High-risk merchant account for Web3 and token projects with a Georgian company

We begin by reviewing your Georgian LLC’s profile, assessing your revenue model, token classification, and any existing processing history. This allows us to understand the specific risk drivers associated with your Web3 or token project. We then compile a detailed underwriting file, including essential documents like your token legal opinion and treasury wallet addresses. This comprehensive file addresses acquirer concerns around website compliance, refund policies, and UBO KYC. Finally, we match your business with specialist acquirers licensed for high-risk MCCs and your entity’s jurisdiction. We manage the warm introduction and guide you through the underwriting Q&A, preparing for post-approval requirements such as reserve settings.

When evaluating Georgian Web3 and token projects, underwriters and compliance teams prioritise transparency and regulatory adherence. They meticulously review six months of processing statements, if available, alongside chargeback and refund ratios. Key checks include detailed KYC for all Ultimate Beneficial Owners and directors, scrutinising the source of treasury funds. For Web3 projects, a robust legal opinion on token classification is critical. Proof of VASP registration with the National Bank of Georgia is required if your business provides custody or exchange services. They also assess website and checkout compliance, ensuring your marketing aligns with your service model.

Georgia offers a favourable environment for establishing a limited liability company, with registration typically completed within one to two days. However, obtaining a merchant account for Web3 activities requires careful navigation of the local banking landscape. While local banks are increasingly scrutinising crypto flows, the National Bank of Georgia oversees VASP registrations, providing a clear regulatory path. The option of an International or Virtual Zone status for your LLC can also influence perceptions. Establishing local substance, such as a local director or regular presence, can strengthen relationships with financial institutions. Reporting obligations include monthly and annual tax filings.

Merchant accounts for Georgian Web3 projects are often declined due to inadequate documentation, particularly a missing or unclear legal opinion on token classification, or a lack of VASP registration when applicable. Anonymous team members or a failure to transparently disclose the source of treasury funds are significant red flags. Furthermore, incomplete UBO KYC or non-compliant website content can lead to rejections. Xavion prevents these issues by preparing a thorough, compliant underwriting file. We ensure all required legal opinions are in place, team KYC is complete, and your business model is clearly articulated, addressing common concerns before submission.

The typical timeline for securing a high-risk merchant account for a Georgian Web3 project, from complete file submission to live processing, ranges from two to six weeks. This process involves initial profile review, detailed underwriting file preparation, matching with suitable acquirers, and their internal due diligence. Once approved, onboarding includes setting up a reserve and agreeing on rolling limits, if applicable. To remain live and avoid termination, ongoing compliance with card scheme rules is crucial. Xavion provides guidance on maintaining low chargeback ratios, ensuring consistent website compliance, and preparing for periodic compliance reviews by the acquirer.