Belarus took another step in legalising crypto by creating a legal framework for "crypto banks" earlier in January. Although the new rules stipulate an innovative mix of crypto activity with traditional banking services, they also mean that the Belarusian government is eager to retain tight control over the country's crypto segment.

On January 16, Belarus' President Alexander Lukashenko signed a decree "On crypto banks and certain issues of control in the area of digital tokens".

"The document aims to strengthen Belarus' image as a leader in the field of financial IT technologies and provides for the creation of conditions for the operation of crypto banks in the country," said an announcement on the president's web site.

The decree stipulates that crypto banks — entities offering financial services involving cryptocurrencies — will be treated as joint stock companies with the right to combine crypto activities with traditional banking services, such as payments or loans.

"To be admitted to the market, a crypto bank must have the status of a resident of the High-Tech Park and be added to the Belarusian National Bank's register of crypto banks," reads the statement.

That means that, to be able to legally operate in Belarus, a crypto bank will have to be registered as a technology firm in the Minsk-based economic zone that offers tax incentives and a preferential legal regime to IT and tech companies in Belarus. However, in addition to being overseen by the High-Tech Park's board, crypto banks will also be regulated by Belarus' financial authorities.

"This dual regulation will allow crypto banks to offer their customers innovative financial products that combine the advantages of traditional banking operations with the technological sophistication, speed, and convenience of transactions with digital tokens," concludes the statement. 

Crypto-friendly country?

This new initiative doesn't come as a surprise, as Belarus was one of the first countries in the former Soviet Union to legalise crypto activities. Back in 2017, the presidential decree "On the development of the digital economy" laid the foundations of a legal framework for crypto operation in the country.

Crypto gained even more significance for Belarus after February 2022, when international sanctions were slapped on the country over Belarus' role in Russia's invasion of Ukraine. Due to the sanctions, operations of several Belarusian banks were significantly curtailed. As a result, local companies were forced to explore alternative payment structures for international trade with those countries which didn't join the sanctions. One of those payment options was crypto.

Meanwhile, Belarus' economy is closely interlinked with that of Russia, also hit by the international sanctions, and both countries are believed to be using crypto in global trade as an alternative to traditional banking channels, affected by the sanctions.

Some reports suggested that crypto transactions linked to sanctioned entities amount to tens of billions of dollars, and well-known crypto platforms have been allegedly implicated in questionable activity that may facilitate sanctions avoidance. Still, due to the anonymous nature of crypto, finding proof of any nefarious activity is often difficult — especially in a situation involving companies from countries under Western sanctions, such as Russia or Belarus.

Lukashenko himself urged Belarusian banks to use crypto as a response to Western sanctions, touting digital assets as something of a lifeline amid economic pressure from the sanctions.

In addition, Belarus has been exploring crypto mining as a possible revenue source for its cash-strapped economy.

In March 2025, Lukashenko instructed his energy minister to begin developing the country’s cryptocurrency mining industry, signaling a growing intent to generate additional revenue streams from the country’s excess energy supplies. 

“Look at [crypto] mining,” Lukashenko was quoted as saying back then by state-run Belarusian wire service BelTA. “If it is profitable for us, let’s do it. We have excess electricity. Let them make this cryptocurrency and so on.”

So far, however, Belarus has not emerged as a major player in the crypto mining segment. 

Crypto under tight control

At first sight, by creating a legal framework for crypto banks' operations, Belarus has apparently made significant progress towards bridging traditional financial services with crypto — something that major financial institutions in various countries, including the United States, have been exploring in the past year or so.

The Belarusian government claims that its layered approach, which subjects crypto banks to both financial and technological oversight, is set to foster innovative products that blend conventional banking services with efficiencies contributed by token-based transactions. 

However, in reality, the new rules stipulate that crypto services should be provided only through licensed entities already embedded in the country's financial system. The crypto bank framework basically narrows participation in this segment to entities willing to operate within the country’s regulatory parameters.

The Belarusian government says that the recent decree is intended to strengthen Belarus’s image as a financial IT hub. True, Belarus did emerge as a promising IT country back in the 2000s and 2010s, not least thanks to the High-Tech Park, inaugurated in 2005. However, many tech companies and highly qualified IT professionals left the country between 2020 and 2022 due to repressions in the wake of the 2020 presidential election and the global sanctions imposed on Belarus.

At present, the crypto bank framework reinforces a long-running policy approach that permits crypto only within clearly defined, state-approved channels. 

Controlled approach

The crypto bank regulations did not emerge in isolation though, but rather followed a series of gradual policy signals from the Belarusian leadership. In September 2025, Lukashenko publicly directed lawmakers to develop “clear and transparent rules” for the country’s crypto segment. In doing so, he framed digital assets as an area where innovation should be encouraged, but only alongside tight mechanisms of state oversight and control.

This position was reiterated shortly afterward, when the president called on domestic banks to broaden their use of crypto-based payment instruments. The remarks suggested growing official interest in integrating digital assets into the financial system under government supervision.

At the same time, the Belarusian authorities continued to narrow the space for unregulated crypto activity in the country. In December 2025, access to several major offshore crypto exchanges was blocked in Belarus - formally on the grounds of advertising violations. However, the move was widely interpreted as part of a broader effort to curb activities in the crypto market that were not controlled by the country's authorities.

Later that same month, Lukashenko signed a decree banning citizens from trading crypto through foreign exchanges, basically restricting activity of that kind to platforms registered within the country. 

As a result, cryptocurrencies remain legally recognised in Belarus, but regulatory developments over the last few months clearly redirected the segment toward a tightly controlled domestic market with limited access to the global crypto industry.