This article highlights the issues of cryptocurrency mining (creation of specialized data centers) in the Republic of Belarus, including for foreign investors.
Decree №8 of 21 December 2017 and law-enforcement practice speaks about the following procedure for working with Mining in Belarus:
- For individuals. It is possible to work directly on their home plots or apartments. When exchanging cryptocurrencies to fiat in the future, tax authorities and banks will require confirmation of the legality of the activity, namely electricity bills and equipment contracts.
- For legal entities (companies). Exclusively after joining the Hi-Tech Park. Before joining the Hi-Tech Park, only equipment adjustment is allowed.
The procedure for legal entities intending to engage in mining is as follows:
- Evaluate the profitability of mining in the Republic of Belarus;
- Create a legal entity;
- Find a suitable room with an appropriate electric current supply or organize the construction of an electrical substation;
- Purchase or import mining equipment (ASIC or video card);
- Find the right professionals.;
- Join the Hi-Tech Park and prepare a business project;
It is worth noting that the President of the Republic of Belarus himself urged citizens to engage in mining. According to numerous testimonies, private individuals have long successfully mastered this industry. This was supported by low electricity tariffs for the private sector (3-4 dollar cents per kilowatt hour), as well as the absence of income tax on such transactions. It should be noted that until recently the creation of farms and data centers by large mining companies has been going at an insufficient pace.
Nevertheless, our company Borius Consulting LLC is already supporting a large project, and we hope that the arrival of other players on the Belarusian market will not be long in coming for the following reasons:
- The cost of electricity for legal entities engaged in mining in the Hi-Tech Park was radically revised by Resolution 62/57 of the Ministry of Energy. So the new tariffs for an annual purchase of more than 25 million kilowatt / hour will be in the region of five dollar cents (12 Belarusian kopecks),
- You can bring and clear ASIC miner equipment or video cards at zero VAT and customs tariffs after joining the Hi-Tech Park.
- Taxes within the Hi-Tech Park amount to 1% of revenue and 5% on dividends. There are also favorable working conditions for employees.
In this article, we will not cover this article too much, since materials on opening a company have already been posted on our website. Foreign legal entities and individuals can freely be founders. The registration period, depending on the jurisdiction of the founder, is up to 5 working days.
Find a suitable room.
In Belarus, there are enough offers with suitable premises (electric current 150-300 kilowatts / hour). It is possible to rent only for your company or rent part of the premises together with other companies already engaged in mining.
It is possible to build your own electrical substation, in this case, the time will take around 2-3 months to obtain permits and construction according to standard projects.
Purchase or import equipment
As we mentioned earlier, the import of equipment is possible at zero rates within the framework of the Hi-Tech Park. Nevertheless, customs clearance may be complicated by the notification procedure, which is typical for the newest types of equipment or rare modifications. There are no such difficulties for common ASIC models and video cards. You can consult us on these issues. It is also possible to purchase equipment on the domestic market.
Find the right professionals.
There are enough specialists with experience in mining on the Belarusian labor market as this industry has been developing since 2018. We can provide assistance in this matter. It is possible to hire foreign citizens, in particular, the Hi-Tech Park regime allows the company's employees to cross the Belarusian border completely without a visa and without quarantine and to live in Belarus without any complicated procedures. In addition, it is necessary to take care of the correct work with accounting. in turn, we are ready to provide accounting services in accordance with the resolution of the Ministry of Finance "National Accounting and Reporting Standard "Digital Signs (Tokens)"
Join the Hi-Tech Park
It is prohibited to engage in mining activities for legal entities (companies) without obtaining the status of a resident of the High-Tech Park (HTP). In addition, the current HTP residents, without designating their activities as mining in a business project, also cannot engage in it. The process of joining the Hi-Tech Park takes up to 3-4 months and can go in parallel with the stages described above. We already have experience in supporting the company and developing a business project for joining the Hi-Tech Park. You can read more about how to join the Hi-Tech Park in other articles on our website.
The cost of support services for the opening of a company with mining activities - from $ 3,000.