Belarus Moves to Allow Investment Funds to Acquire Crypto Assets

Belarus Moves to Allow Investment Funds to Acquire Crypto Assets

The crypto-friendly nation of Belarus is preparing to permit investment funds to put money into digital currencies. A proposal to do so is part of a package of necessary legal changes tailored to attract such institutions to the country. Finance Ministry Takes Steps to Facilitate Crypto Investments in Belarus

Amendments aimed at luring investment funds to Belarus have been published by the Ministry of Finance for public consultations. Despite having in place a regulatory framework for collective investments, not a single fund has been registered in the country so far, the department noted in its motives for the initiative.

One of the main reasons for the absence of such funds is that they are currently prevented from investing in crypto assets, representatives of professional circles have pointed out. The market for “digital signs (tokens),” the legal term used to describe cryptocurrencies, has been growing at a fast pace, the finance ministry has acknowledged.

To lift the restrictions, the ministry has drafted a resolution amending its own decree on activities in the securities market pertaining to investment funds. It plans to allow the funds to simultaneously operate as securities dealers and residents of the Belarus High-Tech Park (HTP). The latter manages a special legal regime established to facilitate the country’s digital economy, including the crypto sector.

Another concern expressed by professionals is the absence of long-term guarantees from the government regarding the existing tax cuts for the industry. To address the issue, the Ministry of Finance has put forward new provisions which will extend the tax exemptions for entities working with collective investments until Jan. 1, 2031.

Belarus opened its doors to crypto businesses with a decree “On the development of the digital economy” which went into force in the spring of 2018. The document, signed by President Alexander Lukashenko, introduced tax breaks and other incentives for companies dealing with digital assets.

Despite Lukashenko hinting last March at a possible tightening of the regulations, Belarusian officials have more recently indicated that the authorities in Minsk have no intentions of adopting stricter rules for the crypto space, even as the country’s closest ally, Russia, is discussing a proposal to ban a range of crypto-related activities.

While using cryptocurrency as a means of payment is prohibited in Belarus, HTP residents can issue and exchange coins and tokens and the country’s largest bank offers a service allowing users to buy and sell digital currencies. The crypto adoption index by Chainalysis ranks Belarus third in Eastern Europe, after Russia and Ukraine, due to strong peer-to-peer activity. Tags in this story amendments, Belarus, belarusian, Changes, Coins, Crypto, crypto assets, Cryptocurrencies, Cryptocurrency, Decree, Digital Assets, Digital Currencies, Digital Currency, investment, investment funds, Investments, Legislation, Proposals, Regulation, Regulations, resolution, Tokens

Do you expect Belarusian authorities to adopt the proposed changes and allow investment funds to work with cryptocurrencies? Tell us in the comments section below. Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration. Federal Reserve Bank of Boston and MIT Release Central Bank Digital Currency Research and Open-Source Code REGULATION | 9 hours ago SEC Commissioner: New Proposal Could Give SEC Expansive Power to Regulate Crypto, Defi Platforms REGULATION | 1 day ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleMetaverse Real Estate Sales Expected to Reach $1 Billion This Year Next articleKonami to Keep Selling NFTs to ‘Preserve Content’ Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItJPMorgan Lowers Its Bitcoin Fair Price Estimate to $38K Amidst Volatility

Leading investment bank JPMorgan has changed its view on the estimate of bitcoin"s price on a long-term basis. The institution had estimated a long-term price of $146K back in November when bitcoin was over $60K. One of the most important ... read more.Blockchain and Cryptocurrency Is "Here to Stay and Impossible to Regulate at Large" — CEO of a United Arab Emirates Based Bank Report: Nvidia’s Lite Hash Rate Tech to Stop Crypto Miners "Was Pointless" Russian Government Drafts Roadmap to Regulate, Not Ban Crypto, Report Unveils Ubisoft Executive Thinks Players Reject NFTs Because They Don"t Understand Benefits