Belarus Turns Crypto-Friendly, Legalizes ICOs and Cryptocurrency Payments
In a bid to attract foreign investment and give a boost to its local businesses, Belarus government has now decided to legalize cryptocurrency payments and Initial-Coin-Offerings (ICOs). With cryptocurrencies entering the mainstream market, Belarus government seems to have confidence over the future growth of cryptos as country president - Alexander Lukashenko - signed a decree on Friday.
As per the order signed, cryptocurrency enthusiasts contributing to the economy of Belarus will get legal incentives and tax breaks. The country aims to embrace the new blockchain revolution and push the country towards making Belarus a tech haven. Anton Myakishev, the head of Microsoft’s offices in Belarus, told Reuters that “the decree is a breakthrough for Belarus” which will give a big push to the industry with the “possibility to make a leap forward in its development.” He further said that this decision will allow more foreign players to comfortably participate and contribute to the country’s economy.
In addition to providing an exemption of regulatory scrutiny over ICOs and cryptocurrencies, the decree also offers some attractive incentives to entrepreneurs and will exempt all the revenue and profits from all operations involving cryptocurrency activities like trading and mining, for the next five years. The law states “Turnovers, profits (income, proceeds) from various operations with tokens are not recognized as taxable items until January 2023.”
In a statement, Lukashenko, a former collective farm manager said “Belarus will become the first government in the world that opens wide opportunities for the use of blockchain technology (…) We have every chance of becoming a regional center in this area.”
Lukashenko said that the major purpose of signing the decree is to open the entrepreneurial gates for foreign investors who have found it difficult so far to operate within the country’s existing legal system. Such a move is also expected to give local business a big boost.
The IT business in Belarus is thriving as it attracts many foreign workers who usually get paid five times the average income in the country. The country’s Hi-Tech park is one of the most preferred destinations for foreign nationals.
Vsevolod Yanchevsky, head of the Hi-Tech Park, during an interview, said: “The decree has been written exactly the way our tech community wanted it. Belarus will be one of the best jurisdictions in the world for cryptocurrencies and blockchain.”
This move by Belarus has influenced Russia. Russia too is expected to release a similar draft this week ahead.