Belarus Moves to Create Legal Framework for Crypto Banks

Belarus has officially taken significant strides to integrate digital assets into its financial landscape. President Alexander Lukashenko has signed a decree that lays the groundwork for establishing legal frameworks for crypto banks, as reported by the Belarusian state news agency, BELTA.

Key Takeaways

President Lukashenko signed Decree No. 19, creating a legal framework for crypto banks in Belarus.
Crypto banks are defined as joint-stock companies that can combine traditional banking and digital token operations.
They must operate from Belarus’s High-Tech Park and be registered with the National Bank of Belarus.
A dual regulatory oversight system will oversee the operations of crypto banks, ensuring innovation aligns with regulatory standards.
The decree supports Belarus’s goal to become a leader in fintech by providing structured legal support for digital assets.
President Lukashenko is also promoting crypto mining as a strategy to reduce reliance on the dollar.

Central Bank Digital Currencies (CBDCs)

On January 16, President Lukashenko enacted Decree No. 19, titled “On Crypto Banks and Certain Issues of Control in the Sphere of Digital Tokens.” This regulation aims to position Belarus as an innovative hub for financial technology while ensuring that crypto banking activities are conducted under established guidelines.

Defining Crypto Banks Under Belarusian Law

The decree establishes a formal definition of a crypto bank as a joint-stock company allowed to operate both digital token activities and traditional banking services. This new framework enables these banks to integrate blockchain technologies into their financial offerings.

To qualify as a crypto bank, an entity must have resident status within Belarus’s High-Tech Park (HTP), a special economic zone aimed at attracting tech and innovation industries. Furthermore, they must register in a dedicated crypto bank registry managed by the National Bank of Belarus.

Dual Regulatory Oversight Introduced

BELTA indicates that crypto banks will operate under a dual regulatory framework. They are required to conform to regulations governing non-bank credit and financial institutions while also following directives from the Supervisory Board of the High-Tech Park.

This two-tier regulatory system is designed to foster innovation in digital finance without compromising oversight. Authorities believe that this framework enables crypto banks to offer advanced technological services while upholding regulatory standards akin to those for conventional financial institutions.

Blending Traditional Banking and Digital Assets

Officials highlight that this decree is meant to empower crypto banks to provide clients with a hybrid range of financial products that merge the benefits of traditional banking with the speed and efficiency of token-based transactions.

With these updated rules, crypto banks can support digital asset operations alongside conventional banking services, thus serving as intermediaries between the established financial sector and the emerging digital asset economy.

Belarus’s Fintech Ambitions

This legislative move aligns with Belarus's long-term goal to emerge as a leader in fintech development. Since the inception of the High-Tech Park, the nation has aimed to attract blockchain and cryptocurrency companies by creating favorable legal and tax frameworks.

By formalizing a model for crypto banking, Belarus intends to move from trial-and-error phases of cryptocurrency to a more organized financial ecosystem that integrates digital tokens into regulated banking practices.

Belarus Prioritizes Crypto Mining

In November, President Lukashenko identified crypto mining as a crucial strategy for reducing global dollar dependency and announced plans for aggressive expansion during a government meeting focused on energy policies.

This directive builds on earlier intentions to exploit the country's surplus nuclear power for competitive advantages in digital asset production. As global trends push toward de-dollarization, Lukashenko has reassured stakeholders about the stability of cryptocurrency markets, framing them as essential to the international movement for alternative monetary systems.