Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
The decree signed by Belarusian president Alexander Lukashenko which legalizes cryptocurrencies, initial coin offerings, and smart contracts, will enter into force in March. Cryptocurrency activities are not restricted by the decree and will be tax exempt until 2023.
Also read:Â South Korea Urges 23 Countries, EU, and IMF to Collaborate on Curbing Crypto Trading
Cryptocurrencies Soon To Be Legal
The decree which legalizes cryptocurrencies, initial coin offerings (ICOs) and smart contracts in Belarus will go into effect on March 28. Entitled âOn the development of the digital economy,â it was signed by President Alexander Lukashenko on December 21, as news.Bitcoin.com previously reported.
âThe decree entitles legal entities and individual entrepreneurs who are residents of the High Technology Park (the HTP) to perform operations with tokens (including cryptocurrency),â explained Iryna Chelyshava, an associate attorney at the Belarusian law firm of Vlasova Mikhel & Partners. âOthers can use tokens in the territory of Belarus through residents of the HTP,â she elaborated on Jurist.
The HTPÂ is a special economic zone with a special tax and legal regime in Belarus, analogous to Silicon Valley in the US. According to its website, 192 companies that develop software products and provide IT services to customers from 67 countries worldwide are residents of the park, 35% of which are enterprises with 100% foreign investments.
The park describes itself as âthe main experimental site for the implementation of pilot projects,â including those based on cryptocurrencies. According to its announcement this week:
The HTP Administration draws your attention to the fact that Decree No.8 âOn the development of the digital economyâ comes into force on March 28, 2018.
No Restrictions and No Taxes
âThe new decree legalizes ICOs, cryptocurrencies, and smart contracts,â the HTP explained. It âdoes not imply any restrictions and special requirements for the operations of creation, placement, storage, alienation, exchange of tokens, as well as the activities of crypto exchanges and crypto platforms.â Furthermore, the park clarified:
Activity such as mining, acquisition, alienation of tokens, carried out by individuals, are not entrepreneurial activities, and tokens are not subject to declaration. At the same time, until 2023, activities related to mining, the creation, acquisition and alienation of tokens are not taxed.
Chelyshava explained that the decree provides the definition of tokens, cryptocurrencies, and smart contracts. âThe definition given in the decree for cryptocurrency lists it as a version of the token,â she conveyed, adding that âfor now the decree does not provide the criteria of cryptocurrency that would distinguish it from tokens.â As for smart contracts, the definition âis broad enough to encompass various approaches to the understanding of smart contracts that exist now,â she emphasized. For tokens, she wrote:
The decree does not specify the nature of the certain civil right, and therefore the concept of âtokenâ is provided with a high degree of flexibility.
By making smart contracts legal documents, âBelarus becomes the first country in the world to legalize smart contracts at the country level,â the HTP noted.
Anton Myakishev, the head of Microsoftâs Belarus office, told Reuters that âthe decree is a breakthrough for Belarus,â adding that âit gives the industry the possibility to make a leap forward in its development and allows foreign capital the possibility to come to Belarus and work in comfortable conditions.â
What do you think of Belarus making a tax-free zone for cryptocurrencies? Let us know in the comments section below.
Images courtesy of Shutterstock and HTP.
Need to calculate your bitcoin holdings? Check our tools section.
The post Cryptocurrency Activities Will Be Legal and Tax Free in Belarus Starting in March appeared first on Bitcoin News.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.