In a remarkable move, Belarus appears set to prevent person-to-person (P2P) crypto transactions. This information, revealed in a Telegram message by the Ministry of Internal Affairs, indicates that the government is gearing up to legislate against individual cryptocurrency exchanges within the country. This verdict looks to be a setback for the bustling crypto trader environment in Belarus.
The proposed legislation pivots attention towards conducting such transactions exclusively though exchanges located within Minsk’s High-Tech Park. This park, a government initiative launched five years ago, had the grand vision of converting Minsk into a regional crypto center. However, the emphasis now appears to be on abiding by transparency and control principles in cryptocurrency trades within the country.
One driving factor for this legal restriction may stem from law enforcement shut down of twenty-seven unauthorized crypto exchanges since the dawn of 2023. Government documents reveal these unauthorized platforms engaged in some $8.8 million worth of illegal affairs within the year’s first six months.
Alexander Ringevich, the Deputy Head of the Main Directorate of Internal Affairs at the Belarusian Ministry of Internal Affairs, expressed his belief that adopting foreign currency exchange systems for crypto could prevent criminals from profiting from illicit activities. Ringevich added that the government’s conditions would likely deter IT fraudsters due to reduced profitability.
Doubtless, Belarus’s decision to halt P2P crypto trades has undoubtedly provoked fear of a wider crypto clampdown. Yet, crypto enthusiasts and businesses might find solace knowing that, as recently as March this year, Minsk extended a law allowing foreign crypto firms and their workers to operate exempt from taxation in the country’s High-Tech Park until no earlier than 2025.
Moreover, Minsk continues to roll out the welcome mat, enticing crypto exchanges, brokers, and miners to relocate to the country with promises of visa waivers and multiple other incentives. This affirmative stance sharply contrasts with the situation across the border in Russia, where crypto-related businesses allegedly see a staggering average of $296 million exchanged via P2P crypto trades per day.
Source: Cryptonews
