The European nation has become the latest to roll out regulation for the crypto industry following signed documents released by a special unit in the country know as Belarus High-Technologies Park (HTP).
The Belarus High-Technologies Park (HTP) is the country's version of Silicon Valley and the chief initiator of technological reforms in the country. It is this community that the Belarusian government gave the power to enact laws for the crypto industry in collaboration with some regulators.
Nov 30, the Belarus HTP released five documents that will serve as “a complete legal regulation of cryptocurrency in Belarus.” The papers cover nearly every niche of the crypto industry and have been duly approved by the relevant authorities.
A local news source, dv.by puts it this way,
“The cryptocurrency activities of the HTP residents received full comprehensive legislative support from the regulator. The HTP administration, together with the National Bank, the Financial Monitoring Department of the State Control Committee, international experts and other bodies, compiled and signed all the necessary documents.”
Key Points From The New Belarusian Framework For Crypto Industry
While most countries of the world have found it difficult to understand the crypto industry or create some sort of regulation, there is much to glean from the latest rules unveiled today in Belarus.
One of the major highlights of the regulation is that the HTP will now be in charge of assessing whether a startup is fit to join the crypto industry in Belarus. The rule states that the HTP will have to check essential facts such as the reputation and financial capacity of the firm and its founders, the source of their assets and how they are implementing cybersecurity measures on their platform.
Additionally, the regulation stipulates how much capital an entity should have before operating in the Belarusian crypto space. For ICOs, it specifies at least a minimum requirement of 500,000 Belarusian rubles ($234,543.60) while other crypto-related businesses will have up to 2 million Belarusian rubles ($938,174.40) to operate.
The firms will also have to comply with financial laws such as Anti-Money Laundering (AML) and Know-Your-Customer (KYC) procedures. They will also meet up to standards verified by any of the Big Four auditors.
With no more than necessary required from crypto-businesses in Belarus from now on, it is expected that the country's crypto ecosystem experience massive growth in the coming months.
With the latest news, Belarus have joined European neighbors Malta and Switzerland as the first nations to create any sort of regulation for the industry.
France is another European nation that could join if the state completes and release a framework for ICOs early next year as expected.