Georgia isn’t just a country with stunning mountains and ancient wine traditions-it’s now one of the top 10 places in the world for crypto mining. As of 2025, it accounts for about 5% of global cryptocurrency mining activity, up from less than 1% in 2019. Why? Because the rules are clear, taxes are low, and electricity is cheap. But if you’re thinking about setting up a mining operation there, you need to know exactly how the system works-and what you’re legally required to do.
Is crypto mining legal in Georgia?
Yes. Completely. There’s no ban on mining Bitcoin, Ethereum, or any other cryptocurrency. The government doesn’t treat crypto as money, but as personal property. That’s important. It means you don’t pay income tax on the coins you mine if you’re doing it as an individual. No reporting. No filings. Just mine and keep what you earn. That’s why thousands of small-time miners from Europe, the U.S., and beyond have set up rigs in Georgian homes, garages, and even mountain cabins.What’s the difference between individual and commercial mining?
The rules split cleanly between two groups: individuals and businesses.If you’re mining on your own-with a few rigs in your basement or a small farm in the Caucasus-you don’t need a license. You don’t even need to tell anyone. Georgia’s tax code doesn’t recognize crypto mining as taxable income for private individuals. You can earn $10,000 in Bitcoin and never file a single form.
But if you’re running a company-whether you have 10 rigs or 10,000-you’re in a different category. You don’t need a mining-specific license, but you do need to register your business under Georgia’s standard commercial laws. And if your business is involved in anything beyond just mining-like holding wallets, trading, or providing exchange services-you’ll need to register as a Virtual Asset Service Provider (VASP).
What is a VASP license, and do you need one?
The VASP registration law, introduced by the National Bank of Georgia (NBG) in July 2023, is the cornerstone of crypto regulation in the country. It’s not a mining license. It’s a financial services license for companies that handle digital assets on behalf of others.So if you’re mining and keeping all the coins to yourself? No VASP needed. But if you’re running a mining farm and also offering custody services, staking, or trading to clients? Then yes-you must register as a VASP. The NBG requires these companies to follow strict AML/CFT rules: know-your-customer checks, transaction monitoring, suspicious activity reporting, and employee training.
The deadline for full VASP compliance is 2026. Until then, businesses have time to adapt. But the Financial Monitoring Service (FMS) is already active. They’re auditing platforms, checking transaction logs, and shutting down unregistered operators. Don’t assume you’re invisible.
The Tbilisi Free Zone alternative
For businesses that want to avoid the full weight of Georgian financial regulation, there’s another path: the Tbilisi Free Zone (FIZ). This is an offshore-style zone with its own rules. Companies registered here can operate with zero corporate tax, no currency controls, and simplified reporting.The FIZ crypto license isn’t for everyone. It’s designed for international firms that don’t plan to bank locally or serve Georgian customers. It’s cheaper and faster than the mainland VASP route. Setup costs are lower, compliance is lighter, and you can incorporate in days instead of months.
But here’s the catch: if you’re mining in FIZ but selling your coins to Georgian banks or using Georgian payment processors, you could still be pulled into the VASP system. The FIZ isn’t a loophole-it’s a separate jurisdiction with its own boundaries. Use it right, and it’s powerful. Use it wrong, and you risk penalties.
Where do miners set up shop?
Location matters as much as regulation. Georgia’s electricity is among the cheapest in Europe-around $0.03 per kWh on average. But it’s not evenly distributed.Small miners often go for remote areas like Svaneti or Kazbegi, where hydroelectric power is abundant and cooling is natural. The air is cold year-round, so you don’t need expensive air conditioning for your rigs. One miner in Mestia told me he runs 200 ASICs in a converted barn. His monthly electricity bill? $120.
Large-scale operations? They head to Tbilisi or Kutaisi. These cities have reliable grid connections, fiber-optic internet, and industrial parks with power upgrades designed for data centers. Some mining farms in Kutaisi now use 10 MW of power-equivalent to a small town. The government has even started offering land leases and tax breaks to attract these big players.
How much does it cost to get started?
For individuals: nothing. Just buy a miner, plug it in, and go.For companies: it adds up.
- Company registration: $200-$500
- VASP application fee: $1,500-$3,000
- Annual license renewal: $1,000+
- Security audit (required): $5,000-$15,000
- AML training for staff: $500-$2,000 per person
The FIZ route cuts some of these costs. Incorporation there can be under $1,000 total, and there’s no mandatory audit unless you’re handling large volumes of client funds. But you still need a local representative, a registered office, and a bank account-which can be tricky if you’re not physically present.
What about energy use and sustainability?
Crypto mining uses about 2% of Georgia’s total electricity. That’s less than the country’s public street lighting. And most of it comes from renewable sources-hydroelectric dams, mostly. The government doesn’t cap mining energy use, but they’re watching. If consumption spikes too fast, they might introduce tiered pricing or require miners to prove they’re using green energy.Right now, though, the focus is on attracting investment, not restricting it. The NBG has even started exploring ways to integrate blockchain into public services-like land registry and digital IDs. That’s a sign they see crypto not as a threat, but as a tool.
What’s next for crypto mining in Georgia?
The 2026 deadline for full VASP implementation is coming. Expect more audits, more reporting, and tighter controls on exchanges and wallet providers. But mining itself? It’s safe. The government has no plans to tax individuals, ban hardware, or limit power access.International firms are already expanding. One U.S.-based company just opened a 20 MW facility near Kutaisi. A Canadian miner moved its entire operation from Canada after paying $0.12 per kWh at home. In Georgia? $0.03.
The message is clear: if you want to mine crypto without red tape, high taxes, or energy shortages, Georgia is still one of the best places on earth to do it.
Do I need a license to mine cryptocurrency in Georgia as an individual?
No. Individual miners in Georgia do not need any license or registration. Mining for personal use is completely legal and tax-free. You can operate with a single ASIC miner or a small farm of 50 units without notifying any government agency. The only requirement is that you don’t offer services to others-like custody or trading-because that would make you a business subject to VASP rules.
What’s the difference between a VASP license and a Tbilisi Free Zone crypto license?
A VASP license is required if your business handles crypto assets for others-like exchanges, custodians, or staking platforms. It’s regulated by the National Bank of Georgia and comes with strict AML/CFT rules. The Tbilisi Free Zone (FIZ) license is an offshore option for businesses that don’t serve Georgian clients. It offers zero corporate tax, lighter reporting, and faster setup, but you can’t use local banks or serve residents without triggering VASP requirements. Think of VASP as the full regulatory path, and FIZ as a streamlined, tax-free alternative for international operators.
Is cryptocurrency mining taxed in Georgia?
For individuals: no. Mining income is not considered taxable under Georgian law. You keep all your coins without reporting. For businesses: corporate income tax applies only if you’re selling mined coins or providing services. The standard corporate tax rate is 15%, but companies registered in the Tbilisi Free Zone pay 0%. There is no capital gains tax on crypto held as property, making Georgia one of the most tax-friendly jurisdictions for mining profits.
How much electricity does crypto mining use in Georgia?
As of 2025, crypto mining consumes about 2% of Georgia’s total electricity. That’s low compared to countries like Kazakhstan or the U.S., where mining can account for 5-10% of national usage. Georgia’s advantage is its abundant hydroelectric power and cool climate, which reduces cooling costs. The government monitors usage but has not imposed limits. Most mining operations use renewable energy, and the National Bank of Georgia encourages this trend.
Can I mine cryptocurrency in Georgia if I’m not a resident?
Yes. You don’t need to be a Georgian citizen or resident to mine. Many foreign individuals operate rigs remotely using local partners or third-party hosting services. For businesses, you can register a company in Georgia without living there. The Tbilisi Free Zone is especially popular with non-residents because it allows remote management and offers no residency requirements. Just make sure you comply with your home country’s tax and reporting laws-Georgia doesn’t enforce them for you.