Belarus President Aleksandr Lukashenko has called for the urgent finalization of rules governing cryptocurrencies and digital tokens. In remarks made on September 5, which were reported by the state news agency BelTA, Lukashenko expressed frustration over the sluggish progress in implementing the directives he issued in 2023.

Lukashenko stated that his instructions aimed at developing comprehensive regulations are yet to yield finalized documents. He stressed the need for “clear rules of engagement” and effective oversight mechanisms, asserting that Belarus must adapt to the global rise of cryptocurrency while simultaneously safeguarding investors and ensuring financial stability.

What to know:

• Lukashenko has pointed out the delays in setting up regulations for digital tokens and criticized deficiencies noted by an inspection from the State Control Committee that highlighted violations at several crypto platforms.
• He remarked that a considerable number of funds sent abroad by Belarusian investors often do not find their way back, a situation he labeled as unacceptable.
• He emphasized that new supervisory measures must support operational stability while ensuring that both domestic and international companies can thrive within Belarus’ “digital haven.”

The President attributed the challenges to the rapid advancement of technology outpacing existing legislation, calling for a division of roles among regulators and the Hi-Tech Park, which oversees much of Belarus’ digital economy. He instructed these bodies to use their specialized knowledge to establish regulations that would reassure businesses—both local and foreign—of their ability to operate smoothly within Belarus.

These remarks follow Lukashenko’s proposal earlier this year regarding the potential use of the country’s surplus electricity for digital asset mining. This idea emerged after he noted that the United States had considered creating a strategic reserve of cryptocurrencies.

Belarus, noted for its early moves in regulating the sector through Decree No. 8 on December 21, 2017, aimed to attract foreign blockchain startups and establish legal frameworks for digital assets. However, despite these initiatives, the regulatory environment remains incomplete, and Lukashenko’s latest comments underscore a growing urgency to synchronize the country’s regulatory goals with its technological aspirations.