For almost one year I've been working on developing a Terramatrics crypto hedge fund. While developing the fund I have organically connected to like-minded individuals, investors, enthusiasts, and more. The other morning I had about two-hour very interesting meeting with a Greek investor, exploring his options in Georgia.
He seemed a bit surprised learning that TerraMatris crypto hedge fund is not registered in Georgia (or any other jurisdiction) and pointed out that I'm taking a huge risk operating this fund as an individual risking being sued e.t.c Completely valid points.
After our quality conversation, we agreed to continue exploring the ways we can partner in the future, forming some partnerships, and so on.
Now I took his words seriously and started to explore my ways of registering a company in Georgia + obtaining a crypto license. If there are little to no questions about company formation in Georgia, then with a Crypto license it sounds a bit complicated, at least thats what I thought in the beginning.
Luckily I found quite an informative article from Gofaizen & Sherle law firm (Estonia?) about obtaining a crypto license in Georgia
Before obtaining a license for cryptocurrency in Georgia, it is necessary to create a company. It is recommended to do this in the Free Industrial Zone (FIZ) territory, which provides preferential taxation and other favorable conditions. There is no mandatory authorized capital. However, it should be noted that the company must provide a realistic business plan.
Georgia is on the list of countries with a legal regime allowing international dealers to work with cryptocurrencies. This country is open to crypto, thanks to favorable tax conditions, soft laws, and liberal government.
Up until recently, the cryptocurrency sector in Georgia operated without any legislative regulation by the government. Nevertheless, in early 2023, the authorities introduced new regulations concerning cryptocurrency activities. Consequently, on July 1, 2023, the Law on Virtual Asset Service Provider (VASP) Registration Procedure came into force.
Each company that wants to engage in business activities in virtual currencies must obtain a crypto license in Georgia. It will allow you to legally carry out operations for the purchase and sale of cryptocurrency, with the possibility of providing services for storing it in wallets and conducting transactions.
With the correct execution of all necessary documents, obtaining a license for a crypto exchange in Georgia is easy and takes up to 2 months.
The cost of license registration is only 5000 GEL (2000 USD), which is an extremely low fee compared to other countries. In addition, there is no annual license renewal fee in Georgia. This not only reduces regular expenses but also makes the license management process easier. You won't need to plan for annual fees and budget to cover them.
Feel free to contact Gofaizen & Sherle law firm to learn more.
I believe with the right mindset and little paperwork it could be done in the DIY mode too. I'm not sure will TerraMatris crypto hedge fund will choose Georgia as a juridisction, I'm looking at Dubai too. But of course, Georgia is something to consider
If you are interested in learning more or participating in the Terramatris crypto hedge fund (minimum investment $10,000) - feel free to write me an email to reinis.fischer {at} terramatris.eu or connect on LinkedIn,