Key Highlights
- •Belarus has legalized cryptobanks, allowing the combination of digital tokens with traditional banking and financial services.
- •Cryptobanks must be registered within the High-Tech Park and adhere strictly to national financial regulations.
- •The country has blocked foreign crypto exchanges and is planning the rollout of its digital ruble by 2026 to encourage wider adoption.
Belarus has signed Decree No. 19, which legalizes cryptobanks and integrates digital tokens with traditional banking. This policy aims to bolster financial IT innovation and establish Belarus as a regulated environment for crypto activities.
The decree establishes a clear framework for the operation of cryptobanks under dual supervision, positioning Belarus as a regulated jurisdiction for digital asset activities.
Framework for Cryptobank Operations
The decree defines cryptobanks as joint-stock companies that can integrate banking, payment, and token operations. To operate, these companies must be registered as residents of the High-Tech Park and obtain approval from the National Bank. These institutions will operate under regulations similar to those for non-bank financial institutions and must implement decisions from the High-Tech Park Supervisory Board. This dual regulatory framework is designed to foster financial innovation while ensuring robust oversight, enabling banks to offer digital token products alongside established financial services.
Restrictions and Market Control
In recent developments, Belarus has restricted access to major cryptocurrency exchanges, including Bybit, OKX, and Bitget. This action was implemented following the adoption of the Mass Media Act and is overseen by the national telecommunications agency. Users attempting to access these blocked exchanges are presented with denial messages. These measures are part of a broader strategy to centralize cryptocurrency trading within domestic platforms. The government permits foreign platforms to operate exclusively within the High-Tech Park, thereby creating a controlled environment for innovation and experimentation in the digital asset sector.
Mining and Broader Crypto Strategy
The Belarusian government is also exploring the potential of cryptocurrency mining, particularly by utilizing surplus energy from domestic facilities. President Alexander Lukashenko has identified cryptocurrency mining as a significant strategy for de-dollarization, and authorities believe it can be profitable if it contributes to economic strengthening. Belarus has been closely monitoring global trends in digital assets, including the strategic accumulation of Bitcoin reserves by other nations. Furthermore, the country is actively developing its own central bank digital currency, the digital ruble. This project is slated for a phased rollout, encompassing platform development, software creation, and business integration by 2026, with full adoption anticipated by individuals and government entities by 2027. Concurrently, Russia is also moving towards the legalization of crypto investments under new regulations and is planning to implement new bank reporting rules to monitor cryptocurrency transactions related to cross-border money flows. Belarus's current decree builds upon its initial legalization of digital assets in 2017.