Belarus is paving the way for cryptocurrency operations within its banking system by establishing a legal framework for “cryptobanks.” This new initiative, signed into law by President Alexander Lukashenko, aims to integrate digital assets into the financial sector while ensuring state oversight and adherence to regulatory standards.
New Regulations for Cryptobanks in Belarus
On Friday, President Alexander Lukashenko signed Decree No. 19, which outlines the operational rules and market entry conditions for cryptobanks. These institutions will need to register as residents of the Hi-Tech Park and be included in a central bank-managed register.
Under this decree, cryptobanks will be classified as joint-stock companies capable of merging token-based activities with traditional banking functions. This includes various financial services such as banking, payments, and related financial operations, all within a formal legal framework.
Instead of fostering a separate crypto sector, Belarusian authorities are linking cryptocurrency operations to existing financial oversight mechanisms, thereby maintaining controlled and traceable activity within the sector.
Hi-Tech Park Oversight and Compliance Requirements
A critical component of this new framework involves the Hi-Tech Park, which is already pivotal to Belarus’s digital economy strategy. Cryptobanks must achieve resident status within this park to operate legally, ensuring that state regulations govern the activity.
The new regulations also incorporate a dual oversight mechanism that combines financial regulation with technological supervision. Cryptobanks are required to comply with the same regulations that govern traditional credit and financial institutions while implementing directives from the Hi-Tech Park supervisory board.
This layered model is designed to foster innovative products that integrate traditional banking services with efficiencies gained from blockchain technology. By licensing cryptocurrency services through existing banking entities, Belarus aims to regulate cryptocurrency activity within clearly defined and state-sanctioned limits.
John is a seasoned journalist at The Bothside News, specializing in balanced reporting across news, sports, business, and lifestyle. He believes in presenting multiple perspectives to help readers form informed opinions. His work embodies the publication’s philosophy that truth emerges from examining all sides of every story.
