Belarus Moves to Legalize Crypto Banks, Kickstarts Hybrid Financial System

Belarus Opens to Crypto Banking With President Lukashenko’s Latest Decree

Belarus is taking action to become a hub for the crypto industry in Eastern Europe.

President Alexander Lukashenko signed on Friday the “On Crypto Banks and Certain Issues of Control in the Field of Digital Tokens” decree, legalizing crypto banks in Belarus. The decree defines crypto banks as joint stock companies with the faculties of combining regular banking activities, such as banking and payments, with digital tokens.

To become crypto banks, interested institutions will have to obtain a residence status in the Hi-Tech Park (HTP), a tax and legal regime established in 2005 and known as the “Silicon Valley of Eastern Europe,” and be included in the National Bank registry of crypto banks.

With this action, Lukashenko aims to position Belarus as a “flagship in the field of financial IT technologies,” providing clarity for the creation of crypto banks in the country.

First Deputy Chairman of the Board of the National Bank, Alexander Yegorov, revealed that the National Bank will work with regulators to adapt the current regulatory framework to this decree, estimating that this task will take six months to complete.

According to BelTA, Yegorov stated:

“In parallel, of course, we will work with all potential investors, both domestic and foreign, so that almost immediately after the preparation of all legislation, we can already see the first crypto banks in our country.”

Yegorov highlighted the significance of this ruleset, declaring it is “one of the most anticipated regulations” not only in Belarus but also internationally due to its uniqueness.

He revealed that in these banks, crypto assets and fiat holdings won’t be discriminated against, allowing the institutions to issue cards exclusively linked to crypto accounts. Banks will be able to issue loans secured by cryptocurrency, a feature that could attract investment from crypto native and mining companies in the region.

Read more: Belarus Aims to Reinforce Its ‘Digital Haven’ With Stronger Crypto Laws

FAQ

• What recent legal action has Belarus taken regarding crypto banks? President Lukashenko signed a decree legalizing crypto banks, allowing them to combine traditional banking with digital token services.
• What requirements must institutions meet to become crypto banks? Interested entities must obtain residence status in the Hi-Tech Park and register with the National Bank as crypto banks.
• What does Belarus aim to achieve with this decree? Lukashenko seeks to position Belarus as a leader in financial IT technologies, making it an attractive hub for crypto investments.
• What unique features will these crypto banks offer? The new law allows banks to issue loans secured by cryptocurrency and cards linked exclusively to crypto accounts, fostering investment opportunities in the region.