In Georgia, the rules for the registration of cryptocurrency (virtual asset) service providers have been introduced.
Key information for the purpose of registration of such persons:
Ø Virtual asset service provider can only be a legal entity, a limited liability company or a joint-stock company established and registered under the legislation of Georgia.
Ø It is not allowed to lend virtual assets to physical persons.
In order to register as a virtual asset service provider, the interested person must submit the following information/documentation to the National Bank:
- a) Filled virtual asset service provider registration form;
- b) List of virtual asset services to be provided by the virtual asset service provider;
- c) Information about each administrator of the virtual asset service provider;
- d) Information about both direct/indirect and beneficial owners of a significant share of the virtual asset service provider;
- e) Table of compliance of submitted documentation with registration documentation;
- f) Complete information, biography, passport data and their education - work experience, health information on all involved persons (owners, administrators, etc.);
- g) Proof of payment of the registration fee;
- h) Extract from the register of entrepreneurs and non-entrepreneurial (non-commercial) legal entities;
- i) Website and application details;
- j) Real estate statement confirming the right to use or own the real estate where the head office and branch/service center of the virtual asset service provider will be located;
- k) Detailed information about branches;
- l) if the interested person carries out/plans the exchange of a virtual in national or foreign currency, by receiving or transferring cash from the user (asset (except for the exchange through a self-service kiosk);
- l.a) A copy of the deed/deeds for installing the video surveillance system on the external perimeter of the head office and branches;
- l.b) Documentation confirming the presence of video surveillance cameras on the internal perimeter of the head office and branches (operation area and cash desk) (document confirming the purchase of cameras, installation document and/or photographs);
- m) A detailed schematic description of the implementation of the virtual asset service;
- n) An extract from the relevant registration authority of the manufacturer of the electronic system used to provide the virtual asset service and other relevant information;
- o) Information about the contractual relationship of the interested person with virtual asset service and/or information about payment service providers licensed/registered by the National Bank and/or licensed/registered in a foreign country;
- p) A business plan (at least with the budget forecast for the next 3 years), which confirms that the interested party has the ability to implement appropriate and relevant systems, as well as has the appropriate resources and procedures to carry out the activities. In addition, the business plan must confirm that the interested person plans to carry out activities in Georgia;
- q) The organizational structure of the interested party, which should at least include:
- q.a) The list of structural subdivisions of the head office, indicating their functions and the number of employees, as well as the structural development plan of the head office within 6 months from the start of activity after registration;
- q.b) If the interested person carries out activities through branches - a description of the functions of these branches;
- r) Internal instruction (policy-procedure) developed by the virtual asset service provider to implement the compliance control system in order to promote prevention of money laundering and terrorism financing;
- s) A statement by which the interested party confirms that, in order to ensure compliance with the requirements of the legislation about the prevention of money laundering and the prevention of financing of terrorism, it has implemented/will implement a compliance control system before starting the activity;
- t) The National Bank is entitled to request from the interested person other additional information and/or documentation necessary to make a decision on registration and to define a deadline for submission of above-mentioned information/documentation.
Requirements for the head office, branches, self-service kiosk and electronic system for the virtual asset service provider:
- One of the persons authorized to represent the virtual asset service provider must be in the territory of Georgia for at least 14 calendar days during a calendar month. His/her authority must be confirmed by an extract from the register of entrepreneurs and non-entrepreneurial (non-commercial) legal entities. In case of a possible violation of the deadline, the person authorized to represent the virtual asset service provider must inform the National Bank in advance of the relevant reason and provide his contact information (phone, e-mail) during his/her absence in Georgia.
- The virtual asset service provider is obliged to place its head office on the territory of Georgia, from where its administrator/administrators will carry out the actual management of the virtual asset service provider's activities;
- The head office, both real estate and its equipment, should be convenient for efficient management and control of the virtual asset service, as well as for smooth inspection by the National Bank;
- The head office of the virtual asset service provider must be physically separated from the premises used by any other person for any purpose;
- The operations performed by the virtual asset service provider in its system must be fully recorded, systematized and stored in such a way that it is possible to track any action taken with the recorded information. "Logging" and, if necessary, to be able to find and retrieve information about them from the head office of the virtual asset service provider in the shortest possible time;
- The virtual asset service provider must identify/verify the client electronically (remotely), including through a self-service kiosk, in accordance with the process agreed with the National Bank.
- The National Bank shall first correspond with the virtual asset service provider at the contact address specified in the registration application. Correspondence between the National Bank and the virtual asset service provider is also carried out electronically, in accordance with the procedure established by the National Bank.
Please note that the above requirements and list of documents do not exhaust all the requirements that exist for crypto related businesses. Each individual case is different. For detailed information about crypto license in Georgia, do not hesitate to share your situation with us. Contact our law firm in Tbilisi and our specialized lawyers will advise you in the shortest possible time.
