Belarus Cryptocurrency Laws

Belarus and Cryptocurrency

Belarus Cryptocurrency Laws
Regulation of Digital Currencies: Cryptocurrency, Bitcoins, Blockchain Technology

Belarus has legalized cryptocurrency transactions.  In December of 2017, the Belarusian government adopted Decree No. 8 “On the Development of Digital Economy,” marking the country’s first formal law governing cryptocurrency and blockchain. [1]  The Decree came into force on March 28, 2018.  Subsequently, in November of 2018, the Supervisory Council of the Hi-Tech Park approved additional guidance relegation token-related activities.  

Exchange of Cryptocurrency

The decree permits selling, exchanging, and mining cryptocurrency. The exchange of cryptocurrency for fiat money must be approved by the National Bank.  Operators of cryptocurrency exchanges, however, are categorized as high-risk – much like operators of lottery games and casinos under Belarusian law.  [2] 

Decree No. 8 legalizes token releases and distribution for business funding purposes.  Decree No. 8 recognizes the right of individuals to carry out cryptocurrency mining activities; acquire tokens; and exchange, sell, donate, bequeath, and otherwise dispose of cryptocurrency.

Under the Decree, businesses operating in the High Technologies Park receive an exemption from taxation and pay only 1% of their turnover.  These terms are guaranteed through 2049.  Crypto platforms have minimum capital and other regulatory requirements.  

ICO operators in the High Technologies Park.  ICO registrants may seek authorization through an application process.  See here.

P.S. Insights on Cryptocurrency Legal Issues

Most jurisdictions and authorities have yet to enact laws governing cryptocurrencies, meaning that, for most countries, the legality of crypto mining remains unclear.

Under the Financial Crimes Enforcement Network (FinCEN), crypto miners are considered money transmitters, so they may be subject to the laws that govern that activity. In Israel, for instance, crypto mining is treated as a business and is subject to corporate income tax. In India and elsewhere, regulatory uncertainty persists, although Canada and the United States are relatively friendly to crypto mining.

However, apart from jurisdictions that have specifically banned cryptocurrency-related activities, very few countries prohibit crypto mining.

Our Freeman Law Cryptocurrency Law Resource page provides a summary of the legal status of cryptocurrency for each country across the globe with statutory or regulatory provisions governing cryptocurrency.  The globe below provides links to country-by-country summaries:

Countries with National or Regional CryptocurrenciesGlobal Cryptocurrency RegulationsCountries with National or Regional Cryptocurrencies

Is cryptocurrency legal in Belarus?
Do you have questions about cryptocurrency, digital currencies, or blockchain technology?
Freeman Law can help with digital currencies, tax planning, and tax compliance.  Contact us now to schedule a consultation or call (214) 984-3410 to discuss your cryptocurrency and blockchain technology concerns.

Podcast:

The Freeman Law Project – Cryptocurrency Regulation and Taxation: A Brief Primer


[1] Decree of the President of the Republic of Belarus No. 8 of Dec. 21, 2017, http://president.gov.by/ru/official_ documents_ru/view/dekret-8-ot-21-dekabrja-2017-g-17716/, archived at https://perma.cc/S9UM-CKRG (in Russian).[2] Premiere of Digits, Belarus is the First in the World to Comprehensively Legalize Cryptocurrencies, RG.ru (Mar. 26, 2018), https://rg.ru/2018/03/26/belarus-pervoj-v-mire-kompleksno-vvedet-kriptovaliuty-v-zakon.html (in Russian), archived athttps://perma.cc/X258-2T5A.

 

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