In a significant regulatory advancement, Belarusian President Alexander Lukashenko has enacted Decree No. 19, which establishes a legal framework for bitcoin and cryptocurrency banks. This decree positions Belarus as a burgeoning hub for financial technology, facilitating a structured pathway for cryptocurrency-related services.
Under the newly minted law, a crypto bank is defined as a joint-stock company that operates as a resident of Belarus” High-Tech Park (HTP) and is registered with the National Bank of Belarus. These institutions are empowered to provide traditional banking services—such as deposits, loans, and transfers—while simultaneously engaging in activities involving digital tokens, thereby creating a hybrid financial ecosystem that merges fiat operations with cryptocurrency.
Only firms that are registered with the HTP and included in the National Bank”s crypto bank registry will be permitted to conduct operations. Importantly, these crypto banks will not function as full commercial banks; instead, they will operate as non-bank financial entities, subject to dual regulation. This dual oversight mandates compliance with regulations applicable to non-bank credit and financial institutions, encompassing capital adequacy, risk management, anti-money laundering (AML), and counter-financing of terrorism (CFT) obligations, along with consumer protection protocols. They will also adhere to directives issued by the HTP Supervisory Board.
This decree is part of Belarus” broader initiative to integrate digital finance with its traditional banking infrastructure. The presidential website elaborated that “dual regulation will allow a crypto bank to offer clients innovative financial products that combine the advantages of traditional banking operations with the technological efficiency, speed, and convenience of digital token transactions.”
Historically, Belarus has been proactive in adopting cryptocurrency regulations. A decree issued in 2017 provided tax-free conditions for cryptocurrency mining and trading, removing the necessity for individuals to declare crypto income. In recent years, Lukashenko has also advocated for the development of virtual payment systems and bitcoin mining projects, particularly leveraging surplus electricity to power mining operations in the Mogilev region. The nation anticipates launching its digital ruble in full-scale operation by the latter half of 2026.
For local users and businesses, this new framework could significantly enhance access to hybrid financial products that connect fiat and digital currencies. By facilitating smoother and expedited settlement processes, crypto banks may reduce the friction associated with transitions between traditional and cryptocurrency-based transactions. Additionally, the decree delineates clear regulatory boundaries, ensuring that cryptocurrency operations are fully backed by fiat and remain under regulatory supervision.
Globally, Belarus” strategic move resonates with ongoing trends toward on-chain finance and tokenized assets, as banks and financial institutions increasingly explore blockchain technology for various applications, including payments, trading, and asset management. Just recently, Belgium”s KBC Group announced plans to become the first local bank to enable retail clients to trade cryptocurrencies, beginning February 16 through its Bolero platform, in accordance with the EU”s MiCAR regulations.
