A decree to legalize cryptocurrencies is waiting to be signed into law by the president of Belarus. If the law is passed, cryptocurrencies and initial coin offering (ICO) tokens will be approved for civic circulation, rubbles can be traded for cryptocurrencies on exchanges, financing can be done through ICO, and mining will legal in Belarus.
A mandate to Legalize Cryptocurrencies in Belarus
Belarus is a landlocked nation in Eastern Europe, situated between Russia and Poland. The nation has a populace of around 9.5 million.
In 2005, a pronouncement was signed by Alexander Lukashenko, president of Belarus to commence an initiative to establish a special IT-centered economic zone, like Silicon Valley in the U.S. The zone is called the High-Tech Park (HTP). It’s the only area in the nation that systematically gives tax cuts. For instance, HTP inhabitants are excluded from income tax, property tax, land tax, and value-added tax.
Alexander Lukashenko (Source: Aljazeera)
In the late spring of this current year, a mandate was issued to encourage the inflow of foreign investments and integrate new technologies and developments in the HTP. This draft mandate, which has just been presented before President Alexander Lukashenko to sign into law, incorporates plans for digital currencies and ICOs at the administrative level.
As reported by local News Tut By Media:
“The mandate makes room for the introduction of digital currencies and tokens into civil circulation based on the blockchain technology. A proposal for a comprehensive legal regulation so that HTP residents can exchange cryptocurrencies, provide crypto exchange services, attract financing via ICOs, and publicly circulate cryptocurrencies and tokens.”
Based on the details of the publication,
“the mandate will introduce both cryptocurrencies and mining activities into the legal field, thereby making it possible to legally open up major cryptocurrency mining centers in Belarus”.
The news publication also stated:
“Experts believe that despite the low cost and abundance of electricity in the country, cryptocurrency mining activities would increase the demand for electricity on a nationwide scale.”
This week at the Sputnik press center by Sergey Lazyuk, Head if Digital Banking at Priorbank said;
“It is expected that Belarus will develop systems to facilitate easy exchange of fiat (real money) for cryptocurrency, as well as legalize such exchange points.”
In response to the legalization of cryptocurrencies in Belarus, Igor Mamonenko, the CEO of Belhard Group, a leading IT holding company in the country had this to say:
"The full cryptocurrency legalization is required…Although existing laws do not directly ban such activity, it is important that legislative reforms which protect all participants are made."
Cryprocurrency exchanges opening soon
Based on a report from Rossiyskaya Gazeta (Russian government’s paper of record), Belarus is set to launch its first centralized cryptocurrency exchange in the spring of next year. This exchange will be the first in the Customs Union territory (Russia, Belarus, Kazakhstan, Armenia, Kyrgyzstan).
According to the exchange’s website, exrate.by,
“it will the first centralized cryptocurrency exchange with the possibility of legal input and output of fiat funds.”
“In addition to the standard exchange and trade operations, the exchange will add the possibility of exchanging Belarusian rubles.”
According to a local news outlet, Ej.by, Sergey Lazyuk, while laying emphasis on the fact that the issue was still under consideration, said;
“it is expected that cryptocurrency exchanges would soon to be legalized in Belarus, and individuals would be able to exchange Belarusian rubles for cryptocurrencies, but not for dollars and euros.”
If this decree is successfully signed into law, it will serve as one more evidence that cryptocurrencies are the evolution of money and that they are here to stay, it would also be another win for the cryptocurrency community and a step further into ushering in the cryptocurrency era.
What effect do you think the legalization of cryptocurrencies in Belarus will have on the country and on the entire cryptocurrency community?