Fintech licensing in Georgia covers a wide range of activities beyond traditional banking. Georgia is positioning itself as a regional fintech hub, fostering the growth of various financial service providers. This service covers not only banking but also licenses and registrations such as Payment Service Provider (PSP), Virtual Asset Service Provider (VASP), Microfinance Organization (MISO), and Loan Issuing Entity. Each comes with specific requirements regarding capital, governance, IT infrastructure, and AML/CFT compliance. Choosing the wrong license or failing to meet regulatory requirements can lead to operational bans and substantial fines. This service involves selecting the right license tailored to the client's business model and full support during the registration process.
What Does the Fintech Licensing Service Cover?
Our lawyers will assist you in obtaining any type of fintech authorization:
- Payment Service Provider (PSP): Licensing for companies wanting to create e-wallets, process payments, or conduct money remittances.
- Virtual Asset Service Provider (VASP): Registration for crypto-exchanges, crypto-wallets, and ICO/STO projects under new National Bank regulations.
- Microfinance and Loan Issuing Entity: Registration for online lending platforms and credit companies.
- Currency Exchange Point: Registration of electronic and physical currency exchange bureaus.
- AML/CFT System Setup: Creating Anti-Money Laundering policies and selecting software necessary for licensing.
Common Scenarios and Business Needs
Fintech licensing is essential for the following businesses:
- Opening a Crypto Exchange: A company plans to create a cryptocurrency trading platform and needs VASP registration.
- Creating a Payment System: A startup creates an app allowing users to pay utility bills and transfer money to friends.
- Peer-to-Peer (P2P) Lending: A platform connecting investors and borrowers requires a loan issuing entity or brokerage license.
- E-money Issuance: A company issues its own digital currency (non-crypto) used for payments within a closed network.
Georgian Legal Framework
The field is regulated by several key laws: "Law on Payment Systems and Payment Services", "Law on Microfinance Organizations", and the NBG Decree "On the Rule of Registration of Virtual Asset Service Provider". Regulations impose strict requirements on capital (e.g., from 250,000 GEL for PSP), administrator qualifications (Fit & Proper), and software. For VASPs, special attention is paid to transaction monitoring (Travel Rule) systems.
Service Process: What to Expect
The process begins with analyzing the business model to determine the exact license type. The lawyer prepares a full registration package, including internal procedures and policies. Consultations regarding IT audit proceed in parallel. After submission, the lawyer manages communication with the National Bank, answers additional questions, and attends interviews. The goal is to obtain the license within minimum timeframes and without deficiencies.
Why Choose Legal.ge?
Fintech regulations are constantly changing. On Legal.ge, you will find lawyers specializing in financial technologies who know the latest National Bank requirements. We will help you navigate the maze so you can focus on your innovative product rather than bureaucracy.
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