Belarus Moves Forward: The Establishment of Regulatory Framework for Cryptocurrency Banks

On January 16, 2025, a significant regulatory milestone was achieved when Belarusian President Alexander Lukashenko approved an executive order designed to facilitate the establishment of the country’s cryptocurrency banking sector. This action represents a strategic commitment to positioning Belarus as a global leader in financial technology innovation and creating a structured environment where digital asset-based financial institutions can operate legally and securely.

Legal Definition and Market Entry Requirements

Decree No. 19, formally titled “Several Issues Concerning the Regulation of Cryptocurrency Banks and Digital Tokens,” introduces a comprehensive framework that delineates what constitutes a crypto bank within the Belarusian jurisdiction. Under this regulatory structure, a cryptocurrency bank is formally recognized as a joint-stock company with explicit authorization to conduct transactions using digital tokens, while simultaneously maintaining the capacity to deliver traditional banking services, payment processing, and related financial activities. This hybrid operational model reflects a pragmatic approach to integrating digital assets with conventional financial services.

To participate in this newly established market, prospective crypto banks must satisfy specific preconditions. First, they must maintain resident enterprise status within one of Belarus’s designated high-tech industrial parks, which serve as innovation hubs for technology-driven enterprises. Second, entities seeking to operate in this space must secure registration on the National Bank’s official cryptocurrency bank registry, a requirement that ensures only vetted and approved institutions can legally conduct such operations.

Operational Compliance and Supervisory Oversight

Beyond the establishment of basic entry requirements, the decree mandates strict adherence to regulatory standards. Operating cryptocurrency banks must comply with all requirements applicable to non-bank credit financial institutions, ensuring consumer protection and systemic financial stability. Additionally, these entities remain subject to oversight from their respective high-tech industrial park supervisory boards, creating a multi-layered governance structure that balances innovation with prudent risk management.

This regulatory approach reflects Belarus’s nuanced understanding that the establishment of a robust cryptocurrency banking framework requires clear rules, transparent operational standards, and strong supervisory mechanisms to protect stakeholders while fostering technological advancement.