EU crypto regulations have reached a turning point. EU’s landmark crypto regulation, MiCA (short for Markets in Crypto-Assets), has crossed its hard enforcement deadline on July 1st, 2026. After this point, any crypto business serving EU clients without valid authorization will be simply breaking the law.
Naturally, this development affects all EU-based crypto operators and individual traders. If you are looking for alternatives, it might be the right time to take a serious look at Georgia. This article explores what crypto traders and businesses need to know about the crypto framework in Georgia after MiCA.
What is MiCA, and Who Does It Affect?
At its core, MiCA is a comprehensive legal framework for crypto assets. It creates a uniform system for licensing, disclosure, and compliance across all 27 EU jurisdictions. Notably, these matters were previously regulated by rules at the national level imposed by individual states.
MiCA primarily targets businesses that provide crypto services, such as exchanges, trading platforms, brokerages, custodians, etc. These types of entities are unified under the umbrella term of CASP, which is short for Crypto Asset Service Provider.
Technically, MiCA is not new. It was proposed by the European Commission in 2020. Core provisions of these regulations came into force in December 2024. However, most countries chose to adopt the maximum 18-month transitional period to give as much time to crypto operators as possible to obtain necessary authorizations. As stated above, that period expired just recently, on July 1st, 2026.
The formal authorization under MiCA needs to be obtained by CASPs from a national regulator. In addition, there are minimum capital thresholds, management requirements, strict AML systems, and other types of reporting requirements.
On the face of it, it seems like individuals are not affected. This is true enough, considering that MiCA is not a tax law or a direct regulation of private individuals involved in crypto trading. However, there are two significant indirect effects that MiCA has on crypto enthusiasts. Firstly, EU users lose access to all platforms that are not MiCA-licensed. Secondly, increased data-reporting obligations imposed by MiCA increase visibility of individual crypto activity to tax authorities. This practically erases anonymity for EU users.
In short, whether you run a crypto business or simply trade from within the EU, the crypto regulatory environment just became much more complex for you. Below, you can find out how Georgia can help you navigate these complexities.
Where Georgia Fits In
Above all else, it is important to mention that Georgia is not an EU member state. That fact alone opens up three different options for EU-based persons who are looking to step outside MiCA’s reach.
1. Operating a VASP in Georgia
As stated numerous times above, companies are required to go through extensive and convoluted procedures to obtain MiCA authorizations. For this reason, many businesses will be looking to incorporate in jurisdictions where the regulatory environment is less restrictive.
Crypto businesses in Georgia are also subject to special regulations introduced by the National Bank of Georgia. Specifically, businesses that wish to operate as crypto service providers (e.g., exchanges, custody providers, brokerages, etc.) must register for a Virtual Asset Service Provider (VASP) status with the relevant authorities. These regulations were introduced in 2023. We have covered the registration requirements and procedure in our article on the subject.
Essentially, one‑time VASP registration in Georgia can be completed within six months and requires 5,000 GEL in government fees. With an LLC structure, no starting capital is required. In contrast, MiCA’s minimum capital requirements begin at 50,000 EUR. This is even before legal costs and ongoing regulatory fees are taken into account.
In light of MiCA going live, there are three major upsides to operating a VASP in Georgia:
- Relative ease of authorization – VASPs are regulated in Georgia, and while registration takes some time, it is far less difficult and resource‑intensive than obtaining MiCA authorization.
- Favorable tax environment – Under the Estonian profit‑distribution model, Georgian companies pay zero tax on reinvested profits.
- Unfettered access to a non‑EU customer base.
It is important to note that VASP status cannot circumvent the restriction on serving EU customers. A Georgia‑licensed crypto business cannot legally market its services in EU member states under MiCA. However, for businesses targeting markets outside the EU, the Georgian VASP framework offers a good opportunity to establish a relatively low‑maintenance setup with a one‑time registration fee.
2. A Remote Company Setup for Crypto Trading
In our view, this is where the prospect of a Georgian setup truly shines.
At first glance, MiCA regulations do not affect private individuals directly. However, the indirect effect is quite severe: the exchanges available to EU residents will be limited to MiCA-licensed platforms. This comes with all the reporting, KYC, and data-exchange obligations of MiCA-authorized CASPs.
For this reason, many EU‑based traders will want to restructure their activities, though some cannot afford to relocate for a variety of different reasons. This is where a remotely set up and operated LLC in Georgia becomes relevant. Such a company can be used to access any exchange or brokerage of your choosing, without concern for MiCA restrictions or reporting.
Furthermore, the LLC can be maintained without the operator’s physical presence in Georgia. It is noteworthy that recent labor migration rules do not appear to affect remote non‑resident members of Georgian companies. Consequently, for traders seeking a convenient remote setup for their activities, a Georgian LLC represents a highly optimal option.
Unlike individual trading (more on this below), corporate crypto activity is not tax‑free in Georgia. Georgian LLCs are subject to full corporate tax (15%) and a dividend withholding tax (5%) on subsequent profit distributions to shareholders. However, the benefit lies precisely in the fact that the taxable object is distributed profit, not earned profit. This gives companies the freedom to reinvest profits indefinitely without paying tax, while also allowing them to defer tax obligations and control the timing of the taxable event.
Furthermore, crypto operations are fully exempt from VAT. You can learn more about taxes and base tax rates in our general article about taxation in Georgia.
3. Full Tax Exemption for Individual Traders Who Become Tax Residents
Since 2019, Georgia has been maintaining a strong position on taxation of crypto at an individual level: due to source-based taxation of asset-derived incomes, income from the sale of crypto, as an asset with no identifiable physical location, is completely tax-free for individuals.
While this does not help those who maintain tax residency in the EU, the individuals who can manage to leave their current tax jurisdictions and become Georgian tax residents can fully benefit from the unconditional tax exemption on income from crypto trading in Georgia. This is covered extensively in one of our previous articles on the topic.
This exemption applies to capital gains, trading profits, and, based on the current guidance, any crypto-derived personal income, such as staking. There is a point to be made about the longevity of this treatment as well, as it is explicitly grounded in the structure of the Georgian Tax Code and is not a temporary incentive that can be quietly withdrawn.
The conventional method of acquiring tax residency in Georgia is by spending 183 days or more in any rolling twelve-month period within the territory of Georgia. However, if living here for six months a year doesn’t align with your lifestyle, you can still become a Georgian tax resident without spending even a day here, which is possible by applying for the HNWI tax residency program.
Banking in Georgia
Banking is a complicated part of operating crypto-related structures anywhere in the world. Georgia is no exception to this. This topic is severely misunderstood among the Georgian business and expat communities, and we would rather give you an honest picture than oversell what’s available.
The short of it is that Georgian banks do flag crypto. This includes both Bank of Georgia and TBC, the two dominant retail and business banks in Georgia. They apply enhanced scrutiny to accounts with significant crypto transaction histories. Corporate accounts for foreign-owned and remotely operated Georgian LLCs engaged in crypto activities can be difficult or impossible to obtain at these institutions without the right structure in place.
However, a Georgian bank account is not mandatory. Georgia does not legally require LLCs to maintain a local bank account. The company’s income can be received, for instance, into an international online account (Wise is the most commonly used, and a Georgian LLC can hold a Wise Business account in the company’s name).
Consequently, for many crypto-focused structures, the combination of a Georgian LLC registration and a fintech business account is entirely sufficient for day-to-day operation.
That being said, obtaining a Georgian corporate account is also not impossible. The factors that most improve the likelihood of success are a Georgian-resident director or shareholder on the company (not merely a foreign resident), or at least a foreign director holding a Georgian residence permit. This is because banks are considerably more receptive to local connections.
For individuals relocating to Georgia, a personal bank account at a local bank like the Bank of Georgia is straightforward to open and does not carry the same crypto friction that corporate accounts do. Most individual traders find personal banking in Georgia workable.
How ExpatHub Can Help
We have been advising EU nationals, from freelancers to traders to company operators, on Georgian structures since the early days of Georgia’s emergence as an expat and investor destination. The MiCA deadline is creating a new and very specific wave of interest in Georgian solutions, and we are positioned to support it.
