President orders clear cryptocurrency rules to attract investment, fight fraud and integrate digital assets
The president ordered the creation of clear rules for cryptocurrencies with the stated goals of bringing investment, combating fraud and managing the inclusion of digital assets in the national economy. The directive emphasizes defining institutional duties, control mechanisms and operational requirements to give certainty to firms and investors while maintaining state oversight.
Context and what is missing
Belarus has already implemented measures to support the digital economy, including incentives in technology zones and regulatory frameworks for blockchain projects and mining, but gaps remain. Key unresolved issues include tracing illicit funds, clarifying the responsibilities of crypto service providers and establishing clear mechanisms for repatriating capital from digital assets, and these uncertainties prompted the presidential order for a more comprehensive framework.
What the new rules must do
The stated objectives aim to establish effective control mechanisms and compliance protocols that detect and prevent misuse, while clarifying the roles of regulators and entities such as technology parks. The plan seeks to set explicit rules for licensing, reporting and administrative penalties to enable consistent oversight and reduce regulatory ambiguity for operators and investors.
Key elements to discuss
AML/KYC controls must be strengthened to better identify and monitor transactions in line with global standards and reduce the risk of money laundering. Institutional duties should specify which bodies maintain registers, issue licenses and enforce penalties to avoid overlapping responsibilities and legal uncertainty. Crypto payments and banks require careful conditions for accepting crypto payments and for creating specialized financial entities. Investor protection demands greater transparency from exchanges and custodians to lower the risk of fraud and asset loss.
Potential effects and the balance between oversight and decentralization
Clearer rules can attract capital and firms seeking predictability and improve the detection of illicit activity while facilitating the integration of crypto services into the formal economy, but greater regulatory certainty also carries the risk that heavy-handed controls could reduce operational freedom and encourage centralization. Regulatory design must combine transparency and safeguards against abuse without undermining the principles of decentralization that give value to the crypto ecosystem, and public policy needs to balance protecting the financial system and citizens with preserving financial independence and innovation.
The presidential order is an opportunity to modernize digital asset regulation in Belarus if the authorities adopt a framework that aligns technical standards, proportionate oversight and respect for new ideas, enabling a robust ecosystem while maintaining operational freedom and preventing abuse or secrecy.
