This is how Belarus pressures Russia to legalize cryptocurrencies
Relations between Belarus and Russia have always been quite complicated. The union created by the two close allies has faced all kinds of challenges during their more than 20 years of existence. Now the cryptocurrency is becoming a new block of contention, as Minsk has taken a relatively friendly approach to regulate decentralized assets, while some in Moscow want them banned.
Twist your arms between close allies
The two former Soviet republics decided to reintegrate a few years after the dissolution of the USSR. The Community of Belarus and Russia was created in the spring of 1996 and the link between them was further strengthened with the signing of the “Treaty of the Union between Belarus and Russia” the following year.
Then, on December 8, 1999, the “Treaty on the Creation of the State of the Union of Russia and Belarus” was signed, aimed at establishing a federative entity similar to the Soviet Union. It was ratified by the two nations shortly after and the Union was formally born in 2000. The members had to choose a common head of state, adopt a new constitution, flag, anthem and passports, create joint armed forces and introduce a common currency.
However, the Minsk government, headed by the first and only president of Belarus, Alexander Lukashenko, continues to oppose any notion of loss of sovereignty, while Russia needs more control over its only open corridor to the West, now that Kiev no longer It is governed by friendly forces. The loss of Ukraine greatly increased the strategic importance of Belarus on the large geopolitical chess board. Some think that a new state led by Russia is an option for Vladimir Putin to retain power after his fourth term in the Kremlin ends in 2024.
Lately, there have been some hugs exchanges between Minsk and Moscow, which are preparing to commemorate the twentieth anniversary of their own union state. The Russian Federation accused Belarus of importing sanctioned Ukrainian products, with their customs stopping “Belarusian” apples at the border, while Belarus warned that pipes that pump Russian oil westward might need “emergency repairs.” In this context, the United States and the EU have been making diplomatic efforts with Lukashenko.
Bitcoin is the new apple of discord
With few natural resources in its territory and a poorly developed economy, Belarus needs the power of Russia to survive and develop. But while integration in some areas, such as defense and trade, has deepened, in others, such as the financial sphere, it has not yet achieved the established objectives. Now, the different treatment of cryptocurrencies has become a problem that adds new disagreements between the two countries.
Minsk invested heavily in the development of its IT sector, creating a special economic zone under the Belarus High Technology Park (HTP). A presidential decree “On the development of the digital economy”, signed at the end of 2017, entered into force in March last year, introducing a five-year tax exemption and other incentives for encryption companies registered by HTP. Belarus also plans to extract Bitcoin in a new nuclear power plant, whose first unit is scheduled to start operating in late 2019
At the same time, Moscow has taken a fairly conservative stance on decentralized money, with proposals to ban Russians from acquiring digital currencies on specialized trading platforms. But according to a leading figure behind Belarus High Tech Park, businessman Viktor Prokopenya, Russia cannot block cryptocurrency exchanges from Belarus just like that. In a recent interview with the Russian YouTube channel “Russkie Norm!” Quoted by Forklog, Prokopenya revealed that he had already shared his position on the matter with Russian Deputy Prime Minister Maxim Akimov:
“They even want to block encryption exchanges, which violates the treaty on the Union of Belarus and Russia. We have free movement of services, goods and capital among our countries, so limiting the activities of Belarusian crypto exchanges in Russia is a violation of our international agreement. ”
Viktor Prokopenya, who has invested in exchanging Currency.com among other digital companies, is credited with convincing President Lukashenko to create the HTP in Minsk. It is making a good point that should also be valid for other supranational entities, including the Eurasian Economic Union (EEU), of which Belarus and Russia are also members, as well as the largest and much more politically and economically integrated neighbor, the Union European
Cryptocurrencies are a new phenomenon that requires governments to write new rules from scratch, says the Belarusian businessman. And to acquire them, you don’t necessarily have to wait for countries to comply with their international agreements.
Cryptocurrencies including blockchain-bitcoin technology has the necessary attributes to provide countries with the technical support to develop a stable financial system, where user confidence is reflected, growth can be sustainable, there is a lack of government policy that can See beyond your possibilities. Waiting for new announcements
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