standards: the implementation of PSD2, CRD, and VASP is forming a transparent market with clear rules. For businesses, it signals stability; for users, it guarantees security. Unlicensed exchanges are becoming a thing of the past: the market is clearing up, and licensed players are gaining space for growth", emphasizes Giorgi Avetisov, CEO of fintech company AllTrust.me. 

All these changes are part of a comprehensive strategy to align with the legal framework of the European Union. In particular, the country is implementing the provisions of three key European directives:

  • PSD2 – strengthens user verification requirements for crypto transactions.
  • CRD – establishes capital adequacy and sustainability standards for license applicants.
  • VASP – regulates crypto service provider responsibilities and introduces mechanisms for monitoring suspicious transactions.

According to Economy Minister Levan Davitashvili, adapting these directives is essential to create a transparent and safe environment and protect both users and the country's financial system from shadow operations.

About Offline Exchanges Today

Against the backdrop of growing demand for stablecoins and fast conversions between fiat and crypto, a network of crypto exchanges continues to operate actively in the country. This market is divided into two segments:

Licensed – officially registered, verified, and cooperating with banks.

Unlicensed – despite the clear regulatory framework, these still operate in the market. They work via Telegram channels or offline points, offering services without proper client verification. Using such services carries several risks:

  • Lack of consumer protection.
  • Higher risk of fraud.
  • Violation of the law, potentially leading to fines or criminal liability.

State authorities actively combat such structures by conducting inspections and suspending their activities. In January 2025, many unlicensed exchanges in Tbilisi and Batumi were ordered to cease operations.

Therefore, when choosing an exchange in Georgia, it is recommended to always check whether the operator is licensed and to avoid services offering anonymous operations without verification.

On the Prospects

Georgia is striving to synchronize with EU legal standards, including AMLD and MiCA. The country is also considering introducing a digital version of the national currency – the digital lari (CBDC). The National Bank of Georgia is preparing to launch a test version of the digital lari, which could open new opportunities for financial innovation and enhance the efficiency of payment systems.

Moreover, the country aims to attract major global crypto industry players. For example, the world's largest crypto exchange Binance is considering opening a regional office in Georgia, pending the introduction of a licensing regime.

Georgia's crypto market is vibrant, active, and rapidly evolving. Today, Georgia can rightfully be considered the fintech hub of the region.