Crypto Mining in Georgia: Regulations and Licensing Explained

Crypto mining in Georgia is legal - and it’s getting easier

Georgia doesn’t just allow crypto mining. It’s actively inviting it. As of 2025, the country is one of the top 10 mining hubs in the world, accounting for about 5% of global hash power. That’s up from less than 1% in 2019. Why? Because Georgia made mining simple, cheap, and legal - without the red tape that chokes operations elsewhere.

Who can mine? Individuals and businesses both benefit

If you’re an individual miner running a few rigs in your garage, Georgia treats you like a hobbyist. No taxes on mining profits. No registration. No paperwork. You keep every bitcoin or ether you mine. That’s rare. Most countries tax crypto as income or capital gains. Georgia doesn’t. For personal miners, it’s the closest thing to a free pass.

For businesses, it’s different - but still straightforward. You don’t need a special mining license. You don’t need to apply to the National Bank of Georgia just to run servers. But if your business handles crypto transactions, exchanges, wallets, or acts as a service provider for others, then you fall under the VASP (Virtual Asset Service Provider) rules. That’s the only real licensing requirement.

The two paths to legal operation: VASP vs. Tbilisi Free Zone

Georgia gives you two options to operate legally as a business. The first is the mainland VASP license, issued by the National Bank of Georgia. It’s mandatory if you’re offering crypto services like trading, custody, or staking. It requires AML/KYC compliance, employee training, security audits, and ongoing reporting. The cost? Around $5,000-$10,000 to set up, plus annual renewal fees.

The second option is the Tbilisi Free Zone (FIZ) crypto license. This is for companies that want to operate offshore-style within Georgia. FIZ licenses offer zero corporate tax, no VAT, and no currency controls. You still need to register your company in the free zone, but you avoid most of the heavy compliance burden of the mainland VASP system. Many mining farms choose FIZ because they’re focused on hardware and electricity - not trading or wallet services.

Here’s how they compare:

Energy is the real advantage - not just taxes

Georgia’s electricity isn’t just cheap. It’s abundant and clean. Over 90% of the country’s power comes from hydropower. That means low emissions and stable pricing. Crypto mining uses a lot of electricity, but in Georgia, it only accounts for about 2% of total national consumption. That’s low compared to Kazakhstan (10%) or the U.S. (over 3%).

Why does that matter? Because cooling costs kill profits. Georgia’s mountainous regions - like Svaneti and Kazbegi - are naturally cool. Miners set up in old Soviet-era buildings or repurposed factories and don’t need expensive air conditioning. One operator in Kutaisi reported cutting cooling costs by 60% just by choosing a high-altitude location.

Plus, the government doesn’t cap energy use for miners. No blackout threats. No rationing. That’s not true in China, Russia, or even Texas. Georgia lets you plug in and run.

Compliance isn’t optional - but it’s manageable

The National Bank of Georgia, through its Financial Monitoring Service, is serious about stopping money laundering. Every business with a VASP license must:

• Verify customer identities (KYC)
• Report suspicious transactions
• Train staff on AML/CFT rules
• Keep records for five years

These rules came into full effect in 2023 and were strengthened in 2024 after IMF recommendations. The system isn’t perfect, but it’s transparent. If you’re a legitimate miner, you won’t be burdened. If you’re trying to hide dirty money, you’ll get caught.

One company in Tbilisi got flagged in 2024 because they were moving large sums between anonymous wallets without customer data. The FMS froze their account. They had to prove their customers were real. After 8 weeks of documentation, they got back online. The lesson? Don’t skip KYC - even if you think you’re just a miner.

Where are miners setting up shop?

Location matters. Small-scale miners (under 500 kW) tend to cluster in the mountains: Bakuriani, Mestia, and Sighnaghi. These areas have cheap or even free power for locals, and the cold air keeps rigs cool.

Larger operations (over 1 MW) go to industrial zones: Tbilisi, Kutaisi, and Batumi. These cities have grid stability, fiber-optic internet, and access to skilled labor. Kutaisi, in particular, has become a mining hotspot because of its low land costs and government incentives for tech startups.

Some miners even rent space in data centers that already host servers for banks and telecoms. It’s cheaper than building your own facility, and you get backup power and security built in.

What’s next? The 2026 deadline changes everything

By 2026, Georgia will fully implement its VASP framework. That means:

• All crypto service providers must be registered
• On-chain transaction monitoring will be mandatory
• Offshore structures will face stricter scrutiny

Right now, the FIZ license is a loophole. But the National Bank is watching. They’re not shutting it down - they’re tightening it. If you’re thinking of starting a mining business, do it now. The window for easy setup is closing.

Also, energy usage reporting is coming. The government is already testing a system that tracks how much power each mining facility uses. It won’t cap you - but it will make you accountable. Transparency is the new norm.

Why Georgia beats the competition

Compare Georgia to other mining countries:

• China: Banned mining in 2021. Done.
• Kazakhstan: High taxes, power cuts, political risk.
• United States: Patchy state laws, high electricity, environmental pushback.
• Russia: Unclear legality, sanctions risk, unreliable grid.

Georgia has none of those problems. It’s stable, legal, cheap, and clear. No one’s trying to ban you. No one’s raising your taxes. You just plug in and mine.

What you need to do to start

If you’re an individual:

1. Buy your mining rig.
2. Find a place with cheap electricity (mountain village or rural area).
3. Plug it in. Keep your receipts. You owe zero tax.

If you’re a business:

1. Decide: Are you just mining? Or are you trading, staking, or offering wallets?
2. If only mining → Register a company in Georgia (cost: $500-$1,000).
3. If offering services → Apply for a VASP license or FIZ license.
4. Set up KYC/AML systems.
5. Open a local bank account (most banks now accept crypto businesses if they’re compliant).
6. Start mining.

It takes 4-6 weeks to get a FIZ license. VASP can take 8-12 weeks. But once you’re in, you’re in for good.

Bottom line: Georgia is the easiest place to mine crypto right now

No country offers this combo: zero tax for individuals, low-cost energy, clear rules, and no political risk. If you’re serious about mining, Georgia isn’t just an option - it’s the smartest one.

Don’t wait for the rules to get harder. The window is open. Move now.