Belarus is preparing a partial ban on cryptocurrencies!

The air is hot in Belarus!

Exciting developments in the world of cryptocurrencies are taking shape as the country's government moves to ban peer-to-peer (P2P) cryptocurrency services in a bid to combat money laundering and illegal transfers.

According to an announcement by the Interior Ministry on Sunday, the restrictions targeting P2P platforms are motivated by the increasing use of these services for money laundering and other illegal financial activities.

P2P transactions, which allow for direct user interaction, are particularly attractive to malicious actors due to the lack of regulatory oversight provided by stock exchanges.

During the year, the Ministry's cybercrime teams have already busted 27 illegal cryptocurrency exchanges, who have made a total of nearly $8.7 million in illicit profits.

The government is now considering a legislative framework that would restrict crypto transactions to licensed exchanges, making it more difficult for illegal money withdrawals to take place.

The Ministry of Interior is already working on a legislative innovation that would ban crypto transactions between individuals and only allow financial transactions involving cryptocurrency on exchanges under the High Technology Park (HTP).

Meanwhile, Belarus remains open to the integration of cryptocurrencies into its economy, and has also been recognised as one of the top 10 cryptocurrency tax-friendly nations by blockchain analytics firm Glassnode.

The newly proposed legislation would exempt from taxation both individuals and businesses engaged in crypto transactions, encouraging the growth of the IT industry and the development of the digital economy. In the meantime, however, the government is keeping a close eye on abuses of P2P crypto money services and is taking strong action against illegal activities.

This dual approach – promoting cryptocurrencies and tightening regulation – shows that the Belarusian government is committed to developing the digital economy while trying to preserve the integrity and security of the financial system.

We can expect further developments in this area in the future, as the government continues to look for the best ways to take advantage of cryptocurrencies while minimising the risks they entail!