Belarusian central bank drafts rules permitting crypto payments

Bitcoin has just become a “very important topic” in Belarus, as its powerful leader is now calling for regulations that will facilitate cryptocurrency payments.

The monetary authority in Minsk is ready with the necessary changes to produce “breakthroughs” in utilizing cryptocurrencies, including for payments under sanctions.

Belarus aims for ‘crypto breakthroughs’

The National Bank of the Republic of Belarus (NBRB) has drafted legislative amendments that will allow the country to secure “breakthrough results in the usage of cryptocurrencies,” the official BelTA news agency reported, quoting its governor.

Roman Golovchenko, chairman of the bank’s board, made the announcement following a meeting with Belarusian President Alexander Lukashenko on Tuesday, to whom he reported on the present state of the nation’s banking system.

The central bank’s chief executive described the topic as “very important,” referring to the expanding domestic crypto market, currently represented mainly by exchanges registered as residents of the Belarus Hi-Tech Park (HTP).

The latter is a special legal regime that provides preferential treatment to companies from various sectors in the IT sphere, including tax exemptions. It is governed by Decree No. 8 “On the Development of the Digital Economy,” which was signed by Lukashenko at the end of 2017.

The document legalized crypto-related activities such as mining and trading, when it went into force the next spring, and opened the doors of the HTP to businesses dealing with digital assets.

In a statement after the meeting with the Belarusian strongman, Golovchenko highlighted that the turnover on these platforms “grows rather confidently and demonstrates solid figures,” remarking:

“Cryptocurrencies are here to stay. This is why it is necessary to very correctly and timely get ourselves integrated into this mainstream.”

Golovchenko, who was recently appointed NBRB governor after serving as prime minister of Belarus, suggested the provisions of the presidential decree need an update as the application of cryptocurrencies and other digital financial assets has broadened since their adoption.

He emphasized this is not just in terms of new regulation to prevent damages for the rest of the country’s economy, and elaborated:

“We have certain proposals on how to achieve some breakthrough results from the point of view of engaging cryptocurrencies and digital financial assets as part of our financial policy.”

The Belarusian head of state supported the central bank’s initiatives. They will be reviewed in detail at a dedicated conference in the near future, Roman Golovchenko unveiled.

Lukashenko impatient on crypto payments

During the meeting with his central bank governor, the Belarusian president specifically inquired about crypto regulations and suggested considering further measures regarding the cryptocurrency space.

“Crypto market, cryptocurrency… What is it and how are we going to proceed?” Alexander Lukashenko was quoted by BelTA as asking Golovchenko. He also insisted:

“How can we use it, especially now, to facilitate payments? There has been a lot of talk about this, yet Belarus’ cryptocurrency market remains underdeveloped. What will our next steps be?”

Lukashenko then reminded that this had been discussed already with the National Bank’s previous chairman, Pavel Kallaur.

“We raised this issue before. IT specialists approached us, saying we should take action in this direction. So, how will we proceed? This is important for me and for the country,” the longtime Belarusian leader stressed.

Lukashenko’s statements come after Russia, of which Belarus is the closest political and military ally, introduced a special “experimental legal regime” for cryptocurrency transactions.

The arrangement’s main purpose is to facilitate cross-border crypto payments for Russian companies amid heavy Western sanctions imposed over the invasion of Ukraine. These have severely restricted their access to global markets and traditional financial channels.

Minsk, which now seems to be moving in the footsteps of Moscow, in terms of finding ways to utilize cryptos in foreign trade, has been the subject of similar international penalties for its involvement in the bitter conflict on Russia’s side.

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