Belarusian President Alexander Lukashenko signed a decree on Friday offering tax breaks and legal incentives for dealing in digital currencies in an effort to turn Belarus into an international tech haven, The National reported.
“Belarus will become the first government in the world that opens wide opportunities for the use of blockchain technology,” Lukashenko said in a statement on his website.
“We have every chance of becoming a regional center in this area,” he added.
The decree legalises business based on blockchain and all digital “tokens,” as Belarus seeks to become a global hub for raising funds via ICOs.
Revenue and profit from all operations using digital tokens will be exempt from taxes until 2023, while there’ll be measures to simplify the flow of venture capital between Belarus and other countries, according to a summary of the decree published by Viktor Prokopenya, one of the businessmen lobbying for the legislation.
To protect against fraudsters, the regulation would set capital requirements for operators of cryptocurrency exchanges. It would also introduce “smart contracts” in Belarus - self-executable computer-coded applications that serve as an alternative to traditional paper agreements.