Belarus has made a bold leap to encourage the use of cryptocurrencies. On December 21 2017, the President of Belarus signed into law “The Development of a Digital Economy” (“Law”). Since coming into effect on 22 March 2018, businesses based on blockchain technology have become legally regulated in the Republic of Belarus.
The new law defines the key terms of cryptocurrency business and explains the meaning of the terms cryptocurrency, virtual wallet, mining, token, and its other basic concepts. Bitcoin is recognised as a digital sign (token), used in international circulation as a universal means of exchange. Among other terms, the law permits individuals and legal entities to possess tokens, to buy and exchange tokens, and to conduct other related activities, subject to their registration in the innovation hub known as High Tech Park Belarus (HTP).
It is worth noting that the law grants various tax exemptions for individuals and legal entities residents of HTP dealing with mining and other activities using tokens. Namely, income from operations with tokens will not be considered as taxable for the purposes of personal income tax, corporate income tax and value added tax (VAT) until January 2023. It is also worth noting that resident companies of HTP are exempt from all corporate taxes, including VAT and profit tax, as well as customs duties.
By adopting this law, Belarus has become the most advanced country in Eastern Europe in terms of regulating cryptocurrencies. Coupled with the incentives available, it is also one of the most favourable jurisdictions for cryptocurrency-related businesses.
Clients interested in arranging an Initial Coin Offering (“ICO”), mining, and other cryptocurrency related activities under a transparent and predictable legal framework are advised to consider obtaining HTP residency in Belarus. Our team stands ready to provide assistance with a full range of services in this dynamic country.
For more information, feel free to contact:
Tax and Legal Advisor
T. +38 044 279 55 66