Belarus President Signs Legal Framework for 'Cryptobanks'

Source: CoinEdition Original Title: Belarus President Signs Legal Framework for ‘Cryptobanks’ Original Link:

Key Highlights

• Belarus formalizes cryptobanks, linking token services with core financial operations.
• Dual oversight by National Bank and High-Tech Park ensures compliance and innovation.
• Mining growth and stricter exchange rules aim to control crypto while boosting tech.

Overview

Belarus has taken another step toward formalizing its digital asset sector after President Alexander Lukashenko signed a new decree outlining how crypto banking will work in the country. On January 16, he approved Decree No. 19, titled “On cryptobanks and certain issues of control in the field of digital signs (tokens).”

The decree sets clear rules for companies that want to combine token operations with core financial services. Additionally, it reinforces Belarus’s ambition to position itself as a hub for financial technology across the region, while keeping tighter oversight on how digital assets move through the economy.

New Framework for Licensed Cryptobanks

The decree defines a cryptobank as a joint-stock company that can provide token-related services alongside banking, payment, and other financial operations. Hence, the model creates space for products that bridge traditional finance with token transactions.

Supporters of the approach expect faster processing and more flexible digital tools. However, Belarus still wants token services to run through firms that meet strict entry requirements.

To gain approval, a cryptobank must hold resident status in Belarus’s High-Tech Park. Moreover, the company must enter a formal cryptobank register maintained by the National Bank.

These steps introduce a screening process that limits market access to approved domestic entities. Consequently, Belarus can monitor token services more closely while still promoting innovation.

Dual Oversight Through the National Bank and High-Tech Park

Belarus will regulate cryptobanks through both financial and technological structures. Significantly, cryptobanks must follow rules that apply to non-bank credit and financial institutions. They also must implement decisions issued by the High-Tech Park’s Supervisory Board.

This dual approach aims to align compliance standards with product development. Additionally, it creates a pathway for token services to grow without weakening state control. Policymakers appear focused on balancing speed and convenience with financial risk management.

Mining Expansion and Broader Exchange Controls

The decree comes after Lukashenko urged the government to expand national crypto mining in March last year. Officials planned data centers in regions with excess energy capacity. Besides supporting mining growth, Belarus has also tightened exchange access.

Reports said the country blocked several major global exchange websites on Dec. 10, including certain trading platforms. Authorities linked the move to media law compliance requirements. Moreover, Belarus introduced rules on Sept. 20, 2024, limiting real-money crypto trading to domestic platforms registered in the High-Tech Park.