JUST IN: Belarus Approves First Crypto Banks as New Digital Asset Rules Take Effect

Belarus has registered its first crypto banks under a new digital asset framework. The move brings the country closer to launching regulated institutions that combine crypto and banking services.

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Belarus Registers First Crypto Banks

The High-Tech Park added the country’s first two crypto banks as residents. However, both institutions will have to get accreditation from the National Bank before they can start functioning.

The registrations were announced at a meeting of the supervisory board chaired by Prime Minister Alexander Turchin. The decision moves Belarus’ crypto banking rules into the next stage.

The two institutions have not been identified. However, Dmitry Kalechits, a senior High-Tech Park official, said both already operate in the crypto market.

The applicants established expert teams and readiness of their technological systems, he said. They also did technical and legal checks prior to the registration.

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National Bank Approval Still Required

The framework requires every crypto bank to hold High-Tech Park resident status. Additionally, every institution will have to register under the official crypto bank registry of the National Bank.

According to the rules, a crypto bank is required to be a joint-stock company. The framework enables companies to provide digital token services in addition to banking and payment services.

The crypto banking decree was signed in January by Belarusian President Alexander Lukashenko. The rules went into effect in July and provided a formal category for these institutions.

Earlier, the Chairman of the National Bank Roman Golovchenko stated that a number of foreign financial companies had expressed interest in the sector.

Belarus Uses Dual Crypto Bank Regulation

Belarus plans to regulate crypto banks through both the High-Tech Park and the National Bank. The High-Tech Park is already a legal area for approved digital asset activity.

Kalechits stated that the dual model would help firm up supervision and encourage regulated crypto financial services. He further pointed out that the structure could help build confidence in the financial sector.

However, Belarus is not walking the same route as nations that rely on current banking legislation to regulate crypto firms. Switzerland, for instance, has enabled crypto banks to be licensed under its existing banking regime.

Belarus has established a special crypto bank category, thereby establishing a special regulatory path. The first registrations are now stepping the framework closer towards full licensing and market entry.