After earlier announcements in July, Belarus legalizes cryptocurrencies, ICOs and smart contracts. How will the new Belarusian law benefit the cryptocurrency market?
25 December, AtoZForex – The Belarusian government passed a law on the regulation of digital tokens, cryptocurrencies, ICO’s and smart contract on the 22nd of December 2017. It is the first law to be implemented by any government regarding cryptocurrencies and ICOs.
This strategic move could attract foreign investors, private sector growth in the country and forbid dependencies on its neighbor Russia’s money and subsidies.
Belarus legalizes Cryptocurrencies, ICOs and Smart Contracts
The primary goal of the Belarus government’s new law is to get the global IT companies to open representative offices and development centers in the country. The decree grants tax exemptions concerning activities connected with the ICOs and cryptocurrencies.
Also, norms will be introduced into local IT legislation: English law institutes for startups to 0% corporate tax, VAT-free, reduced personal income tax and other perks for IT companies until 2049. Alexander Lukashenko commented that:
“The second goal of the document is to invest in the future. These are IT workers and education. The third goal is the application of cutting-edge financial instruments and technologies. Leading economies of the world are now familiarizing themselves with this new phenomenon.
In fact, Belarus becomes the first state in the world which opens up broad opportunities for the use of the blockchain technology. We have all opportunities to become a regional center of competence in this field.”
Moreover, the Belarusian government declares the cryptocurrency and ICO trades to be tax-free for the next five years. Also, the traders can store, change, buy, donate and mine cryptocurrencies for fiat currencies. Additionally, traders don’t necessarily need to declare the cryptocurrency incomes and profit as it is tax-free until January 1, 2023.
New Benefits for HTP Residents
Belarus High Technologies Park (HTP) is an exclusive economic zone with an exceptional tax and legal regime. The order further establishes a legitimate direct link between token issuers and their obligations towards its holders. To protect against fraud and illegality, it sets the capital requirement for cryptocurrency exchange operators, while introducing smart contracts in the country.
Moreover, the IT sector is one booming in Belarus, as it attracts foreign workers who work for about five times the country’s average wage in its so-called Hi-Tech Park. It’s arguably the most prominent sector of the country’s economy, which is set to grow by 1.7 percent this year.
The law will reportedly consider cryptocurrencies as other asset and introduce possible limits on individual ICO, cryptocurrencies and smart contract investments.
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