• Belarusian President Alexander Lukashenko in 2022 signed a decree allowing free circulation of cryptocurrencies like Bitcoin in the country.
• The foreign ministry of Belarus is drafting new legislation to outlaw peer-to-peer (P2P) cryptocurrency transactions of cryptocurrencies like Bitcoin.
• The authorities cited Belarus’ high rate of cybercrime and claimed that since the year’s beginning, local prosecutors have stopped 27 citizens from offering “illegal crypto exchange services.“

Background

Belarusian President Alexander Lukashenko in 2022 signed a decree allowing free circulation of cryptocurrencies like Bitcoin in the country.

New Legislation Outlaws P2P Crypto Transactions

The foreign ministry of Belarus is drafting new legislation to outlaw peer-to-peer (P2P) cryptocurrency transactions of cryptocurrencies like Bitcoin . On July 2, the Republic of Belarus’ Ministry of Foreign Affairs (MFA) made a formal announcement on Telegram regarding the new legislation that will outlaw peer-to-peer (P2P) cryptocurrency transactions for individuals.

High Rate Of Cybercrime Cited

Belarus cites high rate of cybercrime and claimed that since the year’s beginning, local prosecutors have stopped 27 citizens from offering “illegal crypto exchange services.” The total earning from illicit earnings totalled about 22 million Belarusian rubles ($8.7 million). According to the foreign ministry, cryptocurrency P2P services are “in demand among thieves who cash out and convert stolen funds and transfer money to criminal scheme organizers or participants.”

Cryptocurrency Exchange Only Through HTPs Allowed

The MFA will forbid individuals from P2P and only permit them to exchange cryptocurrencies only through cryptocurrency exchanges registered with Belarus Hi-Tech Park in order to eradicate such illicit activity (HTP). It also stated that it intends to implement a practice that will make it “impossible to withdraw money obtained from illegal activity,” similar to the process for exchanging foreign currencies.

Conclusion

In an attempt to reduce cybercrime, Belarus has announced draft legislation which would ban its citizens from engaging in peer-to-peer crypto transactions while only allowing exchanges through HTPs registered with their government.