The Belarusian Ministry of Foreign Affairs is taking steps to introduce legal amendments that would prohibit peer-to-peer (P2P) transactions involving cryptocurrencies like Bitcoin (BTC). In an official announcement on July 2, the ministry revealed its plans to ban P2P crypto exchanges for individuals in an effort to combat the high cybercrime rate in Belarus.
According to the ministry, local prosecutors have already cracked down on the activities of 27 citizens who were providing illegal crypto exchange services since the beginning of the year. These individuals collectively earned almost 22 million Belarusian rubles ($8.7 million) through their illicit operations. The ministry argues that P2P crypto services are commonly used by fraudsters to convert and transfer stolen funds, making them an attractive option for criminals involved in various criminal schemes.
To address this issue, the ministry intends to restrict individuals from conducting P2P transactions and will only allow them to exchange cryptocurrencies through exchanges registered with Belarus Hi-Tech Park (HTP). The aim is to enhance transparency and control by channeling all financial transactions related to crypto through regulated exchanges. The ministry confirmed its intent, stating, “The MFA is working on legislative innovations that prohibit crypto exchange transactions between individuals. For transparency and control, citizens will be allowed to conduct such financial transactions only through the HTP exchanges.”
Additionally, the ministry plans to implement a procedure similar to foreign currency exchange regulations to make it “impossible to withdraw money obtained from illegal activity.” By creating unfavorable conditions for information technology fraudsters, the ministry hopes to discourage their operations in Belarus.
Upon hearing the news, some cryptocurrency enthusiasts have expressed doubts about the effectiveness of the government’s ban on P2P crypto trading. One observer on Twitter sarcastically wished the government “good luck enforcing it.” This skepticism is not unwarranted, as banning P2P trading is a challenging task, if not impossible, as highlighted by Samson Mow, CEO of Jan3. Mow pointed out that despite China’s ban on all crypto transactions for users, many Chinese individuals still use P2P channels to exchange their cryptocurrencies.
Interestingly, the recent move by Belarus seems contradictory to its previous legislative efforts supporting cryptocurrencies. In 2022, Belarusian President Alexander Lukashenko signed a decree affirming the country’s support for the free circulation of cryptocurrencies, including Bitcoin. This discrepancy raises questions about the rationale behind the new amendments and their potential impact on the country’s crypto-related activities.
In conclusion, the Belarusian Ministry of Foreign Affairs aims to tackle the issue of cybercrime by introducing legal amendments that would prevent individuals from engaging in P2P transactions involving cryptocurrencies. The ministry believes that restricting P2P exchanges will curb the activities of fraudsters who exploit such services for money laundering and illicit fund transfers. However, doubts have been raised regarding the feasibility of enforcing this ban, given the decentralized nature of cryptocurrencies and the existence of alternative channels for P2P trading. The new amendments also appear to contradict previous legislation endorsing the free circulation of cryptocurrencies in Belarus. Only time will tell how effective these measures will be in combating cybercrime and regulating crypto transactions in the country.
Source link
