Crypto Mining in Georgia: Regulations and Licensing in 2025

Georgia is one of the few countries in the world where you can legally mine cryptocurrency without paying any taxes on your earnings - and it’s not just a loophole. It’s a deliberate policy that’s drawn thousands of miners from Europe, North America, and beyond. By 2025, Georgia accounts for about 5% of global cryptocurrency mining activity, up from under 1% in 2019. That kind of growth doesn’t happen by accident. It happens because the rules are clear, the power is cheap, and the government isn’t trying to shut you down.

Is crypto mining legal in Georgia?

Yes. Completely. There’s no ban. No gray area. Individuals and companies can mine Bitcoin, Ethereum, or any other coin without breaking any law. The National Bank of Georgia (NBG) doesn’t treat crypto as money - it treats it as property. That’s important. It means mining rewards aren’t taxed as income for private miners. If you run a rig in your garage in Tbilisi or a mountain village, you keep 100% of what you earn. No capital gains tax. No reporting. No paperwork.

For businesses, it’s a little more structured. You don’t need a special mining license. But if your operation grows beyond a few machines and starts handling customer funds, trading, or running a crypto exchange, then you fall under the Virtual Asset Service Provider (VASP) rules. That’s the big regulatory shift that came into force in 2023. It doesn’t stop mining. It just makes sure companies aren’t laundering money through their operations.

Two paths to legal operation: VASP vs. Tbilisi Free Zone

If you’re running a commercial mining farm, you have two main options to stay compliant.

The first is the mainland VASP registration. This is mandatory if you’re offering services like custody, trading, or staking alongside mining. The NBG requires you to register your company, pass a security audit, train staff in AML/CFT procedures, and submit regular transaction reports. The process takes 2-4 months. Fees include company incorporation (around $500), licensing ($1,500-$3,000), and annual renewal ($1,000+). You’ll also need to maintain a local bank account and appoint a compliance officer.

The second option is the Tbilisi Free Zone (FIZ) license. This is for businesses that want to operate offshore under Georgian jurisdiction. FIZ gives you zero corporate tax, no VAT, and simplified reporting. You still need to register your company in the Free Zone, but you don’t need to meet the full VASP requirements unless you’re serving Georgian residents. Many large mining firms use this route because it cuts costs and complexity. You can still mine in Georgia, use Georgian power, and export your coins - all while being legally registered under FIZ rules.

Who needs a license? The line between hobby and business

Here’s where people get confused. You don’t need a license to mine as an individual. Even if you’re running 20 ASICs in your basement, you’re still a private person under Georgian law. No registration. No taxes. No reporting.

But if you hire employees, lease industrial space, buy power in bulk, or market your mining as a service - you’re a business. That’s when you need to register with the NBG or the FIZ. The line isn’t about how many machines you have. It’s about how you operate. If you’re treating mining like a company - with contracts, payroll, invoices - then you’re legally a company. The NBG looks at behavior, not hardware count.

Many miners start small, then scale up without realizing they’ve crossed into regulated territory. By the time they hit 50+ machines, they’re already generating $10,000+ a month in revenue. That’s when the Financial Monitoring Service (FMS) starts noticing. Don’t wait for them to knock on your door. Register early.

Energy: Why Georgia is perfect for mining

Georgia’s real advantage isn’t just regulation. It’s electricity.

The country generates over 90% of its power from hydropower. That means low cost and low emissions. Crypto mining uses about 2% of Georgia’s total electricity - less than the entire country of Norway. That’s because miners here use efficient machines and benefit from naturally cool mountain air. In places like Kazakhstan or Texas, you need massive cooling systems. In Georgia, you just open a window.

Miners cluster in two zones: the highlands (Svaneti, Racha) for small-scale operations, and industrial parks in Tbilisi and Kutaisi for large farms. The highlands offer near-free power because many farms use surplus energy from local hydro plants that would otherwise go unused. Kutaisi’s industrial zone has dedicated power lines, 24/7 security, and fast internet - perfect for corporate mining.

The government doesn’t cap energy use. They don’t limit mining. They track it. And because the system is clean and efficient, there’s no pushback from environmental groups or public officials.

Compliance: What you must do to stay legal

Even if you’re a private miner, you’re not invisible. Georgia’s AML/CFT rules apply to everyone who uses crypto exchanges or wallets. If you cash out to a Georgian bank, the bank must verify your identity. If you send large amounts to foreign wallets, the exchange may flag it.

For businesses, compliance is strict. You must:

• Verify customer identities (KYC) for all users
• Report suspicious transactions to the Financial Monitoring Service
• Keep transaction records for at least five years
• Train staff in anti-money laundering procedures
• Undergo annual security audits

The FMS has the power to freeze accounts and shut down operations if they find violations. In 2024, they investigated 17 crypto firms for suspicious activity. Five were fined. Two were shut down. The message is clear: Georgia welcomes miners - but not criminals.

What’s changing in 2025-2026?

The VASP framework is still being rolled out. By 2026, all crypto platforms operating in Georgia - even foreign ones serving Georgian users - must be registered. That means if you’re mining in Georgia but selling your coins to users in the EU or U.S., you may need to comply with both Georgian and foreign rules.

There’s also talk of introducing minimum energy efficiency standards for new mining hardware. Right now, there are no rules. But with global pressure to reduce crypto’s carbon footprint, Georgia may require miners to use only machines with a certain hash-per-watt rating. That’s not a ban - it’s a nudge toward better tech.

The government is also exploring digital ID integration for crypto users. Imagine logging into your wallet with your national ID card. It’s not mandatory yet, but it’s being tested. If it rolls out, it’ll make compliance easier - but also more traceable.

Who should mine in Georgia?

If you’re an individual with a few rigs and you want to keep your profits tax-free - Georgia is ideal. No registration. No taxes. Just plug in and mine.

If you’re a company with 100+ machines, a budget for compliance, and plans to scale - Georgia is one of the best places in the world. The FIZ license gives you offshore benefits without leaving the country. The power is stable. The regulators are predictable. The legal framework is written in English and updated publicly.

If you’re looking for a place to hide money or avoid taxes in your home country - skip Georgia. The FMS works with international agencies. They share data with the EU, the U.S., and the IMF. They’re not a tax haven. They’re a transparent hub.

Final thoughts: A model for the rest of the world

Georgia didn’t become a mining powerhouse by accident. They looked at what went wrong in Kazakhstan (power shortages), China (crackdowns), and Russia (sanctions). Then they built something better: clear rules, low taxes, clean energy, and smart oversight.

You don’t need to be a lawyer to mine here. But you do need to understand the rules. Register if you’re a business. Keep records. Use efficient hardware. Don’t try to game the system. The country doesn’t need you to be a genius. It just needs you to be honest.

And right now, that’s exactly what’s making Georgia the most attractive place on Earth to mine cryptocurrency.