In unprecedented move, Belarus – turns out as the first nation to legalize cryptocurrency, If you did think this could happen as a small country in the Eastern Europe would lead in the history of digital currency as the first to comprehensively legalize the coins – you had us!
The measure, entitled “On the Development of Digital Economy,” offers a number of domestic guarantees:
- cryptocurrency use is legal; income and gains tax-free for five years
- crypto mining is legal; tax-free for five years
- smart contracts and Initial Coin Offerings (ICOs) permitted
Not having to declare crypto-based income until 2023 will be enough to win many firms over to Belarus. And that’s the idea, per Belarussian President Alexander Lukashenko:
“The main goal of the document is to create such conditions that global IT companies would come to Belarus, open their representative offices, development centers, and create popular products in the world.”
It’s a bold move at a pivotal time, as other nations across the world are moving toward more onerous regulations that legally restrict cryptocurrency use.
Even that it might first seem as it is not the most exciting settling-place for fintech companies hitherto, the development as engraved a very important hook for companies that are looking out which nation is delivering the most supportive regulation.
Following the same mood, other nations could join the new regulatory system that Belarus has just introduced which would lead to a wave of leniency toward crypto use might be closer than we think.
What will the United States, or China, or Russia do next? No one knows. But Belarus isn’t waiting around for the top dogs to make up their minds: it’s going all-in on crypto now.
The Highest functioning body of country executive authority and official – The Cabinet of Ministers of Ukraine on the Financial Stability Board on Aug 2017 held a meeting towards the Legalization or Status decision for Digital currencies like Bitcoin in the State. Upon the particular meeting, the authorities and ministers arranged a decision making date – In Three Weeks.
The Cabinet is under the direct control of the so called Verkhovna Rada – the Ukrainian parliament. Based on the statement of Olexander Danchenko – the parliament’s People’s Deputy, the Ministry of Finance, the National Bank of Ukraine, the Parliament – Verkhovna Rada and the Blockchain/cryptocurrency community will be cooperating with the ministers to say the final word.
What is the Authorities take on the Situation
Tymofiy Mylovanov – the National Bank deputy chariman said that:
“Participants in the meeting understand the importance of Blockchain and the digital currencies as disruptive technologies, as well as the need to develop the industry, provide reasonable regulatory support and protect it against unlawful actions by different bodies.”
On the other side, the NSSMC – National Securities and Stock Market Commission chairperson Timur Khromaev, stated that Bitcoin, other blockchain tokens and different platforms are part of the countries financial market status already that can not be missed. For the same reason legalization of the right instruments is their duty.
But the Nation Bank of Ukraine leading figure in taking action Yakiv Smoliy said that:
“The central bank neither recognizes Bitcoin nor bans Bitcoin mining activities. Bitcoin does not fall into any definition that the bank uses for currencies, money surrogate and electronic money, and has not decided yet on how it will consider the virtual currency.”
Everything will be drafted out and decision-taken based on the framework of the Financial Stability Board in near terms – Y. Smoliy
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