Lede
Belarusian President Alexander Lukashenko has officially established a comprehensive legal framework for the operation of what are termed “cryptobanks” within the country. By signing Decree No. 19, the government has defined the specific operational standards and legal conditions these new financial entities must meet to enter the domestic market, effectively granting them a recognized legal status. This move is designed to integrate digital asset activities into the nation’s broader regulated banking infrastructure under direct state oversight. According to the newly signed decree, these institutions are specifically positioned as joint-stock companies. These companies are authorized to combine token-based operations with traditional banking services, including payments and other related financial offerings, rather than operating in a parallel or unregulated sector.
The decree mandates that any entity seeking to operate as a cryptobank must adhere to strict administrative requirements. Specifically, they are required to obtain resident status in the country’s Hi-Tech Park, which serves as a state-backed technology zone for innovation. Furthermore, these organizations must be entered into a dedicated register that is maintained and overseen by the central bank of Belarus. By linking digital asset activity to existing financial oversight mechanisms and state-managed infrastructure, the government aims to ensure that the development of the crypto sector occurs within a clearly defined and controlled environment. This approach effectively transitions crypto-related banking from an experimental phase into a formalized, structural component of the Belarusian financial system, ensuring all participants operate within the state’s parameters.
Context
The introduction of the cryptobank framework follows a series of deliberate policy directions established by the Belarusian leadership throughout the latter half of 2025. On September 5, 2025, President Lukashenko publicly instructed the country’s lawmakers to create clear and transparent rules for the cryptocurrency market, emphasizing the critical need for robust state control mechanisms to accompany technological innovation. This instruction set the stage for the formalization of digital asset laws. Shortly thereafter, on September 10, the President further elaborated on this necessity, citing the growing importance of digital tokens in modern finance. He specifically pointed toward the economic pressure resulting from international sanctions as a primary reason why there was an urgent need for domestic banks to engage with the crypto sector.
Furthermore, the President highlighted the increasing use of digital tokens in cross-border transactions as a factor necessitating a regulated banking response. In addition to promoting this state-sanctioned growth, the Belarusian government has simultaneously moved to restrict unregulated activities that fall outside of its new framework. On December 12, authorities took the significant step of blocking access to several major offshore cryptocurrency exchanges. The government cited advertising violations as the reason for these blocks, signaling a much broader crackdown on what it identifies as the digital asset “gray market.” By eliminating these unregulated offshore channels, the administration has reinforced its long-running policy of permitting cryptocurrency use only through clearly defined, state-approved channels that are fully integrated into the national regulatory landscape.
Impact
The implementation of Decree No. 19 subjects cryptobanks to a rigorous dual-oversight model that involves both financial and technological regulatory bodies. Under the terms of the decree, these institutions are required to comply with the same rules and standards applied to non-bank credit and financial institutions. Additionally, they must implement and adhere to all decisions issued by the Hi-Tech Park’s supervisory board. This layered approach is intentionally designed to subject crypto-related banking activity to comprehensive monitoring, ensuring that financial stability and technological security are maintained simultaneously. By requiring cryptobanks to be established as joint-stock companies, the state ensures that these entities possess a traditional and transparent corporate structure.
The government intends for this dual regulation to allow cryptobanks to offer innovative products that blend conventional banking services with the specific efficiencies provided by token-based transactions. This allows for the delivery of crypto services through licensed entities that are already deeply embedded in the national financial system. According to the president’s office, the decree is specifically intended to strengthen Belarus’s international image as a prominent financial IT hub. The framework effectively narrows market participation, ensuring that only those firms willing to operate within the country’s strict regulatory parameters are allowed to function. By combining token-based operations with traditional banking and payments, the state aims to leverage digital assets to bolster its financial infrastructure while maintaining absolute oversight via the central bank and the Hi-Tech Park.
Outlook
Looking forward, the signing of Decree No. 19 marks a pivotal transition in the state’s strategy to govern the digital asset landscape. As cryptobanks begin the process of registering with the central bank and establishing residency within the Hi-Tech Park, the primary focus will likely shift to the practical integration of cross-border token transactions. Given the President’s previous emphasis on the role of digital tokens in navigating international economic pressures and sanctions, the use of these assets for cross-border payments is expected to be a cornerstone of the newly legalized institutions. The state’s ongoing goal is to maintain the clear and transparent rules requested by the leadership to facilitate innovation while preserving strict oversight of all financial flows.
The future success of this initiative will depend on the ability of these joint-stock companies to effectively implement the regulatory decisions of the Hi-Tech Park’s supervisory board while meeting the rigorous reporting requirements of the central bank. The recent crackdown on offshore exchanges and the digital asset gray market suggests that the government will continue to prioritize its internal, regulated market over external or decentralized alternatives. As Belarus continues to position itself as a specialized hub for financial technology, the established legal framework for cryptobanks will serve as the primary foundation for all future digital asset developments. This controlled environment is intended to provide a stable platform for banks to expand into crypto, ensuring that all such activity remains tethered to the national interest and existing financial oversight mechanisms.
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