Georgia Cracks Down on Unregistered Crypto Operators Amid Sanctions Enforcement
Georgia's Investigation Service has arrested a manager of an unregistered Virtual Asset Service Provider (VASP) in a move to curb illicit crypto activities. The arrest, which took place on August 12, 2026, marks the latest effort by Georgian authorities to tackle the issue of unregulated VASPs operating within their borders.
The accused individual allegedly facilitated cryptocurrency transactions worth tens of millions of dollars without registering with the National Bank of Georgia. Authorities claim that this operation enabled uncontrolled international transfers and created a financial pipeline outside regulatory oversight.
During the investigation, authorities confiscated computer equipment, dozens of bank cards, documents, $83,903 in US dollars, EUR 300 in cash, and crypto assets valued at approximately $79,600. The case is being prosecuted under Article 192-2-a of Georgia's Criminal Code, which carries a prison sentence of 3 to 5 years.
The investigation is ongoing, with authorities expanding their probe to identify additional suspects and examining potential tax evasion and money laundering charges. This latest crackdown arrives amid a wave of Western sanctions targeting Georgia-based crypto platforms allegedly involved in sanctions evasion linked to Russia and Iran.