Cryptocurrency Regulation in Belarus

Regulation of cryptocurrencies and blockchain technologies in Belarus is a topic of growing interest among both local entrepreneurs and the international community. Belarus became one of the first countries in the world to officially legalise the use of cryptocurrencies and ICO (Initial Coin Offering), which attracted the attention of foreign investors and crypto enthusiasts.

A legal framework regulating digital assets has been formed in Belarus since 2017. Thanks to this regulatory act, Belarus High-Tech Park (HTP) residents received the right to create and use tokens and conduct transactions with cryptocurrency.

However, as in other countries, the development of digital assets requires a cautious approach and government regulation. Cryptocurrency regulation in Belarus is at the stage of active formation, which raises questions about security, taxation and the impact of new technologies on the financial market. In this article, we will analyse the current approaches, government regulation and prospects of the crypto industry in Belarus.

Approaches to Regulating Cryptocurrency Circulation in Belarus

Currently, Belarus is one of the few countries where the use of cryptocurrencies is permitted (this is possible with some peculiarities in the USA, Canada, Japan, Australia and Switzerland, as well as in some countries of the European Union). However, cryptocurrency settlements are not directly used in settlements between companies and individuals in Belarus since such settlements are not considered legal.

Cryptocurrency in Belarus is a digital asset suitable for investments and exchange transactions. However, it is not an official means of payment, so cryptocurrency settlements are limited and can only be carried out within the framework of legal crypto platforms and by the rules regulated by the requirements of the Belarusian state.

How to Legally Conduct Cryptocurrency Transactions in Belarus

A special legal regime has been created in Belarus – the High-Tech Park. Companies and individual entrepreneurs registered in Belarus can become residents of this Park. Only residents of the Park who have the status of a crypto exchange or crypto exchanger can conduct cryptocurrency transactions for companies and individuals.

In Belarus, companies and individual entrepreneurs can use cryptocurrency in their operations thanks to the legislative framework established by Decree No. 8, “On the Development of the Digital Economy.” This document regulates the issues of cryptocurrency ownership, exchange, and alienation, allowing companies to use digital assets freely and with several tax benefits.

For example, revenue from cryptocurrency transactions is not subject to value-added tax (VAT) and income tax for residents of the High-Tech Park (HTP), which creates favourable conditions for cryptocurrency businesses in the country. These benefits have been extended until 2049, although tax authorities can monitor such transactions to avoid illegal activities and market manipulation.

Cryptocurrency platforms or exchangers that are residents of the High-Tech Park are required to follow strict customer identification and anti-money laundering (AML/CFT) requirements. These include mandatory identity verification, keeping records of customer funds, and preventing anonymous and suspicious transactions.

Features for Companies Starting in 2025

It is planned that in 2025, HTP resident companies will pay tax on profits from cryptocurrency transactions at a rate of 9%, and non-HTP resident companies—at a rate of 20% or 25% when the profit from such transactions is more than 25 million rubles. This tax does not apply to the issue of companies’ tokens.

How Individuals in Belarus Can Use Cryptocurrencies

A number of rules regulate the circulation of cryptocurrencies among individuals, with the goal of preventing illegal activities and protecting the interests of the state and citizens.

Individuals in Belarus have the right to mine, buy, sell, exchange and store cryptocurrencies. They can freely use cryptocurrency to conduct various transactions, including purchasing goods and services, but with certain restrictions. Since September 2024, individuals, including individual entrepreneurs – residents of the High-Tech Park, can buy cryptocurrencies and exchange them for Belarusian rubles, foreign currency and electronic money only through resident companies of the High-Tech Park that are engaged in the exchange of cryptocurrencies.

Opportunities for Using Cryptocurrencies for Individuals in Belarus

1. Buying and Selling Cryptocurrencies

As residents of the HTP, Belarusians can buy and sell cryptocurrency through specialised platforms, such as exchanges. However, the legislation does not allow them to use foreign exchange platforms.

2. Storing Сryptocurrency

Individuals are allowed to store cryptocurrency in personal crypto wallets. Belarusian legislation does not prohibit the use of cold and hot wallets, which allows citizens to protect their assets by choosing the level of security at their discretion. Belarusians can store crypto assets in local or foreign crypto wallets.

3. Cryptocurrency Transfers

A person can transfer cryptocurrency to other citizens in Belarus and abroad. However, these transfers should not be related to illegal or prohibited activities and should be made through legal Belarusian crypto exchangers. Individuals are not required to report personal transfers to the state, but monitoring the legality of the funds received and sent is still recommended.

Restrictions and Taxation on the Use of Cryptocurrency by Belarusians

Although cryptocurrencies are allowed for use, Belarus has introduced some restrictions aimed at controlling their circulation:

1. Ban on the Use of Cryptocurrency as Payment

Currently, cryptocurrency cannot be used for direct payment for goods and services in Belarus, except when they are carried out through specialised companies—residents of the High-Tech Park (HTP).

2. Income Taxation

Individuals are exempt from income tax on cryptocurrency transactions until 2025. In 2025, Belarusians will not pay taxes on cryptocurrency transactions carried out with HTP resident crypto companies (for example, Bynex, Whitebird, Dzengi, Free2Ex, etc.). This rule is intended to stimulate Belarusians’ participation in the digital asset market.

Changes for Individuals Starting in 2025

The income tax status from cryptocurrency transactions has been revised as of January 1, 2025: Belarusians must declare such income yearly.

A 13% tax is to be paid on cryptocurrency transactions made on foreign platforms. The same approach will be applied when an individual receives cryptocurrency from a foreign company or individual. When calculating the tax, the costs of commissions and the purchase of cryptocurrency will be considered.

Cryptocurrency inherited and received as a gift from close relatives will not be taxed. If the total amount of gifts is 11,500 rubles, there is no need to pay income tax on cryptocurrencies donated by non-close relatives.

Income from cryptocurrency mining is also exempt from taxes.

Prospects and Risks

Belarusian regulation of cryptocurrencies aims to create a favourable environment for developing the digital economy. At the same time, the state closely monitors cryptocurrency transactions to minimise the risks associated with money laundering and terrorist financing. Regulators may tighten legislation in the future depending on the situation in the global market.

Thus, cryptocurrencies in Belarus are a legal but regulated asset for individuals, which allows citizens to use digital currencies in compliance with established standards.

Prospects for the Crypto Industry in Belarus

Belarus has shown increasing interest in developing the cryptocurrency industry in recent years. Against the backdrop of global digitalisation trends and strengthening legal requirements for the digital asset market, Belarus also seeks to create attractive conditions for crypto businesses and investors. Let’s consider the main prospects of the cryptocurrency industry in Belarus.

1. Attracting Foreign Investors

Belarus has already created a favourable environment for crypto companies by adopting Decree No. 8, “On the Development of the Digital Economy”, in 2017. This document introduced tax breaks for companies operating in the crypto and blockchain industries and also established the legal status of such companies. Thanks to this, Belarus attracted the attention of foreign companies that appreciated the transparency of regulations and the absence of several taxes in force in other countries. These measures increased the interest of foreign investors, who considered Belarus a promising jurisdiction for entering the crypto market.

2. Development of Blockchain Projects and Infrastructure

The state actively supports blockchain-based projects, including developing smart contracts, decentralised applications (dApps) and tokenization platforms. Belarusian IT companies focused on blockchain enjoy special rights and preferences within the High-Tech Park (HTP). It contributes to the growth of crypto startups and strengthens Belarus’ reputation as a centre for developing advanced blockchain solutions. Such initiatives open new opportunities for creating innovative products and services based on blockchain and cryptocurrencies.

3. The Emergence of Specialized Financial Services

Belarus is actively working on the development of specialized financial services, including crypto exchangers and platforms for trading digital assets. Many Belarusian banks have begun to show interest in implementing digital currencies and blockchain technology to improve the efficiency of financial transactions. If, in the future, regulators approve the launch of cryptocurrency services in traditional banks, this will help simplify cryptocurrency transactions and increase its availability to the population.

4. Attractive Legal Framework

Belarus continues to improve its legal framework in the digital asset sector. Transparent regulation and legal protection make the country attractive to companies looking to avoid the common uncertainty in many other jurisdictions. Despite the existing regulations, new amendments are being discussed to help regulate the digital market more flexibly and transparently, making it safe and attractive for users and companies.

5. Technological Education and Personnel Training

The development of the cryptocurrency industry requires highly qualified personnel. Belarus is actively working on training specialists in blockchain and digital assets. Universities and educational programs offer courses on blockchain and cryptocurrencies and conduct specialised training and seminars. It contributes to forming a personnel base capable of supporting the development and competitiveness of the Belarusian crypto industry.

Conclusion

Belarus’s cryptocurrency industry has significant growth potential due to government support, an attractive tax regime, the development of blockchain projects and personnel training. However, the industry’s future will depend on further steps in regulation and adaptation to global trends. If Belarus continues to support initiatives in this direction, the country can become one of the leading players in Eastern Europe in digital economy and blockchain.