Bitcoin is seeing increased demand as prices fall but Belarus is already looking much further into the future as it announced changes to current regulation allowing bitcoin start ups to run tax free in most cases. In a bold move, President Alexander Lukashenko signed the decree on the 22nd of December effectively pulling the trigger for crypto development throughout the nation.
The decree has been implemented with the intention of allowing the Hi-Tech park to develop. The Hi-Tech park remains the countries premier base for technology and digital startups
“As for cryptocurrencies, the Digital Economy Development Ordinance allows resident companies of the Hi-Tech Park to use cryptocurrencies for international deals. We are okay with that,” Pavel Kallaur to the BelTA.
Currently the decree amended current law to include the following tax incentive :
“Turnovers, profits (income, proceeds) from various operations with tokens are not recognized as taxable items until January 2023.”
Applying to activities such as mining, trading, even operations such as launching ICO’s will all legally be allowed to run free of tax implications, considerably simplifying the legalities which many startups see as endless and costly loops to jump through.
To conclude, Belarus is set to become a cryptocurrency hotspot considering all startups will be afforded the same privileges not exclusive to bitcoin tech companies. The digital economy development decree will also provide some legal protection as many larger business will be able to base operations in the area. The news also comes as a consolation of previous regulation set out by the central bank of Belarus which promoted and have planned to expand the use of blockchain technology as a platform for debt guarantees to domestic banks in the near future.