In a surprising move, the foreign ministry of Belarus is developing new legislation to ban peer-to-peer (P2P) cryptocurrency transactions, including popular cryptocurrencies like Bitcoin. This decision contradicts the previous stance of Belarus, which had allowed the free circulation of cryptocurrencies just a year ago.

The Ministry of Foreign Affairs (MFA) of Belarus made an official announcement on July 2nd through Telegram, revealing its intention to outlaw P2P cryptocurrency transactions for individuals. The reasoning behind this decision is attributed to the high rate of cybercrime in Belarus, with local prosecutors having already halted 27 individuals from engaging in illegal crypto exchange services, resulting in earnings of approximately 22 million Belarusian rubles ($8.7 million).

The MFA argues that P2P cryptocurrency services are attractive to criminals who utilize them to convert stolen funds and transfer money to organizers or participants of criminal schemes. To combat this illicit activity, individuals will only be allowed to exchange cryptocurrencies through registered cryptocurrency exchanges affiliated with Belarus Hi-Tech Park (HTP). Additionally, the MFA intends to establish measures that make it impossible to withdraw funds obtained from illegal activities, similar to the existing process for exchanging foreign currencies.

Frequently Asked Questions (FAQs)

1. Why is Belarus planning to ban P2P cryptocurrency transactions?

The Belarusian government has expressed concerns over the high rate of cybercrime in the country. They believe that P2P cryptocurrency transactions are being used by criminals to convert and transfer stolen funds, which poses a threat to the financial security of the nation.

2. When did Belarus initially allow the free circulation of cryptocurrencies?

In 2022, Belarusian President Alexander Lukashenko signed a decree endorsing the free circulation of cryptocurrencies like Bitcoin in the country.

3. How will the ban on P2P cryptocurrency transactions be enforced?

The MFA plans to only permit individuals to exchange cryptocurrencies through registered cryptocurrency exchanges affiliated with Belarus Hi-Tech Park (HTP). This move will restrict P2P transactions and make it difficult for individuals to withdraw funds obtained from illegal activities.

4. What other measures does Belarus plan to implement to combat cybercrime?

Aside from banning P2P cryptocurrency transactions, Belarus intends to establish measures that make it impossible to withdraw money obtained from illegal activities, similar to the process for exchanging foreign currencies.

5. Will this ban affect other forms of cryptocurrency trading in Belarus?

At the moment, the ban specifically targets P2P cryptocurrency transactions. However, further regulations on cryptocurrency trading in Belarus cannot be ruled out in the future.

Overall, Belarus is taking steps to strengthen its cybercrime prevention efforts, clamping down on P2P cryptocurrency transactions in an effort to curb illegal activities involving cryptocurrencies.