Cryptocurrencies are still a popular billion-dollar industry in 2021. To control the origin, movement and turnover of these funds, each country has regulators who introduce legal regulations. In this regard, many people associated with cryptocurrencies have questions and concerns about how this will affect them. I dare to make some assumptions. Cryptocurrency is not prohibited by law in most countries of the world. Accordingly, we have different approaches to cryptocurrency regulation. Let’s look at the situation in Belarus.
Decree No. 8 or what has changed in the digital economy of the country?
Belarus is the first country in the world to legalize smart contracts back in 2018. This happened after the signing of Decree No. 8 “On the development of the Digital Economy”, which came into force in March 2018. Then, for the first time, a legal framework was created for the development and functioning of the crypto industry in the country. What did this lead to? All states in the world have a standard approach to cryptocurrency:
- if this currency is recognized at the level of a Power, it is taxable like any income;
- exchangers and exchanges, any platforms are required to have data about their customers in order to comply with the rules on countering money laundering and terrorist financing;
- bitcoin and other currencies are not banned as a means of payment, although in most countries they are not recognized as such;
- in civilized countries, miners, traders, and owners of cryptocurrency are not persecuted, given that this is also money, a large number of them arouses the interest of the competent authorities about the sources and legality of the acquisition.
How is the cryptocurrency regulated in Belarus? Since the adoption of the key document, the country has a legal framework, and free currency circulation is allowed. The Government has a positive attitude towards entrepreneurship in the digital economy. As a result of the decree, mining, blockchain, cryptocurrency exchanges, and smart contracts were legalized. Any transactions with tokens are exempt from tax (until 2023).
Thus, we see that the legal framework regulates cryptocurrency in Belarus – sale, purchase, exchange. It is allowed to work as an operator of a cryptocurrency exchange, an exchanger and other areas. The status of a resident of the Hi-Tech Park, which has an official permit for activity and state benefits (tax), has been introduced. The number of residents of the Park numbered 969 companies with more than 65 thousand employees at the end of 2020.
Changes in the regulation of cryptocurrencies in Belarus in 2021
The deputies approved a new document, Decree No. 1 “On Changing the Decrees of the President of the Republic of Belarus” in March 2021. As a result, the HTP administration was able to control the financial transactions of residents. In my opinion, key changes may occur in the field of crypto activity in Belarus, namely:
- The administration may, at its discretion, revoke the status based on the results of the audit. In other words, for non-compliance with the regulations on the elimination of violations, you can be excluded from the HTP.
- It is legally established that it is illegal business activity – for individuals and legal entities that are not residents of the Park, carrying out activities for the purchase or sale, exchange of tokens using the networks and resources of the national segment.
- The HTP administration has received the function of monitoring residents’ compliance with the AML/CFT law (for certain types of activities).
Thus, the regulation of cryptocurrency turnover in the Republic of Belarus has a legal basis, which allows HTP resident companies to provide services for the sale, purchase, exchange of cryptocurrencies, and attract financing using ICOs.