Belarus will have a new cryptographic legislative framework.
The High Tech Park (HTP) of Belarus today announced the establishment of more favorable regulations for companies operating in the cryptocurrency sector.On the basis of its first Decree No. 8 “On the development of the digital economy” (December 2017), Belarus today i
ntroduced additional rules and protections to advance its position as one of the most attractive destinations in the world for business cryptocurrency.
The announcement places the country as host of the world’s first dedicated legislative framework adapted to cryptocurrencies and related companies, providing legal status for tokens and smart contracts, as well as operations related to mining, maintenance, purchase, sale, distribution or exchange of cryptocurrencies.
The framework, which aims to encourage the growth of companies related to encryption in Belarus and establish advanced measures to prevent fraud and financial crime, includes:
- Tax exemptions. The framework of Decree No.8 offers tax-free treatment for all cryptographic transactions and UCIs until 2023, which makes it advantageous for cryptographic companies to establish and operate in Belarus.
- Advanced laws against money laundering. Under Decree No. 8, Belarus has implemented the best anti-money laundering (AML) measures and knows its client (KYC), positioning the country at the forefront of the fight against fraud in companies related to cryptography. The cryptocurrency businesses that are involved in money laundering will be terminated immediately by the state authorities, with additional penalties for banks, payment services or any other financial services provider that may have facilitated such crimes.
- Strict data regulations and client protection. The new regulations emphasize the protection of personal data, implementing structures that guarantee data protection at the same level as the General Data Protection Regulation (GDPR) in the European Union. Cryptocurrency companies operating in Belarus must now warn customers about the risks associated with their services, comply with new advertising regulations, disclose any important information that affects customer safety and implement internal control systems for the management of risks, cybersecurity and conflicts of interest, among others.
- Higher business standards. All cryptocurrency companies in Belarus must now comply with certain operational requirements, including the disclosure of beneficial owners and the reputation requirements they meet, the hiring of qualified employees, compliance with strict financial stability standards and the use of financial systems. technically safe information to conduct your business. Adherence to all these standards must also be verified through an extensive audit conducted by a Big Four accounting firm.
Belarus has already demonstrated its ability to foster innovative technology companies in its High Technology Park (HTP), a special economic zone founded in 2005 with a favorable tax and legal system for IT companies. Decree No. 8 further updated the legal framework of the HTP, exempting IT companies of most of the VAT and income tax, as a result, the companies based in the HTP generated a record of $ 1,000 million in revenues in 2017 (more than 25% increase compared to 2016).
The Belarusian legislators worked with Deloitte, Wenger & Vieli and many other leading consulting firms to ensure that the new framework is closely aligned with global best practices.
The company must be registered as a money transmitter in the United States. “The US securities laws They can also be applied to cryptocurrency operations, which require the platform to be registered as an alternative trading system in the US “
Disclaimer: InfoCoin is not affiliated with any of the companies mentioned in this article and is not responsible for their products and / or services. This press release is for informational purposes only, the information does not constitute investment advice or an offer to invest.