Belarus Bans Citizens from Foreign Crypto Exchanges: Will Russia Follow?

Belarus has tightened its regulations on crypto trading, banning individuals from buying and selling digital assets outside of domestic exchanges and brokers.

The legislation, signed by President Alexander Lukashenko, aims to increase consumer protection and prevent the use of crypto in illegal activities.

With Belarus trying to keep crypto within its borders, will Russia follow suit now that it is thawing toward the industry?

Belarus Ban On Foreign Crypto Exchanges

The new Belarusian rules apply to both individuals and entrepreneurs residing in the High Technology Park (HTP), a special economic zone designed to promote IT development.

HTP participants enjoy several tax benefits and can operate their businesses anywhere in Belarus.

At the time of writing, crypto exchanges and brokers in Belarus are restricted to HTP residents. This ensures that these platforms adhere to local regulations and contribute to developing a controlled market.

The government believes that the ban will help prevent the outflow of stolen funds from the country through cryptocurrency exchanges.

While the decree does not directly prohibit trading on foreign platforms, it effectively bans peer-to-peer transactions within Belarus.

Despite the new restrictions, the ban is unlikely to significantly impact the Belarusian crypto market, as most activities are already concentrated within the HTP. However, the decree clearly demonstrates the government’s intention to crack down on unregulated cryptocurrency trading.

Will Russia Follow?

As Belarus tightens its grip on the cryptocurrency market, all eyes are on Russia, its closest ally, to see if it will follow suit.

The two nations have long shared a special relationship, with Belarus often serving as a testing ground for Russian economic and regulatory policies. It’s possible Moscow could take a page out of Minsk’s playbook.

However, the Kremlin has been gradually embracing the crypto industry , with reports emerging that the country is testing national crypto exchanges and cross-border settlements in crypto .

It’s unlikely that Russia will impose such a ban now.

Experts argue that a ban would be detrimental to Russia’s economy , especially in the current geopolitical climate.

Mikhail Uspensky, a member of the Expert Council for Legislative Regulation, noted that prohibiting the acquisition of foreign digital assets would be a “ suicidal move ” for Russia’s foreign economic activity.

However, Uspensky’s comments stand in stark contrast to a recent warning from Russia’s Central Bank, which recently sounded the alarm on the dangers of crypto.

The Bank argued that a surge in digital currencies could undermine the stability of the already beleaguered Ruble, potentially eroding the use of national currencies.

The warning from the Bank comes despite it overseeing Russia’s crypto trails.