Many Forex, Crypto and Fintech entrepreneurs which are based in Europe are familiar with it. It is hardly noticeable that European regulations, the systematic destruction of the Fintech industry (the arbitrariness of commercial banks have led to the impasse of this branch of the economy), unprecedented compliance efforts and insurmountable obstacles to payment and recycling have led to the fact that in 2018.
Georgia – New El Dorado
At the moment there is a real wave of European, licensed companies migrating to all areas of finance. Mainly from the Forex trading, Crypto and Fintech industries. And not only in the direction of the Caribbean or the South Pacific, but in the Caucasus region of Georgia.
What is the cause of the emigration wave?
More and more banks are systematically destroying the Fintech industry like never before. Covering vital assets for the new industry, as well as closing accounts, terminating credit card contracts or terminating fee debit card programs. In addition, Fintech companies no longer have the opportunity to formally offer a SEPA payment method to non-EU companies and are therefore forced to terminate business relationships with non-European contracting partners. It is therefore not surprising that the Fintech industry is disoriented – going through the madness of European over-regulation.
In other fieldsit looks much more dramatic. This is also the Crypto-field. The ICO launches cryptocurrency exchange projects or trades in securities that are difficult to implement or unlicensed in Europe.
The Forex industry is also in trouble. The Forex industry is mainly located in Cyprus and Malta. But they have long sought “membership opportunities” in non-EU countries. Georgia is very distinguished in this respect. European licenses are being created more and more, which ultimately only serves to gain the trust of investors and traders. Money production is already taking place in the Middle East.
Pros of Georgia for Forex, Crypto and Fintech companies
My team and I have known for years, we are well aware of the problems and challenges of European consumers. Over the past few years we have relocated many Forex, Fintech and Crypto companies to other countries – primarily in Georgia.
But why Georgia?
Ministries in Georgia work fully digitally. Starting a company and opening bank accounts in large international banks is not a problem. Licensing of areas of activity that are heavily regulated in Europe (cryptocurrency, forex and securities transactions, as well as payment processing) by the relevant supervisory authority in Georgia does not require minimum capital or securities deposits, nor does it take years to implement as in Europe.
Processing time is a total of 6-8 weeks and this includes forming a company, opening an account, registering a financial provider and accreditation by the National Bank. For comparison, in addition to high costs, it takes at least 1.5 years in Europe. Bitfury, one of the largest blockchain companies, is also based in Georgia and operates a data center in Tbilisi. Georgia was one of the first countries in the world to keep a founding book (record) on the blockchain. All malls have Crypto ATMs for buying and selling Bitcoins, Ethereum and Litecoins.
The following advantages:
- Low starting costs
- Fast processing time
- There is no automatic exchange of information
- Low tax burden, before tax exemption
- There is almost no bureaucracy