Overview
On Sept. 5, Belarus President Aleksandr Lukashenko publicly chastised government bodies for failing to finalize comprehensive regulations for cryptocurrencies and digital tokens. Despite directives issued in 2023, Lukashenko noted that no binding rules have been adopted, leaving investors and firms in legal limbo.
Key Remarks
- “Transparent rules of the game” are required to marry investor safeguards with Belarus’s goal to become a global crypto hub.
- A State Control Committee inspection uncovered violations at multiple crypto platforms, including mishandled client funds sent abroad without proper return guarantees.
- Regulators must enact oversight mechanisms that protect financial stability while avoiding overbearing restrictions that could drive businesses to rival jurisdictions.
Regulatory Context
Belarus legalized crypto activities under a 2018 decree that granted tax breaks and ATA permissions. However, the regulatory framework has stagnated, creating uncertainty for exchanges, custodians and blockchain developers. Proposed amendments circulating since 2023 have yet to reach final parliamentary approval.
Industry Reaction
Local exchanges welcomed Lukashenko’s call for action. “We need clarity on licensing, custody standards and AML due-diligence,” said a Minsk-based exchange CEO. International firms monitoring Belarus cited the need for consistent rule-making to secure institutional partnerships and banking integration.
Global Implications
Belarus’s push comes as nations worldwide race to define crypto policies. The EU’s MiCA framework is months away from implementation, while the U.S. debates the GENIUS Act on stablecoins. Belarus aims to preemptively position itself as a transparent, low-tax environment for blockchain innovation.
Outlook
Regulators now face a six-month deadline to draft and enact the new rules. Stakeholders anticipate a streamlined licensing process, clear definitions of token classifications, and consumer-protection mandates. Failure to deliver could erode Belarus’s competitive edge in Eastern Europe’s burgeoning crypto landscape.
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