On December 21, 2017, the President of Belarus signed the law “On the Development of a Digital Economy” (“Law”). After its entry into force on March 22, 2018, businesses based on blockchain technology will become legally regulated in Belarus.
The Law defines the key terms of cryptocurrency business, explains the meaning of the terms cryptocurrency, virtual wallet, mining, token and other basic concepts thereof. Bitcoin is recognized 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 a virtual high-tech park in Belarus - High-Tech Park (“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 PIT/CIT and VAT until January 2023. Worth noting is also the fact 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, the Republic of Belarus has become the most advanced country in Eastern Europe in terms of regulating cryptocurrencies. Coupled with the incentives available, it is also currently 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.