The president of Belarus formally issued a proclamation supporting the free flow of cryptocurrencies in the nation.
President Alexander Lukashenko, who has worked for years under the title of Europe's last dictator, signed a decree on Tuesday entitled "on the address register of virtual wallets and the circulation of cryptocurrencies".
The directive establishes a legal framework for Belarusian cryptocurrency regulator Hi-Tech Park (HTP) to keep a record of virtual wallet addresses that are used in illegal operations.
According to the decree, cryptocurrency activities require "constant monitoring" and, if necessary, "integration and clarification of regulatory rules".
By doing so, it protects crypto participants and investors from potential losses and prevents them from being "unintentionally involved in activities prohibited by law".
Belarus recently revealed that it has no plans to impose stricter rules on the country's regulatory framework for the crypto sector. This comes as Russia, a close ally of Belarus, has considered a blanket ban on a range of crypto assets including mining, trading and investing.
"Restrictive changes to the existing regulatory model are not currently foreseen," Belarusian HTP told Bloomberg.
A cryptocurrency friendly nation
The president believes his country "has every chance of becoming a regional center in the [crypto] area".
To substantiate its claim, the country has moved by leaps and bounds in embracing crypto-friendly moves. For example, the country has created favorable conditions for the development of blockchain technology and businesses based on it.
Furthermore, Belarus became the first nation to legalize smart contracts by introducing them into the jurisdiction and giving companies the right to use them in transactions.
Furthermore, Belarus HTP has been the main ground for pilot experiments with digital token operations. Resident crypto companies and international investors obtain a number of instruments under English law, namely, convertible loan, option contracts, non-compete, non-solicitation, indemnity.
According to data owned by TripleA, over 350K or 3,73% of Belarusians currently own cryptocurrencies such as Bitcoin, Ethereum, although we do not know if these are traded on platforms such as Bitcoin system.
Legal status of cryptocurrencies in Belarus
Belarus is one of the first nations to legalize ICOs, cryptocurrencies, and smart contracts. The Prez Lukashenko passed a law in 2017, which officially permits the creation, issuance, storage, sale or exchange of digital tokens, as well as cryptocurrency exchanges and mining operations.
The rule offered tax breaks and legal incentives for trading digital currencies in an attempt to transform Belarus into an international technology and business paradise.
While there are no restrictions on crypto activities, Belarusian legislation has said that legal entities can only create, acquire, dispose of tokens, and perform other transactions through the residents of the High-Tech Park.
In Belarus, cryptocurrencies cannot be considered money (both electronic and foreign banknotes), or securities; unlike Switzerland where digital assets are subject to the same rules as foreign currencies.
In terms of taxation, the legislation is quite liberal. The country has announced that activities related to the mining, creation, acquisition and sale of tokens will remain tax-free until January 1, 2023.
