Belarus & the state of Blockchain...

A recent ruling in Belarus legalizes businesses based on Blockchain-technology, as well as any activity related to cryptocurrencies and digital tokens. Unlike in other countries, such as the US, China, Vietnam and Australia, that choose to place limitations, in Belarus mining and exchange operations are not treated as "business activities" and moreover, are not subject to being taxed. 

High-Tech Parks

For the purpose of creating and supporting innovative startups in the country, the government created the High-Tech Park (HTP), which becomes the mecca of the first national cryptocurrency operators.

Individual privileges are granted to organizations that are part of the HTP. They are exempt from value-added tax (VAT), income tax (corporate tax) and other types of tax. Only 1 percent of the turnover is a subject of taxation.

State of Blockchain

Belarus thus becomes the first country to provide detailed regulation of digital tokens, cryptocurrencies, ICOs, activity of cryptocurrency exchanges, and what is the most unprecedented - legislate smart contracts.

The privileges opened by the Decree may be seen really attractive for those who have already finished their ICO or just thinking about its launch. To conduct a full-fledged token sale, the company either must be registered on the territory of the Republic of Belarus and, accordingly, have an account with a Belarusian bank, or act through HTP operators, the so-called official cryptocurrency platforms.

And The Problem Is...

The main problem that exists is the question of how world banks would comply with international requirements for combating money laundering and financing of terrorist activities.

Identification of such transactions, performed with the use of bank payment cards by means of remote banking systems or the global computer network of the Internet and mobile communications, should be carried out at the next stage of control, which is also not available yet.

Despite the fact that international experts consider Belarus more favourable in terms of tax-free privileges, many projects that have already passed the way of tokenization or just those planning ICO are still concerned about the HTP. Moreover, within three months from the entry into force of the Decree, the National Bank of the Republic of Belarus can develop a regulatory and legal framework for additional regulation of the industry, which can contain significant edits.