Belarus

#57

Crypto Exchanges & Regulation – Top exchanges in Belarus by Coincub criteria

Country facts

Belarus crypto score

Trade and store crypto

How to securely store your Bitcoins in Belarus?

In Belarus, you can securely store your Bitcoins by using a hardware wallet, a paper wallet, or a software wallet with strong security features. It’s important to keep the device or paper containing the wallet in a safe and secure location and to regularly back up the wallet to avoid loss due to device failure or damage. It’s also advisable to follow best practices for protecting your digital assets, such as keeping your software up-to-date, using strong and unique passwords, and avoiding sharing personal and financial information online. If you don’t know what any of that means, we recommend reading more about wallets here.

What are the risks of buying bitcoin in Belarus?

Crypto regulation in Belarus

Belarus loves bitcoin – but they’re not afraid to play hardball!

Belarus is all about that crypto life! They adopted the world’s first formal law on cryptocurrency and blockchain, Decree No. 8, in 2017 and it went into effect on March 28, 2018. It even permits the selling, exchanging, and mining of cryptocurrencies!

But don’t get too excited – operating a crypto exchange is considered high risk, much like running a casino or lottery. And if you want to run an ICO in the High Technologies Park, you better be ready to jump through some hoops and get authorization.

But hey, at least the businesses in the High Technologies Park get a sweet tax break – they only pay 1% of their turnover, and these terms are guaranteed through 2049.

While most countries are still figuring out what to do with crypto, Belarus is ahead of the game. And who knows, maybe one day they’ll be the crypto capital of the world!

Just remember, if you’re a crypto miner, you may be considered a money transmitter under the Financial Crimes Enforcement Network (FinCEN). But, hey, as long as you’re not mining in a country that’s banned crypto-related activities, you should be good to go!

Taxes in Belarus

Belarus is a global leader in Coincub’s crypto tax ranking as it surged ahead with crypto adoption following its decision some years back to exempt individuals and businesses dealing in cryptocurrency from taxes right up to 2023. This year the company might take a turn on this decision, but President Alexander Lukashenko of Belarus aims to have more control over the digital economy by changing current regulations of the cryptocurrency industry. Lukashenko wants the government, National Control Committee and central bank to clarify regulatory norms and establish control over crypto usage. He wants to create a special governmental body for digital economy control, using China’s regulatory practices as an example. The recent use of bitcoin by dissidents in Belarus has prompted the government’s discussion on crypto regulation. A government-backed IT incubator, the Belarus Hi-Tech Park, may be tasked with supervising cryptocurrency services. Some crypto experts believe Lukashenko’s new regulations would ease rules for regime supporters while clamping down on others. Lukashenko is seen as trying to tighten his grip on IT to stop it from evading his control and finding funds for Belarus’ economy.

Is it legal to mine bitcoin in Belarus?

Mining and investing in cryptocurrencies are declared as personal investments, and exempt from income tax and capital gains in an effort to boost the digital economy. As the 2023 deadline approaches, it’s hard to see things staying the same but for the next three or four months at least, your crypto gains will be untaxed.

What are the upcoming guidelines for Belarus taxes in 2023?

The government of Belarus has produced a series of guidelines for the upcoming changes in 2023 on corporate and individual income tax:

1. Corporate income tax rate increased from 18% to 20% with repeal of 2% local tax.
2. 30% corporate tax rate for telecom and microfinance organizations from 2023-2025.
3. Foreign dividend tax rate increased to 15%.
4. Foreign organization income tax exemption for funds from government.
5. 3-year tax exemption for car/auto component sales repealed.
6. Advertising expenses deductible from 2023.
7. Limitation on deductibility of foreign currency exchange differences abolished.
8. Loss carry-forward period reduced to 5 years, retroactive to 2022.
9. VAT reverse charge extended to purchases from foreign individuals.
10. Transfer pricing controls expanded to include loans to rehab/insolvent organizations.
11. Accounting/financial data of Belarusian organizations used for transfer pricing.
12. Transfer pricing documentation deadline extended to 1 Aug.
13. Penalty exemption for income tax adjustment extended to 2023 and 2024.
14. 26% individual tax rate for illegal income.
15. 13% individual tax rate for high-tech park employees extended to 2025.

The extent to which these guidelines will impact precisely your crypto tax bill is tbd, most like everywhere else in the world though.