- “Cryptocurrencies are digital assets that are exchanged electronically,” Georgia.
- Businesses in Georgia are still not allowed to accept cryptos as payment.
In a groundbreaking milestone for the cryptocurrency space, Georgia has become the first country in its region to treat cryptocurrency transactions in the same way as foreign currencies. A report by Bitcoin.com indicates the minister of finance Nodar Khaduri signed into law a bill that exempts value-added tax (VAT) from being imposed on crypto transactions.
According to a definition by Georgia government:
“Cryptocurrencies are digital assets that are exchanged electronically and based on a decentralized network. Their exchange does not require a reliable intermediary and they are managed using distributed ledger technology.”
While this a huge step for the cryptocurrency community in Georgia, Khaduri emphasized that the tax exemption is only applicable for fiat-to-crypto transactions. This does not mean that cryptos are lawful ledger; it is only that the government is treating them as foreign currency.
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