Cryptocurrency Regulation News
Belarus, a nation in between Russia and the European Union, recently legalized cryptocurrencies and Initial Coin Offerings (ICOs), which is all set to make private sector grow and attract foreign investors to the country, the communist republic that’s still dominated by its state, filled with the disorganized enterprises, and dependent on its neighbor Russia’s money and the subsidies.
The judgment reputably provides cryptocurrency enthusiasts tax breaks and legal incentives, since its aim is to help turn Belarus into an international tech heaven.
Lukashenko, a former collective farm manager who’s in the past labeled the internet “garbage,” told:
“Belarus will become the first government in the world that opens wide opportunities for the use of blockchain technology (…) We have every chance of becoming a regional center in this area.”
Created to attract the cryptocurrency businesspeople looking to evade regulatory analysis over the cryptocurrency transactions and ICOs, the order also releases the revenue and profits from all operations using the cryptocurrencies for the next few years.
Anton Myakishev, the head of Microsoft’s offices in Belarus, told:
“The decree is a breakthrough for Belarus as it gives the industry the possibility to make a leap forward in its development, while allowing foreign capital to enter it in comfortable conditions.”
Developing a “Technical Nation”
In the beginning of this month, Lukashenko told that his goal is signing the judgment is to turn Belarus into a “tech nation”. Not only legalizing the Cryptocurrencies and ICOs, it also allows local IT firms to partly operate under English law, So it will foreign investors who worried to navigate nation’s legal system.
Denis Aleinikov, a senior partner at private law firm Aleinikov and Partners, who helped draft the judgment, described:
“We regularly faced legal problems. When a Western company buys a Belarussian company they try to structure the deal outside Belarus. Investors don’t want to deal with Belarussian legislation.”
The judgment further organizes a direct legal link between token issuers and their obligations towards its holders. For protecting against the fraud, it sets the capital requirement for cryptocurrency exchange operators, while introducing the smart contracts in the nation.
Vsevolod Yanchevsky, head of the Hi-Tech Park, said:
“The decree has been written exactly the way our tech community wanted it. Belarus will be one of the best jurisdictions in the world for cryptocurrencies and blockchain.”
The statement, which will compute the protection of the retail investors, is likely going to be passed in March 2018. In October, President Putin approved a timeline for a framework on the cryptocurrency regulations. As the reports, the country will also soon be launching its own state-sponsored cryptocurrency which is named as Cryptoruble.