Georgia Banking Restrictions on Cryptocurrency Transactions: What Businesses and Users Need to Know

Georgia doesn’t ban cryptocurrency. But if you’re trying to move crypto through a bank or run a Bitcoin ATM in the state, you’d better have the right paperwork-because the rules are strict, and they’re being enforced.

It’s Legal to Own Crypto, But Not to Move It Without a License

You can buy, hold, and trade Bitcoin or Ethereum in Georgia without breaking any laws. The government doesn’t treat crypto as legal tender, but it doesn’t outlaw it either. That’s not the issue. The real hurdle comes when you try to connect crypto to the traditional banking system.

Any business that lets people send or receive cryptocurrency-whether it’s a Bitcoin ATM, a crypto exchange, or a wallet service-must be licensed as a money transmitter under Georgia law. This rule became fully enforced in early 2025. No exceptions. No gray areas.

On January 16, 2025, the Georgia Department of Banking and Finance issued cease and desist orders to two companies: Bullet Blockchain, Inc. and Blockchain Technology Machines, Inc. (doing business as RocketBTM). Both were operating Bitcoin ATMs that allowed users to deposit cash and send funds to third-party wallets. They didn’t have licenses. The orders were immediate. No warnings. No grace period.

That’s the message: if you’re moving value-even digital value-you’re subject to the same rules as a wire transfer service.

Who Needs a License? The VASP Rule Explained

The legal backbone of Georgia’s crypto rules is the Virtual Asset Service Provider (VASP) registration law, enacted on July 1, 2023. It’s not just a suggestion. It’s a requirement. All entities offering crypto services-exchanges, custodial wallets, kiosks, even peer-to-peer platforms that facilitate transfers-must register with the National Bank of Georgia (NBG).

The application isn’t simple. You need to submit:

• Full details about your company’s ownership and management
• Proof of financial stability and funding sources
• A detailed Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) compliance plan
• Documentation of your KYC (Know Your Customer) procedures
• Proof that you can report suspicious transactions to the Financial Monitoring Service (FMS)

The NBG reviews each application carefully. They don’t just check boxes-they look at your systems. Can your software detect unusual patterns? Do your employees know how to spot red flags? Can you freeze accounts if needed? If the answer is weak, your application gets denied.

There’s no fast-track. No shortcut. And once you’re licensed, you’re under constant monitoring. The FMS tracks all transactions from licensed providers. Any failure to report suspicious activity can lead to fines, suspension, or revocation of your license.

What Happens If You Skip the License?

Operating without a license isn’t just risky-it’s illegal. And Georgia isn’t just warning people. They’re taking action.

The shutdowns of Bullet Blockchain and RocketBTM weren’t isolated incidents. They were a signal. The Department of Banking and Finance is actively scanning for unlicensed operators. They’re working with banks to freeze accounts tied to unregistered crypto businesses. They’re monitoring public listings of Bitcoin ATMs and cross-referencing them with the official license registry.

Penalties include:

• Immediate shutdown of operations
• Fines up to $10,000 per violation
• Criminal charges for repeat offenders
• Blacklisting from future licensing applications

And it’s not just the operators who get hit. Banks are now required to cut off services to any business suspected of unlicensed crypto activity. If you’re a merchant accepting crypto and your bank finds out you’re not licensed, your business account could be closed without warning.

Individuals: No Tax, But Still Bound by Rules

Here’s the bright side for regular users: Georgia has a 0% tax on personal cryptocurrency transactions. Whether you’re selling Bitcoin for cash, swapping Ethereum for Litecoin, or using crypto to pay for goods-you don’t pay capital gains tax. That’s one of the most aggressive crypto-friendly tax policies in the world.

But don’t confuse tax freedom with regulatory freedom. If you’re buying crypto through an unlicensed exchange or using an unregistered ATM, you’re still participating in an illegal activity. Your funds could be frozen. Your wallet could be flagged. And if law enforcement investigates, you might be asked to prove where your crypto came from.

Georgia’s government holds 66 BTC (worth about $6.86 million as of 2026) as part of its digital asset reserves. That’s not a symbolic gesture. It’s proof they’re serious about managing digital assets-on their terms.

Businesses: The Tax Trap

While individuals get a free pass on taxes, companies don’t. Any crypto business that makes a profit must pay a 15% corporate tax on distributed earnings. That’s higher than some neighboring countries, but it’s still lower than the U.S. federal rate.

The trade-off is clear: you get a clean, transparent, and legally protected environment to operate. No offshore loopholes. No hidden fees. Just rules you can plan around.

By 2025, Georgia expects 153,000 residents to be using cryptocurrency regularly-about 14.13% of the population. The market revenue is projected to hit $1.9 million. That’s not huge by global standards, but it’s a solid foundation for growth under strict oversight.

What’s Next? The 2026 Digital Asset Integration

Georgia isn’t stopping at crypto. The National Bank of Georgia is already reviewing applications to integrate other digital assets-like tokenized securities and central bank digital currencies-into the financial system. The goal? Full AML/CFT integration by 2026.

This means:

• More types of digital assets will require licensing
• Reporting standards will become even more detailed
• Banks will be required to monitor digital asset flows just like traditional wire transfers

The IMF endorsed Georgia’s AML/CFT upgrades in March 2024. That’s a big deal. It means international banks and payment processors are more likely to work with Georgian crypto firms. It also means Georgia’s rules are now aligned with global standards-not just local preferences.

How to Stay Compliant

If you’re a business in Georgia handling crypto, here’s your checklist:

1. Don’t operate any crypto service without a VASP license.
2. Use only licensed exchanges and ATMs for customer transactions.
3. Implement full KYC and AML procedures-even if you think your users are “low risk.”
4. Report all suspicious activity to the Financial Monitoring Service within 24 hours.
5. Keep detailed records of all transactions for at least five years.
6. Review the NBG’s official guidelines every six months-they update them regularly.

For individuals: stick to licensed platforms. Even if you’re not a business, your safety depends on the platform you use. Unlicensed services can disappear overnight. Your crypto could vanish. And you’ll have no legal recourse.

Who to Contact

If you’re unsure whether your activity requires a license, reach out to the Georgia Department of Banking and Finance. Rod Carnes, Deputy Commissioner for Non-Depository Financial Institutions, is the main point of contact for licensing questions. Their website has a full guide on money transmitter requirements for virtual currency kiosks and digital asset providers.

Don’t guess. Don’t assume. Get it in writing. The cost of compliance is far less than the cost of getting shut down.