tl;dr
Belarus establishes a working group to combat illegal cryptocurrency transactions while balancing innovation in its regulated crypto sector, amid rising adoption and regional financial dynamics.
**Belarus Establishes Working Group to Tackle Illegal Crypto Transactions Amid Regulatory Evolution**
Belarus is taking a significant step to address unauthorized cryptocurrency activities, with the National Bank of the Republic of Belarus (NBRB) announcing the formation of a specialized working group to combat illegal transactions. The move underscores the country’s dual focus on curbing illicit crypto operations while fostering growth in the legal market.
The initiative, revealed following a meeting chaired by Deputy Governor Alexander Egorov, involved representatives from Belarusian banks and government-approved crypto firms. The discussions centered on tackling unlicensed cryptocurrency payments and cross-border transfers of illicit funds, with participants emphasizing the need for comprehensive solutions to counter shadow economy schemes.
**Balancing Regulation and Innovation**
While the NBRB reiterated its support for the legal crypto sector, the working group aims to address vulnerabilities in the market. The regulator highlighted the importance of collaborative efforts to develop strategies against fraud, aligning with Belarus’s broader goal of nurturing a robust digital economy.
Belarus has long been a pioneer in crypto regulation in Eastern Europe. Since 2017, a presidential decree legalizing mining and trading has allowed businesses to operate under a favorable framework at the Belarus Hi-Tech Park (HTP), which offers tax incentives and regulatory benefits. However, recent measures signal a tightening of oversight. In September 2024, private individuals and HTP-registered entrepreneurs were barred from using non-Belarusian exchanges, a move aimed at preventing capital flight and illicit fund transfers.
**Crypto’s Role in a Sanctioned Economy**
Cryptocurrencies have gained traction in Belarus as an alternative to traditional finance, particularly amid sanctions that restrict access to global financial systems. President Alexander Lukashenko noted in 2025 that cross-border crypto payments reached a record $1.7 billion in the first seven months of the year, with projections of $3 billion by year-end. He acknowledged the growing importance of crypto in facilitating transactions, stating, “Cryptocurrency-based transactions are more active than ever.”
Recent developments, such as Russia’s e-commerce giant Wildberries introducing crypto payments in Belarus via HTP-registered exchange Whitebird, highlight the sector’s expansion. However, the NBRB’s governor, Roman Golovchenko, has emphasized the need to update regulations to keep pace with the industry’s rapid growth, aiming to secure “breakthrough results” in crypto adoption.
**Regional Context and Global Implications**
While Belarus adopts a cautious approach, neighboring Russia has increasingly leveraged cryptocurrencies to circumvent sanctions. Belarus’s proactive measures reflect a strategic balance between fostering innovation and mitigating risks, ensuring the crypto market remains a tool for economic resilience rather than a conduit for illicit activities.
As the working group begins its operations, the NBRB’s efforts will be critical in shaping Belarus’s crypto landscape, ensuring it remains a hub for legal innovation while safeguarding financial stability. The country’s evolving regulatory framework positions it as a key player in the broader Eastern European digital economy.