Crypto Mining in Georgia: Regulations and Licensing in 2025

2 May 2025

Georgia has quietly become one of the top five countries in the world for cryptocurrency mining. Not because of massive data centers or government subsidies, but because it does something rare: it lets miners operate with almost no red tape - and pays them nothing in taxes. If you're thinking about setting up a mining rig, Georgia might be the easiest place on Earth to do it legally. But there’s a catch. The rules changed in 2023, and if you ignore them, you could be in trouble - even if you're just running a few ASICs in your garage.

Is crypto mining legal in Georgia?

Yes. Completely. No ban. No gray area. The Georgian government doesn’t just tolerate crypto mining - it encourages it. As of 2025, Georgia accounts for about 5% of global Bitcoin mining activity. That’s up from less than 1% in 2019. Why? Because the country made mining simple, cheap, and safe.

Unlike China, which shut down mining in 2021, or Kazakhstan, which started taxing miners heavily, Georgia treats cryptocurrency like personal property - not money. That means if you mine Bitcoin and sell it, you don’t pay income tax. Not a cent. This applies to individuals and small-scale miners. No registration. No reporting. Just plug in your rig and start mining.

But here’s where people get confused: if you’re running a business, things change. You can’t just set up a company called “Tbilisi Crypto Mines LLC” and assume everything’s free. The National Bank of Georgia (NBG) introduced the Virtual Asset Service Provider (VASP) law in July 2023. It doesn’t target miners directly - but it does target anyone who handles, stores, or exchanges crypto as part of a business.

Who needs a license?

If you’re mining for yourself - one or two rigs in your basement, selling coins on Binance or Kraken - you don’t need a license. Georgia doesn’t require individuals to register their mining activities.

But if you’re operating as a company - even if you’re just hiring three people to manage 100 ASICs - you need to comply with VASP rules. That means registering your business with the NBG. You’ll need to:

• Incorporate a legal entity in Georgia
• Submit an AML/CFT compliance plan
• Train employees on anti-money laundering procedures
• Pass a security audit
• Appoint a compliance officer

And yes - you have to report suspicious transactions. The Financial Monitoring Service (FMS) watches everything. They don’t care how much you mine. They care if someone’s laundering money through your operation.

There’s also a second path: the Tbilisi Free Zone (FIZ) license. This is an offshore option. If you incorporate in the FIZ, you get:

• 0% corporate tax
• 0% VAT
• No currency controls
• No requirement to file financial statements publicly

It’s cheaper and faster than the mainland VASP license. But here’s the catch: you can’t operate your mining hardware inside the FIZ. The zone is for administrative and financial services only. You still need to house your rigs in a real location - usually Kutaisi, Tbilisi, or a mountain town with cheap power.

Where do miners actually set up shop?

Power is the real king in crypto mining. Georgia has two big advantages: low electricity costs and cool weather.

Most individual miners set up in mountain towns like Bakuriani or Mestia. The electricity is cheap - sometimes free - because those areas have excess hydropower during the rainy season. Miners plug into local grids, often working with small energy cooperatives that sell surplus power at a discount.

Large-scale operations? They go to industrial zones in Tbilisi or Kutaisi. These areas have:

• Stable grid connections
• High-capacity transformers
• Access to fiber-optic internet
• Proximity to logistics hubs

Some companies even lease old Soviet-era factories. One mining firm in Kutaisi converted a 1970s textile plant into a 10-megawatt facility. They use the building’s thick walls and high ceilings to naturally cool their rigs - cutting cooling costs by 40%.

Georgia’s total crypto mining energy use? Around 2% of national consumption. That’s less than the country’s data centers. Compare that to Kazakhstan, where mining hit 15% of national demand in 2022 - leading to blackouts. Georgia’s grid is stable because it’s built on hydropower, and miners mostly run during off-peak hours.

What about taxes?

This is where Georgia really stands out.

For individuals: zero tax on mining income. You mine Bitcoin. You sell it. You keep 100%. No capital gains tax. No income tax. No reporting. The NBG doesn’t ask you to declare your wallet address. They don’t track your transactions unless there’s a suspicion of crime.

For companies: corporate tax is 15% on profits - but only if you’re operating on the mainland. If you use the Tbilisi Free Zone, your company pays 0% corporate tax. You still pay for incorporation, compliance, and audits - but your net profit after those costs can be nearly 100%.

There’s one exception: if you’re mining and also trading crypto as a business - buying and selling coins regularly - the NBG may classify you as a financial services provider. That triggers VASP registration. But if you’re just mining and cashing out once a month? You’re fine.

What’s changing in 2025-2026?

The VASP framework is still being rolled out. By 2026, every crypto business - including mining companies that hold wallets or offer custody - must be fully compliant. The NBG is also tightening rules around energy use. New mining projects over 5 megawatts now need environmental impact assessments.

Some miners are worried. They fear Georgia will follow other countries and start taxing mining energy. But so far, the government hasn’t moved in that direction. In fact, they’re actively promoting Georgia as a green mining hub. The country’s electricity is 90% renewable - mostly hydropower. That’s a big selling point for ESG-focused investors.

The Financial Monitoring Service is also upgrading its blockchain surveillance tools. They’re not trying to stop miners. They’re trying to stop criminals. If you’re clean, you have nothing to fear. If you’re using anonymous wallets to move millions without KYC? You’re already on their radar.

How to get started

If you’re an individual miner: buy your rig, find a cheap power source, plug it in. Done.

If you’re starting a company:

1. Choose your path: Mainland VASP license or Tbilisi Free Zone
2. Incorporate your company with the Georgian National Agency of Public Registry
3. Apply for VASP registration with the National Bank of Georgia (if on mainland)
4. Complete AML/CFT training for your team
5. Secure a power contract and physical location
6. Install monitoring software to log all transactions

Costs vary. A basic VASP license on the mainland runs about $8,000-$12,000 in setup fees. The FIZ route costs $5,000-$7,000 - but you’ll still need to pay for office space, compliance staff, and audits. Most companies spend $15,000-$25,000 in the first year to get fully compliant.

There are local law firms in Tbilisi that specialize in crypto licensing. They can handle the paperwork in 2-4 weeks. Don’t try to do it yourself unless you speak Georgian and understand Georgian corporate law.

Why Georgia beats the competition

Let’s compare Georgia to other mining hotspots:

Comparison of Crypto Mining Environments in 2025

Location	Tax on Mining Income	License Required?	Power Cost (USD/kWh)	Regulatory Clarity
Georgia	0% (individuals)	Only for businesses	$0.03-$0.06	High
Kazakhstan	10-20%	Yes	$0.04-$0.08	Medium
United States (Texas)	0% (state), federal tax applies	No (but state permits needed)	$0.06-$0.10	Low (patchwork rules)
Canada (Quebec)	25-50%	No	$0.05-$0.07	High
Paraguay	0%	No	$0.02-$0.04	Low

Georgia wins on clarity. It’s not the cheapest power. It’s not the most lenient. But it’s the only place where you can legally mine at scale, pay no tax, and know exactly what the rules are. That’s rare.

What could go wrong?

The biggest risk isn’t the law - it’s complacency.

Some miners think, “I’m just a small operator, I don’t need to worry.” But if you’re using a Georgian bank account to receive crypto sales, and you transfer $100,000 in Bitcoin without KYC, the bank will freeze your account. The NBG has been cracking down on anonymous transfers since 2023.

Another risk: power shortages. Georgia’s grid is stable, but droughts can cut hydropower. In 2024, a dry winter led to a 12-hour blackout in parts of western Georgia. Miners with no backup generators lost thousands in potential earnings.

And don’t assume the rules won’t change. Georgia’s government is pro-crypto now. But if global regulators pressure them - or if a major money laundering case surfaces - they could tighten rules overnight. Stay updated. Subscribe to NBG bulletins. Follow the Financial Monitoring Service’s public reports.

Georgia isn’t a loophole. It’s a legitimate, well-designed system. If you play by the rules, you’ll thrive. If you ignore them, you’ll get caught - and you won’t be the first.