Crypto-related activities are now considered legal in Belarus. The presidential decree “On the Development of the Digital Economy” came into force on March 28. The country aims to become a global IT hub luring entrepreneurs from around the world with a business-friendly environment. Unprecedented freedoms and generous incentives are enticing crypto companies to invest in the former Soviet republic.
Also read: Belarus Adopts Crypto Accounting Standard
Crypto Activities Are Free, Tax-Free
Belarus, a country that suffers from a bad reputation with politicians in the West, is now set to improve its image with western businessmen. On Wednesday, the close ally of Moscow, also called the last dictatorship in Europe, became a European leader as far as crypto freedoms are concerned. Comprehensive regulations, largely legalizing the crypto sector, are now officially in place.
Belarus High-Tech Park
Decree №8, signed by President Alexander Lukashenko in December, entered into force on March 28 to create conditions for the development of the digital economy in Belarus. It effectively legalizes crypto business activities, like exchange services, initial coin offerings, mining operations, smart contracts. The document does not restrict the issuing, storage, and trade of digital tokens. Individual entrepreneurs and corporate entities from the crypto industry are free to do business anywhere, as long as they register as residents of the Belarus High Technologies Park (HTP).
Lukashenko’s decree introduces tax breaks and other incentives for crypto businesses until January 1, 2023. No taxes will be imposed on companies that profit from mining, issuing and placement of digital coins. The same applies to crypto-related income of private individuals from mining and trading cryptocurrencies. In the next five years, even crypto firms based abroad will not be taxed.
The new regulations include measures to simplify procedures regarding foreign trade and the hiring of foreign nationals by the residents of the Hi-Teck Park. Employees and investors in the HTP will not be required to apply for work permits. They will also benefit from a special visa waiver regime and will be granted temporary residence status in Belarus.
Comprehensive Regulations Adopted
An array of legal changes accompany the Decree “On the Development of the Digital Economy”. This week Belarus implemented a new standard aimed at adjusting its accounting practices to address cryptocurrencies. It classifies “digital tokens” as cryptos in the new provisions, according to their acquisition and intended use. Authorities have defined the information crypto companies and entrepreneurs are required to share. The National Chart of Accounts has been amended.
The National Bank of Belarus
The central bank of Belarus has also implemented changes. They concern the oversight of commercial banks and other financial institutions and introduce new requirements for the internal control procedures. According to the government press service, the new rules aim to prevent the legalization of illicit incomes, terrorism financing and the proliferation of weapons of mass destruction. Officials claim the regulations are intended to perfect
