Belarus creates legal framework for ‘cryptobanks’ in new presidential decree
In a significant development for the cryptocurrency landscape, Belarus has introduced a legal framework that enables the establishment of 'cryptobanks' through a new presidential decree. This initiative aims to integrate cryptocurrency-related activities with traditional banking services, allowing financial institutions to offer a broader range of services under the supervision of both the central bank and designated technology parks.
The decree facilitates the combination of token operations with payment services, enhancing the capabilities of banks to operate within the digital asset space. This regulatory framework is designed to foster innovation while ensuring compliance with existing financial regulations, thereby creating a more secure environment for cryptocurrency transactions.
Under this new regulation, banks will have the authority to engage in a variety of activities related to digital tokens, including their issuance and trading. It also outlines the responsibilities of financial institutions in monitoring and managing these operations to mitigate risks associated with fraud and money laundering. By establishing clear guidelines, the Belarusian government aims to attract investment and stimulate growth in the burgeoning crypto sector.
The decree is part of a broader strategy to position Belarus as a competitive player in the global fintech arena. By facilitating the integration of cryptocurrency into mainstream finance, the government seeks to harness the potential of blockchain technology and digital currencies to boost economic development.
Additionally, the framework emphasizes collaboration between financial institutions and technology parks, which are expected to serve as incubators for innovative crypto-related projects. This partnership aims to leverage technological advancements while ensuring that regulatory standards are upheld.
As countries around the world continue to navigate the complexities of cryptocurrency regulation, Belarus's proactive approach may serve as a model for other nations looking to embrace digital assets within their financial systems.
Key Takeaways
- Belarus has enacted a presidential decree to establish a legal framework for 'cryptobanks'.
- The new rules allow banks to combine cryptocurrency activities with traditional financial services.
- Financial institutions will operate under the oversight of the central bank and tech parks to ensure compliance and innovation.
- This initiative aims to position Belarus as a competitive player in the global fintech sector.
This article was inspired by reporting from CoinTelegraph. · Report an issue