Belarus is poised for a significant shift in its digital asset landscape as President Aleksandr Lukashenko issues a firm mandate for a comprehensive overhaul of its crypto regulations. Citing severe economic risks and investor protection failures, the government is being pressed to implement robust measures that align with the rapid evolution of the "digital life."
Driving Forces Behind Regulatory Tightening
The President's directive stems from alarming findings by a state audit, which revealed that approximately half of all Belarusian citizen investments channeled into foreign crypto platforms never return. This substantial capital outflow, coupled with identified violations in the financial operations of domestic platforms, has fueled concerns that the current, lax oversight is actively undermining both national economic interests and the security of individual investors. Lukashenko sharply criticized his administration for allowing the digital economy to outpace the legal framework, stressing the urgency of the situation.
Forging a New Regulatory Framework
While Belarus has a pre-existing legal foundation for digital asset activity under the Hi-Tech Park's Ordinance No. 8, designed to foster the IT sector, Lukashenko has declared it insufficient. He revealed that calls for a comprehensive regulatory framework date back to 2023, yet no binding legislation has materialized. The upcoming changes are expected to involve a greater role for traditional state agencies in overseeing the sector. The proposed measures aim to establish transparent rules for market participants, incorporating safeguards to ensure funds remain within the country, while simultaneously striving to maintain Belarus's status as a "digital haven" for legitimate local and foreign businesses. With the President's clear ultimatum, a period of intensified state scrutiny and significant regulatory evolution for the Belarusian crypto industry appears imminent.
