Belarus, a crypto-friendly nation, is gearing up to allow investment funds to put money into digital currencies. A proposal for this is part of a package of legal changes needed to attract these institutions to the country.
Ministry of Finance takes steps to facilitate investments in cryptocurrencies in Belarus
The Ministry of Finance has published amendments aimed at attracting investment funds to Belarus for public consultation. Despite having a regulatory framework for collective investments, so far no fund has been registered in the country, the department said in the reasons for the initiative.
One of the main reasons for the absence of these funds is that they are currently barred from investing in crypto assets, representatives from professional circles pointed out. The market for “digital tokens”, a legal term used to describe cryptocurrencies, is growing rapidly, the Ministry of Finance acknowledged.
To lift the restrictions, the ministry drafted a resolution amending its own decree on stock market activities belonging to investment funds. It plans to allow the funds to operate simultaneously as securities brokers and residents of the Belarus High Tech Park (HTP). The latter administers a special legal regime established to facilitate the country’s digital economy, including the cryptocurrency sector.
Another concern expressed by professionals is the absence of long-term guarantees from the government regarding the existing tax cuts for the sector. To address the issue, the Ministry of Finance has introduced new provisions that will extend tax exemptions for entities working with collective investments until January 1, 2031.
Belarus opened its doors to cryptocurrency companies with a decree “On the development of the digital economy” that took effect in the spring of 2018. The document, signed by President Alexander Lukashenko, introduced tax breaks and other incentives for companies managing digital assets. . .
Despite Lukashenko hinting at a possible tightening of regulations last March, Belarusian officials more recently indicated that Minsk officials have no intention of adopting stricter rules for the crypto space, even as the country’s closest ally, Russia, is in discussions. a proposal to ban a variety of cryptocurrency-related activities.
Although the use of cryptocurrencies as a means of payment is prohibited in Belarus, HTP residents can issue and exchange coins and tokens, and the country’s largest bank offers a service that allows users to buy and sell digital currencies. Chainalysis’ cryptocurrency adoption index ranks Belarus third in Eastern Europe after Russia and Ukraine due to strong peer-to-peer activity.