The Belarus High Technologies Park, a special economic zone, released additional rules governing cryptocurrency and blockchain operations within its jurisdiction. The regulations expand a framework in
The Belarus High Technologies Park, a special economic zone, released additional rules governing cryptocurrency and blockchain operations within its jurisdiction. The regulations expand a framework introduced in December 2017 and seek to establish Belarus as a top destination for crypto companies. The rules grant legal recognition to tokens, smart contracts, and cryptocurrency activities including mining, trading, and storage.
Belarus lawmakers developed the framework with help from Deloitte and the Swiss law firm Wenger & Vieli.
Martin Hess, a partner at Wenger & Vieli, described the regulations' strengths. "The Belarus approach to cryptocurrency regulation has the benefit of speed and simplicity because it does not require an understanding of the whole Belarusian legislation, court and legal practice in order to start a business," he said.
"The Belarus approach is different compared to other countries," Hess said, though "it remains to be seen how the stand alone Belarus regulations will be interpreted and applied. The Belarus regulations will also be assessed in comparison to the relevant legislation for digital assets in other countries."
He called for alignment with major financial centers. "Today, it's important to ensure that the regulations, their application and interpretation as well as their amendments and developments are equivalent to the legislation of other important jurisdictions such as US, China, European Union, Japan, Korea, Singapore and Switzerland," he stressed.
The High Technologies Park published the regulatory details on November 30. The framework addresses token promotion and consulting, cryptocurrency exchanges, and initial coin offerings.
Companies setting up in Belarus gain tax exemptions on all cryptocurrency transactions and ICOs through 2023. The country has implemented anti-money laundering and know-your-customer requirements. Authorities will shut down any crypto business involved in money laundering, with additional penalties for banks and payment processors that facilitate such activity.
The rules require crypto companies to protect customer data to standards equivalent to Europe's General Data Protection Regulations. Companies must warn customers of service risks, follow advertising guidelines, disclose material information that could affect customer security, and maintain internal controls for risk management, cybersecurity, and conflicts of interest.
Crypto businesses must meet operational standards including disclosure of beneficial owners, hiring qualified staff, maintaining financial stability, and using secure information systems. All companies must undergo audits by a major accounting firm.
The High Technologies Park was established in 2005 to encourage IT innovation and draw foreign companies through favorable tax and legal conditions. Over 200 companies now operate as residents, among them software firm EPAM, messaging app Viber, photo app Masquerade, and game developer Wargaming.
David Baron, chairman of the Belarus-US Business Council, sees the new rules as a draw for international companies. "Many US IT companies already know Belarus as a place to set up their software development division but Decree No. 8 will position Belarus a top destination for cryptocurrency ventures and value-generating global IT product companies," he said.
