Cryptocurrency

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<p>Belarus, an Eastern European nation, is gearing up to establish a partial prohibition on cryptocurrencies, citing illegal transfers and money laundering as primary concerns. The country’s Ministry of Internal Affairs announced this decision on Sunday, specifying that the restrictions would target <a href="https://en.wikipedia.org/wiki/Peer-to-peer">peer-to-peer</a> (P2P) cryptocurrency services.</p> 
<h2 style="text-align: center;" id="strong-the-menace-of-money-laundering-strong"><strong>The Menace of Money Laundering</strong></h2> 
<p>The government’s focus on P2P platforms is underpinned by the growing incidences of these services being manipulated for money laundering and other illegal financial activities. With the absence of a centralized exchange, P2P transactions facilitate direct interaction between users, thereby removing the layer of regulatory oversight provided by exchanges.</p> 
<p>This year alone, the ministry’s cybercrime counteraction teams have reportedly cracked down on the operations of 27 citizens providing illegal cryptocurrency exchange services, with cumulative unlawful profits nearing $8.7 million.</p> 
<h2 style="text-align: center;" id="strong-transitioning-to-authorized-exchanges-strong"><strong>Transitioning to Authorized Exchanges</strong></h2> 
<p>To effectively rein in illegal transfers, the government is contemplating a legislative framework that would restrict crypto transactions to authorized exchanges. By mirroring the strategy employed for foreign currency exchange, the aim is to erect substantial hurdles for malefactors wishing to illicitly withdraw funds.</p> 
<p>According to an official statement, the Ministry of Internal Affairs is actively “working on legislative innovations that prohibit crypto exchange transactions between individuals.” To foster transparency and enhanced control, financial transactions involving cryptocurrency would only be permissible through exchanges under the High Tech Park (HTP).</p> 
<h2 style="text-align: center;" id="strong-balancing-crypto-regulation-and-fostering-digital-economy-strong"><strong>Balancing Crypto Regulation and Fostering Digital Economy</strong></h2> 
<p>Despite this regulatory clampdown, it is worth noting that Belarus has generally been receptive to the <a href="https://walletinvestor.com/magazinadmin/visas-crypto-product-roadmap-driving-mainstream-adoption-of-blockchain-and-stablecoin-payments/">integration</a> of cryptocurrencies in its economy. The government has not only legalized digital asset transactions but has also been recognized as one of the top 10 crypto tax-friendly nations by blockchain analytics firm Glassnode in January.</p> 
<p>The newly proposed regulation would exempt both individuals and businesses engaged in crypto transactions from taxation. The primary intention behind such policies is to spur the growth of the IT industry and cultivate the development of the digital economy, notwithstanding the country’s increased vigilance against the misuse of P2P cryptocurrency services.</p>

Belarus Targets P2P Cryptocurrency Transactions to Combat Illegal Activities

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