The decree is certainly a positive example of state regulation of new technologies. Belarus did big step towards the development of the industry. Moreover, the document is aimed at organically integrating the country into the economy of the future.
I would like to note that the adoption of the decree is the result of the work of a number of government bodies, which means their full understanding of current economic processes and phenomena.
The heart of the digital economy should be the High Technology Park represented by its residents, and its circulatory system should be companies and individuals, both residents and non-residents of Belarus.
However, on this moment For non-residents of the park, participation is expected in conjunction with a resident partner.
What does the decree say about tokens and cryptocurrencies?
Let's look at seven key features of the decree related to the circulation of tokens and cryptocurrencies.
1.
The decree itself is aimed at creating favorable conditions for the introduction of blockchain technology into the Belarusian economy, based on the principles of decentralization, publicity and security of transactions performed using it.
2. New residents of the Hi-Tech Park
The following types of activities related to the circulation of tokens and cryptocurrencies are permitted for park residents:
- Providing services related to the creation and placement of tokens, including services for their promotion.
- Activities of crypto exchanges.
- Activities of crypto exchangers.
- Mining.
- Activities using tokens containing characteristics of an exchange.
- Activities of the investment fund.
- Securitization.
- Carrying out operations to create and place your own tokens.
- Other activities using tokens.
There are special requirements for operating as a crypto platform operator and cryptocurrency exchange operator. It is necessary to ensure the availability of funds in bank accounts in Belarus in the following amount:
- At least 1 million BYN (about 500 thousand USD) – for the operator of the crypto platform.
- At least 200 thousand BYN (about 10 thousand USD) – for a cryptocurrency exchange operator.
Thus, the state intends to ensure compliance with the financial obligations of these entities to their clients.
3. Other subjects
According to the decree, individuals and legal entities, including non-residents, have the right to own tokens and perform the following operations with them:
4. Token and its characteristics
The term “digital sign (token)” used in the text of the decree also includes cryptocurrencies. Key Difference token from a cryptocurrency is that the cryptocurrency is in mass circulation as a means of payment.
From a tax point of view, the alienation of tokens is considered as the exercise of property rights. The token is not subject to inclusion in tax returns. It is not a security as defined by Belarusian law.
Tokens also do not constitute funds, securities, electronic money or other property, including property rights, as well as exclusive rights to the results of intellectual activity.
5. Token turnover
Currency legislation does not apply to residents of Belarus when they conduct permitted types of transactions with tokens.
The transfer of rights certified by a token is confirmed by the transfer of a token from one entity to another. The transfer of a token is considered completed at the moment the confirmed operation is reflected in the blockchain.
6. Smart contracts
Within the framework of the Hi-Tech Park, a legal experiment is being carried out with the provision of its residents the right to make and/or execute transactions through smart contracts.
7. Taxes
Until January 1, 2023, the following are not recognized as objects of taxation:
- Turnovers on the alienation of tokens, including by foreign organizations.
- Profit from exchanging tokens for other tokens.
- Revenue from the exchange of tokens for other tokens.
- Income of individuals from carrying out permitted operations with tokens.
I would like to note that, as before, legal entities and individual entrepreneurs of Belarus will be able to become residents of the park, subject to the provision of a business project that will be implemented by the entity as a resident.
In connection with the adoption of the decree, the number of residents of the park, in addition to the above companies whose activities are related to the circulation of tokens, will be able to be replenished by companies operating in the following areas:
- Fintech
- Training neural networks
- Drone development
- Biotechnology
- Development of solutions for aviation and space
As part of the legal experiment being carried out in the park, it is planned to introduce some institutions known to English law. For example, convertible loan agreements, agreements on granting an option to conclude a contract and an option agreement, agreements on compensation for property losses.
The adopted regulation represents a win-win strategy for economic development. It can be an excellent reason for various eminent companies and businesses to settle in Belarus for a long time and seriously.
And for those who are just thinking about starting a company, this is a reason to choose this country as a suitable jurisdiction for a successful start.
Investor's opinion
Alexander Chekan, venture partner of the Haxus fund
The main provisions of the decree were widely discussed both in the IT community and in government agencies - the National Bank, the Ministry of Taxes and Duties, the government and law enforcement agencies.
On December 11, at a meeting with representatives of the IT sector, which was attended by about 20 people, the president carefully listened to their position regarding the already prepared decree, asked questions and, in the end, promised to sign it “before the big meeting” (December 22 there was a meeting with entrepreneurs ).
The main motive for adopting the decree is to enable international projects to operate legally in a clear legal framework, attracting investment to Belarus.
In the country’s economy, experiments with blockchain technologies are being implemented by the National Bank, and the currency and stock exchange is preparing for implementation. At the moment, no country in the world has adopted comprehensive regulation for all elements of the crypto-economy, yet the market is booming and there is a clear demand for transparent legislation.
In my opinion, after the decree comes into force, there will be more domestic startups, transactions will be structured within Belarus, and therefore their execution will become cheaper. Also, more corporations will set up R&D offices in the country, and startups and funds will come from other countries that need clear jurisdiction for blockchain projects.
I have no serious concerns about the state of the startup ecosystem in Belarus after the decree comes into force, because in the worst case, the market for blockchain projects will collapse.
But the decree provides “buns” not only for them, but also for three dozen other types of activities, including medical technologies, IT education, e-sports, biotech, advertising technologies and others.
As for the danger of scams in ICOs, here, firstly, the ICO market itself is becoming somewhat more stable, and, secondly, when projects receive benefits and join the Hi-Tech Park, they undergo a KYC procedure, which may include technical expertise in the case any doubts.
For exchanges and exchangers, there are requirements for account balances, although they are quite modest: 0.5 and 0.1 million dollars, respectively.
Bitcoins in Belarus have become a legal currency since December 22, 2017, when President A. G. Lukashenko approved a decree creating optimal conditions for the development of the blockchain network and cryptocurrency in particular. The state takes on the functions of a regulator in this area, including the issue of mining and circulation of virtual money. What are the subtleties of the innovation? How to buy Bitcoin in Belarus? What can you spend virtual money on? We will discuss these and other questions in the article.
Legalization of Bitcoin in Belarus - subtleties
The signing of the decree “On the development of the digital economy” was a truly historical event. The legalization of cryptocurrency makes Belarus the first state to open up great opportunities for the use of blockchain technology.
Essence and goals
The innovation implies the absence of prohibitions on the purchase, sale or exchange of virtual money. In addition, the operation of cryptocurrency exchange platforms is not prohibited, and Bitcoin mining is not a business activity. This means that the income received does not need to be declared. The government allows cryptocurrency mining until 2023, after which it plans to introduce taxation on this type of profit. In addition, according to the new decree, virtual coins can be used as an object for inheritance.
The purpose of the innovation is to attract new investments to the country and make the Belarusian market interesting for IT companies. It is planned that such structures will eventually fill the country and will create new products of interest to the whole world.
Another goal is to develop the economy through the introduction of new digital tools. The President of the Republic of Belarus is confident that the legalization of virtual currency makes Belarus attractive to large investors, and over time the country can become a regional center of competence in the field of blockchain and related technologies.
Thanks to innovations, the Hi-Tech Park received the following opportunities:
- Providing services for the extraction and placement of virtual money, including promotion and solving related problems.
- Operation of virtual money exchange services and cryptocurrency exchange platforms.
- Other work related to the use of coins. This includes areas related to exchange activities, investing, and conducting operations to create and place newly created virtual coins.
- Preparing teams for eSports tournaments. This includes work related to the preparation of participants, solving organizational issues, as well as broadcasting competitions.
- Development of neural and other technologies in special departments.
Consequences of innovation
Experts are confident that the official legalization of virtual money in the Republic of Belarus will lead to a number of consequences for neighboring countries. In particular, bills to regulate the cryptocurrency market in the Russian Federation are planned to be temporarily “frozen.” Parliamentarians in Russia will try to study the experience of the neighboring country, and only after that make decisions regarding the future of virtual currencies. At the same time, the Russian government considers not only the experience of the Republic of Belarus, but also the practice of other countries. Attention is paid to the Japanese and Swiss cryptocurrency markets.
How to buy Bitcoins in Belarus - options
The legalization of virtual money has made cryptocurrency accessible to everyone. There are many ways to acquire Bitcoin for further sale, purchase of goods (services) or long-term investment. Below we will look at the main ways to buy Bitcoins in Belarus.
Exchange
A popular way to buy cryptocurrency, which is also available in the Republic of Belarus, is to use services (for example, Yobit or EXMO). Such services allow you not only to exchange virtual money, but also to make money on the difference in rates (if you have special knowledge). For clarity, graphs with the exchange rate price of virtual currencies are offered, which provides information about the cost of money online and helps make purchasing decisions.
When choosing an exchange platform, you should give preference to international services, for example, which was mentioned above. This is an accessible and reliable exchange where you can quickly and safely purchase Bitcoins. Before exchanging, you should do the following:
- Understand the features of the service. For beginners the most important concept- quotation. In our case, we are interested in the Bitcoin (BTC)/Russian ruble (RUB) pair. There is no direct purchase for the Belarusian currency yet, so the money entered into the account must be converted into one of the available monetary units, and then buy Bitcoin. Another tool is a price movement chart, which allows you to see changes in the Bitcoin rate over different time periods.
- Complete registration. To get started, you need to register and then log in to the EXMO cryptocurrency exchange. Immediately after logging in, a wallet is created that can be used inside the site.
- We deposit money into the site account in dollars, rubles, euros or other currencies. This can be done different ways, including through WebMoney or Yandex.Money. If you only have Belarusian rubles on hand, you will have to first convert them, and then put them on the exchange.
- Select the direction for exchange (for example, BTC/RUB). This means that Bitcoins will be bought for Russian rubles.
- Go to the “Exchange” section (for novice users). The “Trading” section is more suitable for participants who make money on the difference in rates of virtual currencies and understand this issue.
- We decide on the direction of exchange, and then indicate the number of rubles for exchange. The system automatically displays how many Bitcoins will be purchased for this amount.
- We confirm the operation.
- We go to the wallet and make sure that Bitcoin has appeared on the account. All that remains is to withdraw your cryptocurrencies to your Bitcoin wallet.
Exchange offices
If you are interested in the question of how to easily and quickly buy Bitcoin through an EPS wallet or other methods, you should pay attention to exchangers. In the CIS countries there are many services with the possibility of conversion, which can also be used by residents of Belarus. There are no complicated terms here, and the exchange process takes no more than 2–3 minutes. The exchange rate changes throughout the day, but within insignificant limits. Despite the legalization of Bitcoin in Belarus, there are still no exchangers with the ability to exchange Belarusian rubles for Bitcoins. The operation can only be carried out through preliminary currency conversion.
To buy Bitcoin in the Republic of Belarus through an exchanger, you need to do the following:
Another option is direct cooperation with other individuals who are ready to sell cryptocurrency. Using this method, you can buy Bitcoin in Belarus using a card, cash or EPS. The search for a transaction partner is done through special forums or websites (for example, Localbitcoins.com). The last option is more preferable, because you can find a seller from Belarus and check his reputation.
The purpose of the Localbitcoins.com service is to perform intermediary functions. It does not guarantee the success of the operation, but it offers an internal protection mechanism that allows you to carry out a transaction with less risk (the name of the escrow system). The method of transferring money depends on the agreement between the parties. For example, a buyer can transfer Belarusian rubles to the seller’s card, after which Bitcoins are credited to the cryptocurrency wallet.
Thanks to a direct agreement, you can avoid commission payments and negotiate convenient way transfer of money. In addition, unlike other options, it is possible to directly exchange Belarusian currency for Bitcoin. The other side of the coin is the risk of running into a fraudster who will receive the agreed amount but will not transfer the money, as well as an unfavorable exchange rate for direct conversion. To reduce risks, it is important to work only with trusted private traders who have a high rating and a positive reputation.
Purchase via WebMoney
The WebMoney system has been operating in the territory of the Republic of Belarus for a long time and has an internal cryptocurrency Bitcoin (WMX). Essentially, this is the equivalent of 0.001 BTC. The guarantor of WebMoney in Belarus is Technobank, so the activities of the payment system are completely legal.
To buy for Belarusian rubles, you need to take the following steps:
- Register in the WebMoney system.
- We create an electronic wallet in national currency (WMB).
- We top up the account with Belarusian rubles.
- Change WMB to WMX.
- We exchange the received funds for Bitcoins through a Bitcoin wallet.
Buying futures
In December 2017, another way to buy Bitcoin was added - through (CME and CBOE). This option is more suitable for investors who do not need cryptocurrency itself, but consider it as a tool for savings. You cannot directly buy futures on the mentioned exchanges - for this there are brokerage companies that act as intermediaries. If you want to purchase a contract for Bitcoin, you need to select a broker, register, deposit money into your account, and then make purchases and sell futures, making money on the difference in rates. To make a profit in this way, you need to know the principle of operation of exchange platforms and the essence of futures contracts.
Intermediary services
After the legalization of Bitcoin in Belarus, special services(for example, bitok.by), offering services for buying/selling Bitcoin in different ways - through a bank card or WebMoney, as well as using cash. The client chooses suitable option, after which he submits an application and agrees on the time of the transaction. In fact, this is one of the options for direct exchange with the difference that the counterparty is a service specially created for this purpose. The benefits and risks are similar here.
What can you buy with Bitcoins in Belarus?
After the legalization of cryptocurrency, the virtual market of the Republic of Belarus came to life and the number of points accepting Bitcoin increased. To get accurate information about the points where cryptocurrency is accepted, you can use the coinmap.org service. Let's highlight some options that the system offers:
- Flower shop in Minsk- stability.by. The website says that payment is made using cash, by card and using any electronic money(including Bitcoin).
- geoteplo.by- Nova Gros company, specializing in engineering systems buildings.
- fasttech.com- online store household appliances and other goods, which has a representative office in Belarus.
- lorenzo.by- online store of kitchen sets.
What is Bitcoin?
The most popular and well-known cryptocurrency is Bitcoin. Cryptocurrency is a type of digital currency. The term cryptocurrency has been assigned to Bitcoin in 2011 after the publication of an article about Bitcoin in Forbes magazine. This system is decentralized, and currency is issued through mining and forging. The most common method is the so-called Bitcoin mining. The procedure is that Bitcoin is mined using the available computing power of your computer. That is why they are now buying up quite powerful video cards for computers in order to thereby mine cryptocurrency, including Bitcoin.
Bitcoin and legislation
At the moment, the concept of cryptocurrency (digital currency) is not in the legislation. Back in early 2014, the Deputy Chairman of the Board of the National Bank of Belarus said that Bitcoin has no legal basis for its use in the territory of the Republic of Belarus. The government warns that the use of cryptocurrency carries increased risks for individuals using this digital currency. Previously, the Ministry of Internal Affairs recommended refraining from transactions with bitcoins as individuals, and legal. The main thing that confuses the authorities is the lack of regulation at the legislative level in this area.
Why is Bitcoin not covered by our legislation?
Our legal experts are faced with a problem: how best to identify Bitcoin. If you look at our legislation, then legally there is no definition that covers the concept of cryptocurrency, which means that Bitcoin cannot be defined. Article 141 of the Civil Code defines what money is. money means the Belarusian ruble, which is legal tender, and foreign currency. Next, let us turn to the concept of foreign currency. In accordance with paragraph 4 of Article 1 of the Law “On Currency Regulation and Currency Control,” foreign currency means banknotes in the form of banknotes, treasury bills, coins, as well as funds in bank accounts in foreign currency units. It turns out that cryptocurrency does not fall under these concepts given in the legislation.
Exists similarity cryptocurrency and electronic money:
- The very fact of existence on the Internet
- Electronic money must be denominated in Belarusian rubles or foreign currency
- Possibility to pay for goods (services).
Main difference electronic money from cryptocurrency-el. money is issued by a bank accredited in the country, in accordance with the legislation of the Republic of Belarus, but cryptocurrency is not
Is it possible to use cryptocurrency as a means of payment?
In general, yes, it is possible, but there are a number of peculiarities. It is necessary to introduce the concept of cryptocurrency at the legislative level. Then establish the legal status. People will gradually get used to this type of payment means. The peculiarity is that there is no body in the country that is the issuer of this currency or somehow controls it. In addition, as we know, Bitcoin grows (falls) at incredible rates compared to any currency or security. For example, in some countries of the European Union, Bitcoin and other cryptocurrencies are already used as a means of payment. China has introduced a ban on the use of legal bitcoins in circulation. persons, but individuals do not have this prohibition.
Taxes and cryptocurrency in the Republic of Belarus
Since this currency does not relate to cash and does not exist in kind, in accordance with the legislation of the Republic of Belarus, the issue of cryptocurrency and transactions with it (crediting to one’s e-wallet) are not subject to taxation. This is because only income is subject to income tax. It is known from civil norms that income is an economic benefit expressed in cash or in kind. It turns out that when you mine Bitcoin you do not fall within the legal framework. It follows that income tax will be subject to income tax when you exchange Bitcoin for money or property.
The future of cryptocurrency in Belarus
Hooray! It's finished!
It became known that the draft decree “On the development of the digital economy” signed by the President of the Republic of Belarus.
This decree allows a lot to be done with cryptocurrencies: individuals are allowed to own, mine (mine), buy, sell, exchange for Belarusian rubles and foreign currency. It is also possible to give and bequeath digital currency. There is even an exchange for electronic money. Here the state provides ample opportunities for the development of cryptocurrency, which is good news.
Very important information!
In accordance with the decree, all transactions with cryptocurrency will not be taxed! At least until January 1, 2023 it will be this way.
The above means that soon it will be possible to pay with bitcoins everywhere and the list of organizations will be replenished. However, there are already a couple of such organizations that accept cryptocurrency as a means of payment. One of the first to start accepting it was the tire network service centers TYREPLUS.
To purchase bitcoin in Belarus, you will need to leave a request for home page site.
Creating an application
The application must include the following information.
When paying online, all payment information will be provided automatically in the application you create. For a cash transaction, we will contact you using the contact information you left to discuss the details of the transaction.
We accept applications from 10-20 Minsk time.
2. Ways to buy Bitcoin and other cryptocurrencies in Belarus
We offer the following methods for purchasing BitcoinLet's talk about each method in more detail.
1. Buying Bitcoin with cash
This method is the most popular and convenient for residents of large cities. All you need to do is submit an application in advance and agree on the date, time and location of the transaction.
Our courier will arrive at the appointed place and top up your Bitcoin account in front of you.
2. Bank payment
We accept bank payments from all CIS and EU countries. To purchase Btcoin through a bank, you will need to transfer funds to our account. After submitting an application for purchase, we will notify you of the amount and details for the transfer. The agreed terms are valid for 24 hours from the moment of their approval. That is, if you submitted an application to purchase 1 BTC today at 12:00, you must pay for the order no later than 12:00 the next day. Otherwise, the payment may be rejected by us upon receipt. Once you have made the payment, you can provide a photo/printout of the funds transfer receipt. From now on, we reserve funds for you. As soon as your transfer is credited to our account, we will transfer the funds to the account you specified.
*Bank transfer fee is paid by the client
3. ERIP
The ERIP payment system is very popular in Belarus and we could not help but include it in the list possible ways payment. If you have an online bank or kiosk nearby, this is an ideal way to purchase cryptocurrency. On our website there is detailed instructions how to buy bitcoin through ERIP
For clients with bank accounts in European Union countries, it is possible to purchase cryptocurrencies for EUR transfer via payment system SEPA. This payment is a regular bank transfer and is completely similar to the purchase process from a bank payment via SWIFT, described in paragraph 2. The key difference is the speed of transactions and the low cost of this operation.
5. Visa/MasterCard
To pay via Visa and Mastercard, you can use your online bank, ERIP, or online services and TUT.by When working with cards, you will need to undergo simple identification due to the increased risks of such operations.
3. Bitcoin deposit
And so, you have paid for the application and we are ready to transfer you bitcoins.
First, you create a wallet in Bitcoin and tell us its address. Wallet address example 32GWgJsnKwdS7tphdeKbkfFQgShnHNAtqz
If you are not familiar with the Bitcoin system and plan to use these funds as a user with the function of receiving and sending, then the best option is to open an account in the Blockchain.info system. This method will not require specific knowledge from you, and will also allow you to use the system as a PC and smartphone. Your wallet will always be with you. If the account has already been created, you give us the wallet address and we replenish it with the agreed amount. If the Bitcoin network is busy (lots of transactions taking place), then confirmation of the funds transfer chain may take several hours. Often the transfer is confirmed within an hour. You see the translation itself immediately after it is sent. If you have any questions, we will be happy to help you figure it out.
All exchangers presented in the list are ready to provide services for exchanging Cryptocurrency Bit Coin → Belarusbank card in automatic or manual mode. You need to pay attention to special labels, which are sometimes located next to the name of the exchange office. You can go to the website of any exchange office with a single click on the item with its name. If, after going to the exchanger’s website, you did not find the possibility of carrying out the operation, we advise you to immediately contact the site administrator. It is quite possible that at this time automatic exchange is not available and you will be offered an exchange manually. If it still didn’t work out to exchange Bit Coin cryptocurrency for Belorussia Bank, please let us know about this situation. We will take appropriate measures in a timely manner: discussing the reason with the owner of the exchange office, or removing the exchange site from the list of the current exchange direction.
It often happens that Bitcoin → Belarusbank rates are more interesting when you go to the exchanger’s website through our monitoring. If you have any difficulties exchanging electronic money, we recommend visiting the FAQ section and using detailed instructions by service.
Try to use the Calculator every time to verify the accuracy of the exchange made. Detailed Statistics on rates and reserves are always available to you. If you suddenly did not find a rate that suits you in the rating of exchangers, do not rush to exchange, use the Notification service and receive a notification about a favorable rate for you on Telegram or email. If there are no exchange offices, using the Double Exchange function you will find the best option for two exchanges through transit currency.
Reputation of exchangers
You can completely trust all exchangers presented by our service. The site contains only working and reliable exchange points that have been verified by our administrator. Each of them has a good foreign exchange reserve, high level BL, TS and long-term experience in electronic currency exchange.
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