ICOs, Cryptocurrencies and Smart Contracts are Legalized in Belarus with Revolutionary Law

Belarus President Alexander Lukashenko today signed the law of regulating digital tokens, including bitcoin, initial coin offerings (ICOs), smart contracts and related issues. It is the first law to be implemented regarding to cryptocurrency world.

Adoption of the decree makes Belarus the first world’s jurisdiction with the overall legal regulation of businesses based on blockchain technology.

Tax Changes

The decree grants tax exemptions in regard to activities connected with digital tokens and cryptocurrencies.

Special norms will be introduced into local IT legislation: English law institutes for startups to 0% corporate tax, VAT-free, reduced personal income tax and other perks for IT companies until 2049.

Changes for Foreign and Local Companies

There will be possibility to attract specialists from abroad by High-Tech Park (HTP) Belarusian resident-companies. Besides, companies will be able to register in the HTP and there is no requirement to obtain work permits for foreign employees.

Moreover, in Belarus visa-free entry for foreign IT specialists will be over 180 days annually.

The major purpose of the document, as Lukashenko said is to provide conditions to attract IT companies to Belarus, supporting for them to open their representative offices and development centers in the country.

“The second goal of the document is to invest in the future. These are IT workers and education. The third goal is the application of cutting-edge financial instruments and technologies. Leading economies of the world are now familiarizing themselves with this new phenomenon.

In fact, Belarus becomes the first state in the world which opens up broad opportunities for the use of the blockchain technology. We have all opportunities to become a regional center of competence in this field,” Alexander Lukashenko said.