Bitcoin is now legal in Belarus

According to the recent Precedential decree, Bitcoin trading is now legal in Belarus. The precedential decree titled “On the Development of the Digital Economy” came into force on March 28.

The Presidential Decree

With the release of this new decree, Belarus is trying to become a haven for crypto traders. The government is providing ample support, incentive, and freedom to various cryptocurrency related companies. On Wednesday, Belarus passed the decree allow a number of benefits to various cryptocurrency related companies. With this move, it has become a leading cryptocurrency motivated country in Europe. Furthermore, comprehensive regulations, largely legalizing the crypto sector, are now officially in place.

President Alexander Lukashenko

President Alexander Lukashenko

President Alexander Lukashenko signed the decree №8, which came into force on March 28. Consequently, the decree is passed to create conditions for the development of the digital economy in Belarus. This decree legalizes cryptocurrency related activities like exchange services, initial coin offerings, mining operations, smart contracts. Also, the document does not restrict the issuing, storage, and trade of digital tokens. Furthermore, individual startups and companies from crypto industry are also free to do their business. Lukashenko’s decree introduces tax breaks and other incentives for crypto businesses until January 1, 2023. The same applies to crypto-related income of private individuals from mining and trading cryptocurrencies. Also, the government will not tax the crypto firms that are based abroad until next five years.

New Standard of Belarus

Belarus has brought into effect a number of changes in its legal as well as banking system in order to promote cryptocurrencies. A large number of legal changes accompany the Decree “On the Development of the Digital Economy”. The government has implemented a new Standard just to address cryptocurrencies. It classifies “digital tokens” as cryptos in the new provisions, according to their acquisition and intended use. The National Chart of Accounts has been amended. The central bank of Belarus has also implemented changes. According to the government press release, it aims to withhold illicit activities in the crypto market by regulating it and also let it grow as a market by supporting it. Furthermore, taking into account all challenges, Minsk has decided to create a special Council for the Development of the Digital Economy.

The president has stated that he had no intentions to slow down the progress but warned entrepreneurs they should not forget the state and its interests. He also said:

“Let’s work together for this piece of land. I will guarantee you stability and non-interference,”

While the new regulations create favorable conditions for foreign investments and technological development, critics point out that Belarus may become just another offshore zone, a crypto-friendly one.

 

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