Belarus is gearing up to implement a ban on Peer-to-Peer (P2P) cryptocurrency transactions, including popular cryptocurrencies like Bitcoin, within the country.
The Belarusian Ministry of Internal Affairs announced this plan to ban P2P crypto exchanges for individuals through Telegram on July 2, 2023. The Ministry cited the rising rate of cybercrimes as the main reason for taking this action.
According to the announcement, “the Ministry of Internal Affairs is working on legislative innovations that prohibit transactions for the exchange of cryptocurrency between individuals.”
This move comes as a response to the increasing involvement of individuals in illicit activities related to cryptocurrency exchange. According to the Ministry, its cybercrime counteraction units have already identified the operations of 27 individuals this year who were offering illegal services for cryptocurrency exchanges. These individuals had managed to amass illegal earnings amounting to nearly 22 million Belarusian rubles (approximately $8.7 million). The Ministry further highlighted that scammers highly sought after these particular services because it enables them to launder and convert stolen funds.
To counter these illicit activities, the Ministry’s new legislation aims to establish a system similar to the process used for exchanging foreign currencies in the country. Citizens will only be allowed to engage in financial transactions involving cryptocurrency through authorized (Hi-Tech Park) HTP exchanges. By doing so, the Ministry aims to make it difficult for perpetrators of cyber fraud to withdraw funds acquired through illicit activities and, consequently, make engaging in cyber fraud within Belarus unprofitable.
Interestingly, this recent move by the Belarusian government contradicts its prior actions. In February 2022, the Belarusian President, Belarusian President Alexander Lukashenko sanctioned a decree officially endorsing the unrestricted use of cryptocurrencies, including Bitcoin, in the country. This decree also provided a legal framework for the Belarus Hi-Tech Park to establish and oversee a registry of crypto wallet addresses associated with illicit activities. Notably, the decree laid out protocols and criteria for the government to confiscate cryptocurrency from individuals involved in criminal pursuits.
As the Belarusian government takes a firm stance against P2P cryptocurrency transactions, it remains to be seen how this ban will impact the country’s crypto landscape and its efforts to combat cybercrimes.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with Markets PRO, DeFi Planet’s suite of analytics tools.”
