Belarus is making a bold play to position itself as a digital haven for cryptocurrencies. President Aleksandr Lukashenko has urged regulators to expedite the finalization of long-overdue crypto regulations, as reported by state news agency BelTA on September 5. In his remarks, Lukashenko emphasized the need for “transparent rules of the game” to keep pace with global adoption while ensuring investor protection and financial stability.
Regulatory Push Amid Violations
Lukashenko’s call comes after the State Control Committee’s report unveiled troubling discrepancies in transaction records of crypto platforms. The president highlighted that in nearly half of the cases, funds transferred abroad by Belarusian investors did not return, labeling this as unacceptable. Although specifics were scarce, it seems these issues stem from regulatory gaps or possible platform failures, leaving investors in limbo.
Here’s the catch—technology is outpacing legislation. Lukashenko urged the Hi-Tech Park, a special economic zone pivotal to Belarus’ digital economy, to collaborate with regulators to draft rules that instill confidence in both domestic and international businesses. “Work calmly in our digital haven,” he advised, signaling potential perks for those who comply.
Mining and Energy: A Strategic Angle
This isn’t Lukashenko’s first foray into the crypto spotlight. Earlier this year, on March 5, CoinDesk reported his musings on leveraging Belarus’ surplus electricity for crypto mining. “Look at this mining. More and more people are turning to me. If it is profitable for us, let’s do it,” he told his energy minister. This aligns with global trends, as seen in KuCoin’s introduction of KuMining, which emphasizes “Simple Mining, Smart Gains” for effortless crypto accumulation.
The idea dovetails with global trends. Bhutan’s bitcoin mining capacity exceeds 100 megawatts, with plans for 500MW more. El Salvador, another pioneer, relies on geothermal energy for its bitcoin operations. Belarus could follow suit, capitalizing on its power surplus—if regulators give it the nod.
Historical Context: A Digital Economy Pioneer
Belarus was ahead of the curve with its 2017 Decree No. 8 “On the Development of the Digital Economy,” which laid the groundwork for digital assets under the Hi-Tech Park umbrella. This special economic zone offers sweet tax and legal conditions to IT firms, extending these incentives until 2049. It legalized activities like crypto mining and token sales for Hi-Tech Park residents, aiming to attract foreign blockchain startups.
The decree also recognized digital tokens in Belarusian law, creating a framework for their issuance and exchange—a pioneering move at the time. Yet, as Lukashenko’s latest comments suggest, the framework is still incomplete. There’s an apparent impatience to align regulatory ambitions with technological capabilities.
Looking Ahead: Can Belarus Deliver?
As Belarus strives to cement its position as a crypto-friendly nation, questions linger. Can the country deliver on its promise to become a “digital haven,” or will regulatory setbacks hamper progress? The pressure is on for Lukashenko and his administration to bridge the gap between aspiration and reality. Recent trends, such as the decline in Bitcoin mining output in August, highlight the challenges and volatility in the mining sector that Belarus must navigate.
The global crypto landscape is rapidly evolving, with new players and technologies emerging at an unprecedented pace. Belarus stands at a crossroads, with the potential to become a key player—or miss the boat entirely. As the world watches, the next steps will be crucial.
Source
This article is based on: Belarus Seeks to Cement Role as Crypto ‘Digital Haven,’ President Lukashenko Says
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
