Belarusian Bank Gets the Go-Ahead to Service Crypto Investors

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A bank in Belarus has effectively gotten the green light to process transfers related to digital assets. DFS, an affiliated company of Belveb Banking Holding’s member VEB Technologies, was recently registered as a resident of the High Technologies Park. The country’s special economic zone has already become home to many crypto businesses.

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Crypto Investment Platform to Pay Dividends to Bank Accounts

DFS LLC is the operator of Finstore.by, a platform for token sales and trading. Belveb Bank will provide its clients with regular banking services, the Belarusian news outlet Dev.by reported. Corporate entities and private individuals will be able to purchase tokens from various coin offering projects that Finstore hosts.

The first such sale begins on Nov. 1, 2019 and will be conducted on behalf of Belwest, a shoe manufacturer and supplier founded by the German concern Salamander. Finstore will offer 63,000 of its digital tokens and sell them for euros, Russian and Belarussian rubles. The platform plans to issue its own token next month which will be used to facilitate future deals.

Investors buying the coins from this and other offerings will enjoy a fixed income from their investments, much like with bank deposits, at least before interest rates in Europe entered subzero territory. They will also be able to withdraw their dividends to a regular checking account or a bank card account.

Belarus legalized crypto-related activities with a presidential decree signed by Alexander Lukashenko in late 2017. Decree №8 “On the Development of the Digital Economy” came into force on March 28, 2018 to regulate crypto exchange services, initial coin offerings, mining operations, and smart contracts. A five-year tax holiday and other incentives were introduced for HTP-registered crypto entities.

The decree provides legal definitions to key terms used in the crypto space. For example, ‘cryptocurrency’ has been described as “bitcoin, other digital sign (token) used in international circulation as a universal means of exchange.” To improve the decree’s implementation, Minsk adopted new accounting standards for the industry and later expanded the applicable regulatory framework.

HTP Registers 129 New Businesses Including Crypto Companies

Finstore is designed for buying and selling digital tokens representing securities – not exactly cryptocurrencies. But it is not the only digital asset trading platform operating out of Belarus. At least two other full-fledged crypto exchanges provide services to traders and investors under the preferential terms of their registration with the Belarus High-Tech Park.

Currency.com, for instance, facilitates the purchases and sales of decentralized cryptocurrencies such as bitcoin cash (BCH) and bitcoin core (BTC) with a choice of fiat currencies, including the euro, the U.S. dollar, the Russian and the Belarusian ruble. Another Belarus-regulated platform supporting trading pairs with BCH is Iexchange.

The number of crypto and blockchain businesses applying for HTP residency is constantly growing. According to the park’s website, 684 entities are currently registered in the special economic zone. Earlier this month, its supervisory board accepted another 129 new members, including crypto companies like Belveb’s affiliate DFS.

Do you think we are going to see more traditional banks involved in the crypto industry? Tell us in the comments section below.

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