Belarus Legalizes Crypto Banks with New Decree Signed

On January 16, Belarusian President Alexander Lukashenko signed Decree No. 19 to regulate “crypto banks” as part of efforts to bolster the nation’s financial technology sector.

The decree positions Belarus as a crypto hub by permitting these entities in its High-Tech Park, potentially attracting international financial interests.

Belarus Enacts Decree to Advance Crypto Banking

Decree No. 19 defines cryptocurrency banks in Belarus as joint-stock companies engaging in business with digital tokens. These entities must comply with non-bank credit financial institution regulations and are part of the High-Tech Park (HTP). This regulatory move positions Belarus as a potential crypto hub, building upon previous strategies like the 2018 Decree No. 8. Despite this, the absence of specific funding allocations or significant financial shifts adds uncertainty to the venture, drawing mixed reactions from industry observers.

Industry stakeholders have closely monitored this legislative event, as Belarus positions itself to attract crypto enterprises. The decree could improve the country’s competitive edge in the European crypto market. Belarusian officials aim to standardize the use and oversight of crypto banks and widen the scope of HTP operations. While no direct comments have emerged from Lukashenko, Golovchenko has expressed the desire for unified regulatory rules across the EAEU, potentially easing cross-border crypto activities.

Research from the Coincu team indicates that Belarus’s crypto banking initiative could impact broader crypto adoption and regulatory perception. The decree’s regulatory framework sets precedents, affecting financial ecosystems within the EAEU. While crypto banks promise innovation, their success heavily depends on execution and continued governmental support. Information about Belarus urging EAEU countries to harmonize regulations can be found on Proelium Law’s cryptocurrency regulation tracker.

Historical Insights and Market Implications

Did you know? Belarus initially embraced cryptocurrency operations with its 2018 legislation, bolstering crypto exchanges while surrounding nations adopted stricter measures. This groundwork now allows Belarus to become a pioneer with its regulated crypto banking system.

According to CoinMarketCap, Bitcoin (BTC) currently trades at $95,582.61, with a market dominance of 59.07%. The 24-hour trading volume is $48.18 billion, reflecting an 18.90% decrease. Recent price changes show a 5.84% increase over seven days, despite a decline of 10.55% over the past 90 days.

Research from the Coincu team indicates that Belarus’s crypto banking initiative could impact broader crypto adoption and regulatory perception. The decree’s regulatory framework sets precedents, affecting financial ecosystems within the EAEU. While crypto banks promise innovation, their success heavily depends on execution and continued governmental support.