The President of Belarus, Aleksandr Lukashenko, has urged his government to introduce stricter regulations for the crypto industry, as reported by local media on September 5. This move is aimed at protecting investors and the country’s economic interests. According to Lukashenko, lax supervision would undermine the security of investors and the state’s economic interests, highlighting the need for a more robust regulatory framework.
The President’s warning came during a high-ranking government conference, following a state audit that revealed concerning findings. The audit discovered that approximately half of all citizen investments sent to foreign crypto platforms did not return, raising concerns about the potential risks associated with unregulated crypto transactions. Furthermore, the state control committee’s inspection uncovered violations of financial transaction registration on domestic platforms, emphasizing the need for more stringent oversight.
Regulatory Overhaul on the Horizon
Lukashenko has already ordered a comprehensive framework for digital tokens and crypto in 2023, but so far, no binding legislation has been presented to him. The country has also initiated plans to create a digital central bank currency connected to the Russian ruble, demonstrating its commitment to embracing digital innovation while ensuring financial stability. The President criticized the government for allowing the “digital life” to exceed the law, emphasizing the need for regulations that guarantee financial stability while protecting investors.
Balancing Security and Investment
The digital asset activity in Belarus is currently governed by the Hi-Tech Park, a special economic zone regulated by framework No. 8. While this framework promotes the country’s IT sector and lays the legal basis for creating and trading tokens, Lukashenko recognizes its inadequacy. He signaled that traditional state agencies would soon play a greater role in observing the sector, striking a balance between security and investment. The measures outlined by Lukashenko aim to create transparent rules for market participants, including protective measures that ensure funds remain within the country.
Implications for the Crypto Industry
The government has not yet published a schedule for the implementation of new regulations, but Lukashenko’s ultimatum suggests that the crypto industry in Belarus will likely face increased state control in the coming months. This development may have significant implications for local companies and foreign investors operating in the country’s “Digital Haven.” As the regulatory landscape evolves, it is essential for market participants to stay informed and adapt to the changing environment.
For more information on this development, please refer to the original article at https://cryptoslate.com/belarus-president-calls-for-tightened-crypto-regulation-to-protect-investors-and-economy/
