Declaring his formal support Belarusian President Alexander Lukashenko has signed a decree endorsing free-flow of circulation of cryptocurrencies such as Bitcoin [BTC]. Announcing the same through the president’s press office on Monday, Lukashenko signed the official order under the title “On the register of virtual wallet addresses and the circulation of cryptocurrency.”
The decree document specifically highlights the process and standards for securing cryptocurrency from criminals by the government. The published document offers a legal basis for Belarus Hi-Tech Park to establish and manage a register of crypto wallet addresses used in illegal activities.
Through the above measure, the order intends to protect crypto investors from potential losses and to “prevent unintentional involvement in activities prohibited by law.”
Furthermore, the document also entailed that the country’s council of ministers is required to take appropriate measures to enforce the decree within three months after its publication. The latest announcement reflects Belarus’s liberal outlook towards the digital assets industry.
Belarus’s friendly stance vis-à-vis Russia’s regulatory limbo
In 2017, Belarus President Alexander Lukashenko liberalized the usage of cryptocurrency, allowing users to own, mine, and trade digital assets for other tokens or currencies. While the country’s administration banned paying with cryptocurrencies for goods and services, institutional firms were however allowed to trade in them and create new tokens through the residents of Hi-Tech Park.
According to a study conducted by Blockchain data platform, Chainalysis placed Belarus in the third position among the countries in Eastern Europe after Ukraine and Russia in its cryptocurrency adoption index, quoting its strong peer-to-peer activity.
As Belarus moves faster toward cryptocurrency adoption, its key economic and political allies continued to maintain uncertainty on crypto regulation despite the government approving it last week
Russia, in January 2021 adopted its “On Digital Financial Assets” law, remained stuck as its various financial regulators continue to have disagreements on how to regulate crypto in the country.
Even though the Russian government formally approved the concept of crypto regulation last week, the Bank of Russia continues to mount opposition on the same. As per local reports, the Russian central bank once again is proposing to prescribe a ban on cryptocurrency circulation in Russia on Tuesday.