Belarus -- Licensing Requirements Regulatory Overview

Presidential Decree No. 8 (2017) initially legalized cryptocurrencies and set a framework for activities like mining, exchange, and token creation in Belarus, but subsequent regulatory actions by Belarusian authorities have narrowed its scope by preapproving only 26 specific cryptocurrencies for processing by cryptobanks, imposing restrictions not present in the original decree.

**Reference (English summary/analysis - finding direct official English text can be challenging):** Many legal firms have published summaries. For example, Sorainen provides a good overview: https://www.sorainen.com/publications/belarus-decree-no-8-on-the-development-of-the-digital-economy/

The Belarusian Agriculture and Food Ministry has opened a public consultation on a new draft law on farms, indicating that the previously referenced regulation (Pd1700008) is likely being updated or replaced.

**No standalone "custodial license"**: Belarus does not issue a specific "digital asset custodial license" in the traditional sense, separate from a broader digital asset service provider license.

**HTP Residency**: The primary requirement to operate as a digital asset custodian (among other services) is to **become a resident of the Hi-Tech Park (HTP)**.

HTP residency grants the right to engage in activities related to digital tokens, including their storage and transfer.

Applicants for HTP residency must submit a business plan, demonstrate a suitable business model, and comply with HTP's internal rules and oversight, including AML/CFT requirements.

**Relevant Provisions in Decree No. 8**: Article 4.2 of Decree No. 8 defines "cryptocurrency exchange operator" and "other operator" as entities engaging in activities like storage, transfer, and exchange of digital signs (tokens). It explicitly states that "storage of tokens on their own accounts for their clients" is an activity permitted for HTP residents.

**Decree No. 8's Stance**: The decree itself **does not explicitly detail strict segregation requirements** in the way traditional financial regulations do (e.g., mandating separate legal entities or specific trust accounts for client funds vs. operational funds).

**Implicit Expectation/Best Practice**: While not explicitly codified in the primary decree, reputable digital asset service providers are expected to employ robust internal controls. Given the HTP's oversight and AML/CFT requirements, ensuring proper accounting and logical segregation of client assets from the firm's own assets would be a strong expectation and potentially an internal HTP guideline or a condition of residency for a particular operator.

**HTP Oversight**: The HTP administration reviews the business operations and internal policies of its residents. It is highly probable that during the application or ongoing supervision, they would require companies to demonstrate adequate risk management and operational controls for safeguarding client assets, which would typically include some form of asset segregation.

**No explicit mandate**: Presidential Decree No. 8 **does not explicitly mandate specific insurance or bonding requirements** for digital asset custodians (HTP residents).

**Industry Practice**: While not legally required, well-established and responsible digital asset custodians often obtain cyber insurance, crime insurance, or other forms of coverage to protect against potential losses due, for example, to hacks, theft, or operational errors. This would be a business decision rather than a regulatory mandate in Belarus.

**No explicit mandate**: Decree No. 8 **does not explicitly mandate the use of cold storage** or any specific technology for safeguarding digital assets.

**Security Expectations**: Custodians are generally expected to implement strong security measures to protect client assets. The choice between hot, warm, or cold storage, multi-signature wallets, hardware security modules (HSMs), etc., is typically left to the operator's discretion, based on their risk assessment and technological capabilities. The HTP's oversight would likely focus on the overall security framework and risk management rather than prescribing specific technological solutions.

**No specific definition**: Belarus **does not have a specific legal definition of a "qualified custodian"** analogous to those found in other jurisdictions (e.g., the SEC's definition in the US for registered investment advisers).

**Functional Equivalent**: Within the Belarusian framework, an HTP resident that is authorized by the HTP administration to perform digital asset storage services for clients effectively *acts as* the qualified custodian. The "qualification" stems from achieving and maintaining HTP residency and adhering to the HTP's supervisory requirements.

As of my last update, there are **no widely reported pending legislative changes specifically targeting digital asset custody** that would significantly alter the existing HTP-centric framework in Belarus. The country has largely maintained its approach under Decree No. 8 since its implementation.

However, digital asset regulations are dynamic globally. The HTP administration might issue internal guidelines or recommendations for its residents, but major legislative overhauls are not publicly anticipated.

**Exclusion from HTP residency:** This is the most significant regulatory action against licensed entities.

**Criminal prosecution:** Against individuals or groups operating illegally (outside HTP's framework), engaging in fraud, or money laundering.

**Regulator Name:** Hi-Tech Park (HTP) Administration

**Entity Targeted:** **WhiteBird LLC** (the Belarusian legal entity associated with the WhiteBIT crypto exchange)

**Violation Type:** Failure to comply with the requirements for Hi-Tech Park residency and the norms of Decree No. 8. While specific details are often not fully disclosed by HTP, such exclusions typically stem from operational deficiencies, non-compliance with AML/CFT standards, or failure to meet the requirements of the special legal regime.

**Penalty Amount:** Loss of HTP residency (effectively, revocation of its operating license in Belarus). No specific monetary fine for the exclusion itself is usually reported.

**Outcome:** WhiteBird LLC was excluded from the HTP. This led to WhiteBIT announcing the cessation of services for residents of Belarus as of March 2024.

HTP official announcement of exclusion (in Belarusian)

WhiteBIT voluntarily exited Belarus in 2022, not as a new announcement

Belarusian tech news coverage (dev.by, in Russian)

**Regulator Name:** Ministry of Internal Affairs (MVD), Investigative Committee of Belarus, Financial Monitoring Department (FMD) of the State Control Committee.

**Entity Targeted:** Individuals and organized criminal groups operating unregistered crypto exchanges, engaging in investment fraud schemes involving crypto, or using crypto for money laundering.

**Violation Type:** Illegal entrepreneurial activity (operating a crypto exchange without HTP registration), fraud, money laundering, theft of crypto assets.

**Penalty Amount:** Varies greatly. These are criminal cases, leading to arrests, investigations, and potential imprisonment, confiscation of assets, and restitution orders. The "penalty amount" is not a fixed fine but relates to the scale of the illicit activity (e.g., millions of dollars laundered or stolen) and subsequent asset seizures.

**Date:** **Ongoing trend throughout 2021-2024.** Numerous reports describe such operations being uncovered. It's difficult to pinpoint a single "most significant" one, as they often follow a similar pattern. Examples often involve sums ranging from hundreds of thousands to several million USD equivalent in crypto.

**Outcome:** Arrests, initiation of criminal proceedings, asset seizures (including crypto and traditional assets), and potential convictions with prison sentences.

**Source URLs (Examples of such reports):**

MVD report on arresting a group for operating an illegal crypto exchange and laundering millions (June 2023, in Russian)

Investigative Committee report on a large-scale crypto fraud investigation (October 2022, in Russian)

FMD report on preventing cryptocurrency-related crimes (May 2023, in Russian)

BelTA (state news agency) report on crypto fraud arrests (July 2022, in Russian)

The HTP Administration taking regulatory action by revoking the residency of non-compliant crypto companies (e.g., WhiteBird). This is the most direct regulatory "fine" equivalent for licensed entities, as it removes their legal right to operate.

Law enforcement agencies (MVD, Investigative Committee, FMD) aggressively pursuing criminal cases against individuals and groups involved in unregistered crypto operations, fraud, and money laundering. These cases typically result in arrests, asset seizures, and criminal charges rather than administrative fines.

**Token (cryptocurrency):** A record in a distributed ledger technology (blockchain) or other information system that meets the characteristics defined by HTP regulatory acts.

Belarus regulates crypto banks as distinct licensed operators conducting specific token-related transactions using multiple currencies, rather than a generic software-hardware complex for all token activities.

**Crypto-exchange operator:** An HTP resident legal entity that carries out activities for the exchange of tokens for other tokens, fiat money, or electronic money through a crypto-exchange.

**Other activities related to tokens:** Activities such as creating and placing tokens, operating other platforms using tokens, providing services for storing tokens, and other activities determined by the HTP Supervisory Board.

**Becoming a resident of the Hi-Tech Park (HTP):** This is the fundamental prerequisite. HTP residents benefit from special tax regimes and legal frameworks.

**Obtaining specific permissions from the HTP administration:** Once an HTP resident, an entity intending to engage in virtual asset activities must apply for and receive permission from the HTP administration to perform specific types of token-related activities (e.g., operating a crypto-exchange, providing custody services).

Exchanges (Crypto-exchange operators) in Belarus are now regulated under a framework that authorizes 'cryptobanks,' which combine token services with traditional banking operations, as of January 16.

**Specific Permission:** To act as a "crypto-exchange operator" or "operator of a token exchange platform." This involves exchanging tokens for fiat money, electronic money, or other tokens.

**Custody Providers (Virtual Asset Service Providers - VASPs offering custody):**

**Specific Permission:** Activities related to "other platforms using tokens" or "providing services for storing tokens." This covers the secure storage and management of virtual assets on behalf of clients.

**Payment Processors (handling virtual assets):**

**Specific Permission:** If the payment processor directly handles virtual assets (e.g., converting crypto to fiat for merchants, facilitating crypto payments), it would likely fall under "operator of a crypto-exchange" or "operator of other platforms using tokens" or "other activities related to tokens" requiring specific HTP permission.

**Statutory Fund:** While there isn't a specific statutory fund requirement for *crypto activities themselves*, a company must establish a Belarusian legal entity and meet the minimum statutory fund requirements for legal entities in Belarus (currently a very low amount for LLCs, but may be higher for JSCs).

**Security Deposit:** For HTP residents acting as **crypto-exchange operators or token exchange operators**, a special security deposit is required. This deposit must be maintained in a separate bank account in Belarus and is currently **USD 500,000 (or equivalent in EUR)**. This deposit serves as a guarantee for clients' funds and assets.

**AML/KYC (Anti-Money Laundering / Know Your Customer):**

HTP residents engaging in virtual asset activities are subject to **strict AML/CFT (Combating the Financing of Terrorism) requirements** in line with international standards, particularly those of the Financial Action Task Force (FATF).

Decree No. 8 specifically mandates compliance with AML/CFT legislation. This includes:

Implementing robust KYC procedures for all clients (identification, verification).

Monitoring transactions for suspicious activities.

Reporting suspicious transactions to the relevant financial intelligence unit (FIU) – the Department of Financial Monitoring of the State Control Committee of Belarus.

Maintaining detailed records of all transactions and client data.

Appointing an AML/CFT compliance officer.

Implementing internal control programs and training staff.

A **Belarusian legal entity** must be established and registered as an HTP resident. This implies a physical presence, office space, and local management in Belarus.

The HTP administration will oversee compliance and operations.

Belarus has a data protection law established in 2021 and is currently implementing new government measures to strengthen national cybersecurity (as of 2026), but the claim's assertion of 'robust IT infrastructure, cybersecurity measures, data protection protocols, and internal control systems' is outdated and does not reflect the evolving legal and regulatory landscape.

**Audit:** Annual audits by independent auditors are required.

**Qualified Personnel:** Experienced and qualified management and staff, particularly for compliance, IT security, and financial operations.

**Business Plan:** A detailed business plan outlining the intended activities, operational model, risk management strategies, and financial projections is necessary for HTP admission.

**Establish a Belarusian Legal Entity:** Form a legal entity (e.g., LLC) in Belarus.

Belarusian entities must prepare application documents, but specific requirements are being updated to align with new international (Antarctic Treaty consultative status) and domestic (AI standards in 2026) regulatory frameworks.

Business plan detailing the proposed activities, including the use of blockchain technology and virtual assets.

Copies of statutory documents of the legal entity.

Information about the company's management and founders.

**Submit Application to HTP Administration:** The application and supporting documents are submitted to the HTP administration.

**Due Diligence and Review:** The HTP administration conducts a thorough review of the application, business plan, and the applicant's background. They assess the project's innovativeness, economic viability, and compliance with HTP criteria.

**Decision by HTP Supervisory Board:** The HTP Supervisory Board makes the final decision on admission.

**Registration as HTP Resident:** Upon approval, the company is registered as an HTP resident.

**Specific Application:** Once an HTP resident, the company must submit a separate application to the HTP administration specifically requesting permission to engage in virtual asset activities (e.g., crypto-exchange operations, custody services).

**Detailed Operational Plan:** This application will require an even more detailed operational plan for the specific crypto activities, including:

Technical specifications of the platform/systems.

Belarus has shifted from standard risk management policies to conducting military drills with Russian nuclear weapons, reflecting a high-risk national security posture.

Belarus has tightened internal control procedures over internet access, including restrictions on mobile data and reduced connection quality.

Proof of the security deposit for crypto-exchange/token exchange operators.

**Review and Approval:** The HTP administration reviews these detailed plans for compliance with Decree No. 8 and related HTP internal regulations. They may conduct further checks or request additional information.

**Granting of Permission:** Upon successful review, the HTP administration grants permission for the specific virtual asset activities.

This is the primary legal act. Finding an official English translation can be challenging. You often find summaries or unofficial translations by legal firms. The original Russian text is available on the National Legal Internet Portal of Belarus.

**National Legal Internet Portal of Belarus (Russian original):** https://pravo.by/document/?guid=12551&p0=Pd1800008&p1=1&p5=0

*Note: For an English understanding, it's often necessary to consult legal firms specializing in Belarusian law, as official translations may not be readily available or up-to-date on government sites.*

**Hi-Tech Park (HTP) Official Website:**

This website provides general information about the HTP, its residents, and the application process, though specific detailed regulations for crypto activities might be found through direct consultation or within the HTP resident's internal documentation.

**Note:** If a payment processor only handles fiat currency payments for businesses involved in crypto (but doesn't touch crypto itself), they would generally be subject to standard Belarusian banking/payment services regulations, not necessarily HTP Decree No. 8. However, given the HTP's nature, many such services would be part of an HTP resident's overall offering.