Belarus Plans Partial Ban on Crypto Transactions Curbing Illegal Transfers

• The government plans to restrict P2P cryptocurrency services.
• P2P interaction between users eliminates the need for exchanges.

Belarus is getting ready to impose a partial ban on cryptocurrencies. Sunday’s announcement from the Ministry of Internal Affairs said that criminals were using P2P crypto services as a means of money laundering. In addition, the group said in the statement that it was working on legislation to prohibit the “exchange of cryptocurrency between individuals.”

Since the start of this year, “the activities of 27 citizens who provide illegal cryptocurrency exchange services” have been curbed by cybercrime counteraction teams, according to the statement.  They made close to $8.7 million in total unlawful profits.

Curbing Money Laundering

The government plans to restrict P2P cryptocurrency services so that crypto transactions can only take place thru authorized exchanges. Direct, one-on-one interaction between users of a P2P service eliminates the need for exchanges.

The regulatory body also mentioned its intention to institute a method similar to the one used when exchanging foreign currency. Thus, making it difficult and nearly impossible for wrongdoers to withdraw funds.

The authorities mentioned:

“The MFA is working on legislative innovations that prohibit crypto exchange transactions between individuals. For transparency and control, citizens will be allowed to conduct such financial transactions only through the HTP exchanges.”

As a whole, crypto has been met with a positive reception in Belarus. The government just recently legalized digital asset transactions, yet it was already one of the top 10 crypto tax-friendly countries in January, according to blockchain analytics firm Glassnode.

The new regulation exempts from taxation both individuals and businesses engaged in crypto transactions. Supporting the IT industry and fostering the development of the digital economy were primary objectives.

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