Belarus is reportedly in the process of amending its cryptocurrency regulations to include a ban on the exchange of cryptocurrencies between individuals, in an effort to combat the rise in crypto-related fraud. The Belarusian Internal Affairs Ministry has issued a statement explaining that such transactions are often utilized by fraudsters to cash out and convert stolen funds, as well as transfer money to individuals involved in criminal organizations.
According to a recent report, Belarus has already apprehended 27 individuals this year who were involved in illegal cryptocurrency transactions, with the total amount linked to these transactions reaching 22 million Belarusian rubles ($8.8 million). In order to address this issue, the new regulation will restrict crypto transactions to the Belarus Hi-Tech Park (HTP) exchanges, with the aim of enhancing transparency and control.
The HTP is a specialized IT hub in Belarus that benefits from a unique tax and legal framework. In 2018, Belarus legalized various crypto-related activities, including mining and trading, but limited them to entities registered under the HTP. With the new regulation, only transactions conducted within the HTP will be permitted, ensuring better oversight and regulation of the crypto industry within the country.
The Belarusian government has been actively working to combat illegal cryptocurrency operations. In April of last year, the Justice Ministry introduced a legal procedure allowing for the seizure of crypto funds as part of law enforcement proceedings. Additionally, President Alexander Lukashenko ordered the establishment of a special register to monitor crypto wallets being used for illicit purposes.
By tightening its control over the cryptocurrency market, Belarus hopes to protect its citizens from falling victim to fraudulent activities while also maintaining the integrity and reputation of its financial system. The implementation of stricter regulations is expected to play a crucial role in reducing crypto-related fraud and ensuring a secure environment for legitimate cryptocurrency transactions.
Furthermore, it is worth acknowledging that Belarus is not the only country taking measures to regulate the cryptocurrency industry. Russia, for example, has also expressed its intention to legalize cryptocurrencies, recognizing the need for a comprehensive regulatory framework to ensure the safe and responsible use of digital assets.
In conclusion, Belarus is amending its crypto regulations to prohibit the exchange of cryptocurrencies between individuals, citing the rise in fraud as the main reason behind this decision. The new regulations will confine crypto transactions to the Belarus Hi-Tech Park exchanges, which offer stricter oversight and control. By implementing these measures, Belarus aims to minimize the risk of fraudulent activities in the crypto market and safeguard its financial system.
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