Belarus President Signs Law Allowing Cryptobanks to Integrate Tokens Into Banking

Belarusian President Alexander Lukashenko has signed a decree that will further boost crypto adoption in the country. The decree centers around crypto banks, which will be able to integrate crypto assets into traditional finance (TradFi).

Belarus Introduces Crypto Banks That Combine Tokens and Banking

According to a release from the presidency, Belarusian President Alexander Lukashenko signed Decree No. 19 “on cryptobanks and certain issues of control in the field of digital signs (tokens).” The release noted that the move aims to strengthen the country’s image as a leader in financial IT technologies and stipulate the conditions for operating crypto banks in the country.

The Belarus Decree defines a cryptobank as a joint-stock company that has approval to grant the right to combine activities using digital tokens with banking, payment, and other related financial transactions. Notably, the country has crypto ties, as the president signed a decree in December 2017 that legalized digital assets.

More recently, Lukashenko urged the country’s minister of energy to look into how Belarus could start mining crypto. This came as he alluded to how more countries were turning to digital assets, including the U.S., which is working on establishing a strategic Bitcoin reserve.

“Look at this mining. More and more people are turning to me. If it is profitable for us, let’s do it. We have excess electricity. Let them make this cryptocurrency and so on,” he said. The Belarusian president also believes there will be demand for these crypto assets, given that even the world’s largest economy (the U.S.) is interested in digital assets.

It is worth mentioning that Belarus’s close ally, Russia, is also opening up to crypto. As CoinGape reported, the Bank of Russia is planning to allow investors to buy Bitcoin and other crypto assets legally as part of a new regulatory regime.

How The Crypto Banks Will Operate

The Belarus decree stated that crypto banks seeking admission to the market must have resident status in the High-Tech Park. They must also have gained registration with the crypto banks of the National Bank.

Furthermore, these crypto banks will be obligated to comply with the requirements of the legislation applicable to non-bank credit and financial institutions. They will also have to implement the decisions of the Supervisory Board of the High-Tech Park.

The dual regulation will enable these Belarus crypto banks to offer clients “innovative financial products that combine the benefits of traditional banking with the technological advances, speed, and convenience of digital token transactions.” It is worth noting that some of the top crypto exchanges in Europe already operate in the country.

Meanwhile, the country recently blocked residents’ access to crypto exchanges Bybit, Bitget, and OKX. This move was reportedly in accordance with the Mass Media Act.