This article highlights the issues of the activities of only legal entities in the field of cryptocurrencies in the Republic of Belarus. With the adoption of Decree No. 8 of December 21, 2017, it became clear that the concentration of all cryptocurrency activities will be around the Hi–Tech Park (hereinafter referred to as HTP) and only framework provisions were outlined, and details were expected throughout 2018. Finally, on 30.11.2018, HTP published the main package of documents fully regulating activities related to cryptocurrencies. Next, we will present a brief analysis of the provisions of this package of documents, which will be constantly updated as new information becomes available.
For those who plan to engage in cryptocurrencies in Belarus, we can offer our legal services from consulting to supporting the registration of a cryptocurrency exchange, exchanger or ICO provider.
Let's highlight the main important points:
Decree No. 8 of 21.12.2017 until January 1, 2023 provides the following tax benefits for legal entities of Belarus (both HTP residents and non-residents):
- No value added tax (VAT) on any turnover of cryptocurrencies (including when working with foreign legal entities);
- No income tax or simplified taxation system;
The procedure for joining the HTP with cryptocurrency activities.
In order to open a cryptocurrency exchange, a crypto exchange, to organize an ICO, it is necessary to become an HTP resident.
The process of joining the HTP includes the following stages:
- fulfillment of requirements for a legal entity, whether it is an exchange, an exchanger or a provider;
- development and submission of a business project;
- protection of the business project;
- waiting for the decision of the supervisory board.
The whole process takes approximately 4 months. Since not a single resident with these types of activities has been accepted yet, it is still possible to navigate by analogy with our article concerning the entry into HTP of ordinary residents without cryptocurrency.
- HTP resident status;
- Formed authorized capital in the amount of 2 million Belarusian rubles for the exchanger exchange, 500 thousand rubles for the ICO provider;
- Formed staff, which includes, in addition to a professional manager and accountant, the following officials responsible for: risk management; compliance with requirements to prevent money laundering; system administration and information security; compliance with the HTP regime. Several duties can be performed by one person.
- Any of the above employees or the founder has at least 1 year of experience in banking, insurance, stock exchange or cryptocurrency spheres;
- Completed audits of information systems and legal audit of documentation;
- Internal control system and risk management.