News: Legalization of cryptocurrency in Belarus

Belarus - Silicon Valley of Eastern Europe

The Decree "On the Development of the Digital Economy" was signedin Belarus on December 22, 2017.

Belarus has become one of the few countries where regulation proved positive for the further development of the cryptocurrency market.

Foreign companies will be able to work with partners who are residents of the High Technology Park. At the same time, actual presence in the territory of jurisdiction is not necessary.

Residents of the Hi-Tech parkreceive the following rights:

• to render consulting services in conducting ICO, including marketing support;

• to open cryptographic exchanges and exchangers;

• to engage in the mining of cryptocurrencies;

• to form investment funds;

• to launch and run own ICO.

For crypto-exchanges and exchangers, there is an important condition for doing business within the framework of the current legislation. They must have corporate accounts with the following amounts in banks of Belarus:

• for crypto-exchanges - 1 million BYN ($ 500 thousand and more);

• for cryptocurrency exchangers - 200 thousand BYN (over $ 100 thousand) and more.

The main provisions of the Decree

• Natural persons can mine, buy/sell tokens for fiat currencies, while their activities will not be equated to entrepreneurial.

• Legal entities need a partner for conducting ICO who would be a resident of the HTP. The company does not need to be located in Belarus.

• Trading operations with tokens are not subject to taxation.

• Token is the equivalent of a property right in cases of its storage, exchange or sale. The transfer of such right is recognized after the transaction is reflected in the blockchain.

• Until 2023, transactions with tokens will not be taxed, including VAT and income taxes on exchange.

• Residents of the HTP are entitled to use smart contracts.

The bill described will come into force in three months. It is assumed that the said Decree will attract large-scale projects to Belarus and bring the country's economy to a new, higher level.

For detailed information on the residence of the company in the Belarusian HTP and regulation of cryptocurrency operations, please contact the lawyers of Law&Trust International.