officially on the 28. March, in white Russia. The document signals a new departure for the country, and facilitates any type of activities related with crypto-currencies. According to the leader of Belarus should be „a technical country.“
Cointelegraph the post-Soviet country visited, to initiate their own Investigation and find out whether everything at first glance looks as if it is the real benefits of „free crypto economy“.
white Russian Version of „Silicon Valley“
grows While the global competition for skilled IT professionals is always fierce, offers Belarus a number of advantages to attract people from all over the world, in particular, is an important incentive of the tax credit of up to 1. January 2023. This contributes to the flow of capital from abroad, to ensure better relations with the West.
in order To innovative Start-ups in the country and support the government has established the High-Tech Park (HTP), which is the Mecca of the first national crypto-currency operator.
In the global community, the new economic zone, travelled to the white Russian Version of Silicon Valley. The thing is, that its inhabitants, registered IT companies, unique opportunities and privileges for the business development in an early stage.
image source: HTP Press-Center
According to the concept-author of the innovative infrastructure, Vsevolod Yanchevsky, the technology Park, „one of the most comfortable places in the world for IT companies“:
„The decree that in the order of the President of the country was developed, makes Belarus one of the most comfortable places in the world for IT shops. In addition, the strong positive effect of the decree is not only in the IT will be noticeable, but to the entire economy of the country.“ „
According to a statistics of Belarus feed increased the number of residents of HTP according to the signing of the decree of 25 percent in only a few months were 88 companies, the Status of the inhabitant.
image source: Hi-Tech Park
block chain, invest.io reported that 90 percent of the population of Offshore companies that have decided, for various reasons, for operation in the Russian economic zone. Free taxes, governmental support, low cost for a full-time IT professionals, free recruitment of foreign professionals and a simplified registration procedure.
The terms and conditions offered to the residents of the Park, have a positive effect on the development of the IT industry and the economy of the country as a whole. From 2013 to 2016, Belarus was the leader of the Google Code Jam, for the World variables such as World of Tanks, MSQRD, Viber, Maps.me, Prism, Apalon Apps have sprung from the project of the HTP.
, The President gives the green light to crypto-currencies
After the administration had supported the development of the IT sector, she decided, with the countries more to keep in step and began the digitization of the economy. Known for his strict policy, the President into the picture, to ensure the recording of progress in the country, which in the past was never „advanced“. The strength and priority of the decree outweighs the existing laws and can operate under all conditions.
What’s allowed?
The decree legalized companies, based on the Blockchain technology, as well as all activities in connection with crypto currencies and digital Token. Unlike in other countries such as the USA, China, Vietnam and Australia, the restrictions are not Mining and stock exchange transactions in Belarus is treated as a „business activity“ and are also subject to any taxation. In accordance with paragraph 2.2 of the decree of the President, 21. December 2017, no. 8:
„people have the right to possess the Token, and taking into account in this decree set features the following activities: to leave the Mining, the storage of tokens in virtual Wallets, exchange of tokens for other tokens, the acquisition, sale of Belarusian rubles, foreign currency, electronic money, and also to donate and Token.“
In addition, the Declaration of income from crypto-currency operations, up to 1. January 2013 optional. This is a great gift for the crypto-Community.
image source: ey.com
Individual permissions to be granted to organisations, which are part of the HTP. They are of the value-added tax, income tax and other types of tax exempt. Only one percent of the turnover is liable to tax.
additional benefits include a simplified procedure for the Population register with only two for the accession to the HTP necessary documents (business plan and Foundation of the contract), visa-free access for foreign IT workers for up to 180 days per year, permission for the execution of transactions and the possibility of international agreements to sign.
ICO-Changer: The first country, the Smart Contracts legalized
white Russia is one of the first countries that provides a detailed regulation of the digital Token, crypto-currencies, ICOs, activities of the crypto exchanges ready for use, and what is unprecedented – „a Smart Contract is declared to be an official document,“ explains Ilya Orlov, CEO of the travel chain. „A lot of ICO-related projects are attracted by new prospects, but in no hurry to make any progress.
The privileges that have been opened by the decree, could be attractive to those people who have completed their ICO already, or only in your introduction think. A full-fledged Token sale, you must have registered the company, either in the territory of the white Russian Republic and, accordingly, an account at a Belarusian Bank or HTP-operator, the so-called official crypto-currency platforms. For example, the crypto stock exchange exrate.by is announced to be one of these first „national“ platforms.
handled All of the operations relating to crypto-currencies, including the absorption and distribution of investments are also special exchange programs with Bank accounts. In the event that aforeign company a ICO via a HTP-residents can transfer through so-called „Royalties“ capital to the customer.
Traps and mismatches
The main problem consists in the question of how the world banks laundering the international requirements for combating money and the financing that would meet terrorist activities. In spite of the fact that the on 15. February, adopted Resolution no 62 of the Belarusian national Bank stipulates the criteria for finding a suspect transaction, from these corrections, and the regulation is waiting for your Change.
The document according to suspicious financial can be checked transactions in an amount of 1,000 units (approximately US $ 13,000) or more, connected with the acquisition or disposal of Token Fiat money, if there is no source of money, or money from non-resident, without the participation of the HTP are:
The identification of such transactions, carried out under use of Bank cards by means of remote banking systems or the global computer network of the Internet and of mobile communication, should be checked in a next step.
The state of things between Crypto and legal persons remains extremely complicated. Despite the welcomed decree is not the current reality is that Russian banks have the infrastructure to crypto-currencies. This is problematic, as organisations are forced to find banks in the area of responsibility of other countries that already accept crypto-currencies.
Ilya Salei, attorney at Borovtsov & Salei, a member of it Advisory Board of the Association of Belarus, the helps in accession to HTP, told Cointelegraph:
„There is no practice to apply these Standards, since practically no one currencies in Belarus, with the trade of Crypto, or the behavior of the so-called ICOs busy.“
It is still unclear how the fulfillment of the obligations to investors is regulated. The same can be said about the proceedings of ICO-authorization and the Checking of crypto-currency curves.
another dispute that is brought forth by laws, are crypto-payments. Despite the fact that the decree allows the use of crypto-currencies and Token completely, can this be „no means of payment“, This means that individuals will be able to swap with each other. For organizations, the state of things will not change – the supply of services and the sale of Goods in the territory of Belarus can be only in Belarusian roubles.
However, many entrepreneurs may receive only 1 percent of the funds are in Fiat money, accept that while you get the remaining 99 percent in the Form of crypto-currencies.
According to the interactive map of Coinmap, there are about 20 merchants who accept Bitcoin in Belarus. Basically, the cafes and small shops.
image source: coinmap.org
in Spite of the primary legalization of the crypto industry in white Russia, the free movement of crypto currencies can only in the framework of the HTP. According to the authorities, the full payments will be only after a successful Experiment under limited conditions.
the opinions and forecasts
The governmental and financial structures of Belarus are placing great hopes in the decree that the country can make a Paradise for foreign Blockchain Start-ups. This capital would be included and the exit of IT professionals are reduced.
expect The Start-ups of the HTP, you will increase their ranks by 2020, 25 to 50 percent, while the Profit of the accelerator itself will rise to 1.4 billion dollars.
image source: ey.com
conclusion
Despite the fact that international experts, Belarus ‚ tax-free privileges to be a positive development , many projects on the way to the Tokenization or ICO only about HTP compete. In addition, the national Bank can develop within three months after the entry into force of the decree, a legal framework for additional regulation of the industry, which may contain significant Changes.
Maxim Galinovsky, Blockchain expert and COO at SociumTrade, told Cointelegraph:
„In General, it is too early of a Revolution. The term „Revolution“ implies the Sontaneität of what is happening. In connection with the decree of the digital economy, we speak of Evolution. All of the participants in the crypto-Community need to be patient and strive to develop this market.“
The Hi-Tech Park, and the government are trying their Best to create all of the parties to the crypto market-friendly conditions. It is no secret that the opinion leaders and the authors of the decree are under a lot of pressure, the eyes of the whole world are focused on you. The execution of experiments across the country is a big responsibility.
the question of The regulation of crypto-currencies on the inter-state level are solved on uniform state Standards of support. should The international legal norms have the Chance to be a basis for the Integration of the crypto-currency in the existing banking system.
Previously, the Organisation for economic co-operation and development, has prompted the Central banks of the G-20 States to the Constitution of joint regulation of crypto-currencies. Until then, documents such as the above-mentioned decree are effective political PR campaign on the international stage.