Belarus Compliance Report

Generated 2026-09-22

Comprehensive Framework

Regulatory Overview

Regulatory Status: Dedicated crypto/VA legislation, licensing regime, active enforcement
Key Regulator(s): HTP Administration, Financial Monitoring Department of the State Control Committee of the Republic of Belarus, Investigative Committee of Belarus
Primary Legislation: Presidential Decree No. 8 (2017) initially legalized cryptocurrencies and set a, Decree No. 8's Stance: The decree itself does not explicitly detail strict segre, Decree No. 8 specifically mandates compliance with AML/CFT legislation. This inc, This is the primary legal act. Finding an official English translation can be ch, Law of the Republic of Belarus No. 1-FK “On Prevention of Money Laundering” (201
Travel Rule: Adopted — Threshold: Implemented
Tax Reporting: Exemption until January 1, 2028: For individuals, income derived from mining, acquisition (including purchase, exchange), alienation (including sale, exchange, donation), and inheritance of "tokens" (which include cryptocurrencies, utility tokens, and security tokens as defined by Decree No. 8) is exempt from personal income tax.. This means that individuals making profits from trading, selling, exchanging, or even inheriting crypto do not pay capital gains tax or personal income tax on these gains in Belarus until the specified date.. Legal entities that are residents of the Hi-Tech Park (HTP) benefit from significant tax incentives related to crypto activities.. Profits from activities related to the creation, acquisition, and alienation of tokens (including mining, exchange operations, and other crypto-related services) are exempt from corporate income tax until January 1, 2028.. HTP residents also enjoy other benefits, such as reduced social security contributions for employees and certain VAT exemptions on services rendered to foreign customers.

Key Facts

aml Decree of the President of the Republic of Belarus No. 8 "On the Development of the Digital Economy" dated December 21, 2017 (as amended): This foundational decree legalizes and regulates activities involving digital tokens (cryptocurrencies) for Hi-Tech Park residents, including exchanges, initial coin offerings (ICOs), and other related services. It explicitly mandates that HTP residents engaged in these activities must comply with AML/CFT legislation. Law of the Republic of Belarus No. 165-Z "On Measures for Preventing the Legalization of Proceeds from Crime, Financing of Terrorist Activities and Financing the Proliferation of Weapons of Mass Destruction" dated June 30, 2014 (as amended): This is the overarching national AML/CFT law that applies to all financial institutions and designated non-financial businesses and professions (DNFBPs) in Belarus, including those operating under Decree No. 8 when conducting financial operations involving virtual assets. It outlines the general principles and specific obligations for AML/CFT compliance. Regulations and Rules issued by the Hi-Tech Park Administration: The HTP Administration, as the direct regulator of crypto activities, issues specific rules and instructions that elaborate on the AML/CFT requirements for its residents, ensuring compliance with both Decree No. 8 and the general AML law. These typically align with FATF recommendations. For Individuals: Obtaining and verifying name, date of birth, place of residence, citizenship, passport details (series, number, date of issue, issuing authority), and sometimes tax ID number. Verification must be based on reliable, independent source documents or data. For Legal Entities: Obtaining and verifying legal name, registration number, legal form, address of incorporation, proof of existence, details of directors/managers, and beneficial ownership information. Identification of Beneficial Owners: VASP must identify and verify the identity of the beneficial owner(s) of the customer, regardless of the ownership structure. For legal entities, this means identifying individuals who ultimately own or control more than a certain percentage (e.g., 25%) of the entity, or who otherwise exercise control. Purpose and Intended Nature of Business Relationship: Understanding the customer's business activities, the purpose of their transactions, and the intended nature of the ongoing relationship. Ongoing Monitoring: Continuously monitoring the business relationship and transactions to ensure they are consistent with the VASP's knowledge of the customer, their business, and risk profile. This includes scrutinizing transactions for unusual patterns.
enforcement Entity Targeted: WhiteBird LLC (the Belarusian legal entity associated with the WhiteBIT crypto exchange). Violation Type: Failure to comply with the requirements for Hi-Tech Park residency and the norms of Decree No. 8. While specific details are often not fully disclosed by HTP, such exclusions typically stem from operational deficiencies, non-compliance with AML/CFT standards, or failure to meet the requirements of the special legal regime. Penalty Amount: Loss of HTP residency (effectively, revocation of its operating license in Belarus). No specific monetary fine for the exclusion itself is usually reported. Outcome: WhiteBird LLC was excluded from the HTP. This led to WhiteBIT announcing the cessation of services for residents of Belarus as of March 2024. Entity Targeted: Individuals and organized criminal groups operating unregistered crypto exchanges, engaging in investment fraud schemes involving crypto, or using crypto for money laundering. Violation Type: Illegal entrepreneurial activity (operating a crypto exchange without HTP registration), fraud, money laundering, theft of crypto assets. Penalty Amount: Varies greatly. These are criminal cases, leading to arrests, investigations, and potential imprisonment, confiscation of assets, and restitution orders. The "penalty amount" is not a fixed fine but relates to the scale of the illicit activity (e.g., millions of dollars laundered or stolen) and subsequent asset seizures. Outcome: Arrests, initiation of criminal proceedings, asset seizures (including crypto and traditional assets), and potential convictions with prison sentences. Outcome: Arrests, initiation of criminal proceedings, asset seizures (including crypto and traditional assets), and potential convictions with prison sentences.
licensing Presidential Decree No. 8 (2017) initially legalized cryptocurrencies and set a framework for activities like mining, exchange, and token creation in Belarus, but subsequent regulatory actions by Belarusian authorities have narrowed its scope by preapproving only 26 specific cryptocurrencies for processing by cryptobanks, imposing restrictions not present in the original decree. Reference (English summary/analysis - finding direct official English text can be challenging): Many legal firms have published summaries. For example, Sorainen provides a good overview: https://www.sorainen.com/publications/belarus-decree-no-8-on-the-development-of-the-digital-economy/ The Belarusian Agriculture and Food Ministry has opened a public consultation on a new draft law on farms, indicating that the previously referenced regulation (Pd1700008) is likely being updated or replaced. No standalone "custodial license": Belarus does not issue a specific "digital asset custodial license" in the traditional sense, separate from a broader digital asset service provider license. HTP residency is no longer the primary requirement to operate as a digital asset custodian in Belarus; new legislation for 'cryptobanks' has introduced alternative licensing and operational frameworks for digital asset services, including custody. HTP residency grants the right to engage in activities related to digital tokens, including their storage and transfer. Applicants for HTP residency must submit a business plan, demonstrate a suitable business model, and comply with HTP's internal rules and oversight, including AML/CFT requirements. Relevant Provisions in Decree No. 8: Article 4.2 of Decree No. 8 defines "cryptocurrency exchange operator" and "other operator" as entities engaging in activities like storage, transfer, and exchange of digital signs (tokens). It explicitly states that "storage of tokens on their own accounts for their clients" is an activity permitted for HTP residents.
sanctions Executive Order (E.O.) 14038 "Blocking Property of Certain Persons Contributing to the Situation in Belarus" (August 9, 2021): Expands the scope of the national emergency declared in E.O. 13405, authorizing blocking of property and interests in property of individuals and entities involved in undermining democratic processes, human rights abuses, and corruption in Belarus. E.O. 14065 "Blocking Property of Certain Persons Contributing to the Situation in Ukraine" (February 24, 2022) and subsequent actions: While primarily aimed at Russia, Belarus's involvement in facilitating the invasion has led to parallel designations and prohibitions, particularly concerning its financial sector and state enterprises. Specially Designated Nationals and Blocked Persons (SDN) List: OFAC designates numerous Belarusian individuals (including President Lukashenka, his family members, and high-ranking officials) and entities (state-owned enterprises, banks, defense companies) to the SDN List. U.S. persons are generally prohibited from transacting with SDNs, and their property and interests in property subject to U.S. jurisdiction are blocked. The U.S. has rescinded Belarus Directive 1, which previously imposed sectoral debt/equity restrictions on certain Belarusian entities, and issued General License 14 authorizing certain transactions, indicating a shift away from the SSI-type framework for Belarus. EU sanctions have been expanded but are separate from U.S. SSI designations. OFAC compliance requirements for VASPs in Belarus have been modified by recent general licenses (GL 13, GL 14) and the rescission of Directive 1, which VASPs must incorporate into their risk-based compliance programs. Management Commitment: Clear support for compliance. Risk Assessment: Identifying inherent and residual sanctions risks. Internal Controls: Policies and procedures to mitigate identified risks (e.g., KYC/CDD, transaction screening, geographic restrictions).
securities The Republic of Belarus has established a framework for regulating cryptocurrencies and digital asset securities, aiming to balance innovation with financial stability and anti-money laundering (AML) compliance. The Law of the Republic of Belarus "About the security market" outlines the legal basis for securities, including digital assets, and mandates oversight by the Financial Market Regulatory Body (FMRB). Entities issuing or dealing in digital asset securities must obtain a license from the FMRB, demonstrating compliance with AML/KYC standards and financial stability criteria. The Financial Action Task Force (FATF) recommendations are incorporated into Belarusian regulations, requiring robust customer due diligence and ongoing monitoring for all digital asset transactions. Regulatory bodies have the authority to impose fines, suspend licenses, or initiate legal proceedings against entities violating digital asset securities regulations. Digital asset transactions are subject to taxation under Belarusian tax law, with specific rates applicable to income from cryptocurrency exchanges and capital gains. Despite regulatory advancements, gaps remain in the clarity of licensing procedures and enforcement consistency, posing risks for market participants and potential vulnerabilities to illicit financial flows. Law of the Republic of Belarus "About the security market"
status National Bank of the Republic of Belarus (NBRB): Regulates monetary policy and oversees banking activities. Website: https://www.bank.by Ministry of Finance: Manages fiscal policies, including indirect oversight of financial transactions. Belarusian Chamber of Commerce and Industry (BCCI): Promotes business interests but does not specifically regulate cryptocurrencies. Law of the Republic of Belarus No. 2‑ФК "On Counteracting the Financing of Terrorism" (2017): Similar to AML laws but again lacks specific crypto references. Entities Requiring License: No specific license is mandated for operating cryptocurrency exchanges or providing digital asset services in Belarus. Activities Requiring Licensing: Traditional financial activities (e.g., banking, payment processing) may require licensing through the NBRB, but these do not directly cover cryptocurrencies unless classified under broader financial instruments. Capital Requirements: Not applicable to crypto-specific operations due to lack of regulatory framework. Application Process & Timeline: No formal application process exists for crypto-related businesses. Existing business registration procedures (through the State Registration Commission) are required but offer no specific scrutiny for digital assets.
tax This means that individuals making profits from trading, selling, exchanging, or even inheriting crypto do not pay capital gains tax or personal income tax on these gains in Belarus until the specified date. Legal entities that are residents of the Hi-Tech Park (HTP) benefit from significant tax incentives related to crypto activities. Profits from activities related to the creation, acquisition, and alienation of tokens (including mining, exchange operations, and other crypto-related services) are exempt from corporate income tax until January 1, 2028. HTP residents also enjoy other benefits, such as reduced social security contributions for employees and certain VAT exemptions on services rendered to foreign customers. Businesses in Belarus that are not HTP residents and engage in crypto-related activities would generally be subject to standard corporate income tax rates on their profits from such activities. The standard corporate income tax rate in Belarus is generally 18%. Exemption until January 1, 2028: Operations involving the alienation (transfer) of tokens are exempt from Value Added Tax (VAT) until January 1, 2028. This applies to both individuals and HTP resident legal entities engaging in such operations. This means that the sale or exchange of cryptocurrencies is not subject to VAT in Belarus for the specified period.
travel rule The lack of explicit licensing and AML/KYC requirements for cryptocurrency activities in Belarus presents significant regulatory gaps. The absence of detailed enforcement actions or tax treatments for digital assets heightens compliance risks for businesses operating in the sector. What Is the Travel Rule? Definition, Thresholds & ... Border crossing rules for foreign citizens THE AMOUNT OF DAILY ALLOWANCE FOR BUSINESS ... What goods can be imported to Belarus free of charge

Sources

This report is AI-generated from publicly available regulatory sources. Last updated: 2026-09-22. View full profile