Cryptocurrencies Soon To Be Legal and Subject to Tax
The decree that legalizes cryptocurrencies, initial coin offerings (ICOs) and smart contracts in Belarus will go into effect on March 28. Entitled “On the development of the digital economy,” it had been signed by President Alexander Lukashenko on December 21, as news.Bitcoin.com previously reported.
“The decree entitles legal entities and individual entrepreneurs who are residents of this High Technology Park (the HTP) to perform operations with tokens (such as cryptocurrency),” explained Iryna Chelyshava, an associate lawyer in the Belarusian law firm of Vlasova Mikhel & Partners. “Others can use tokens from the land of Belarus through residents of their HTP,” she chased on Jurist.
The HTP is a special economic zone using a special tax and legal regime in Belarus, analogous to Silicon Valley in the US. According to its website, 192 businesses that produce software products and supply IT services to customers from 67 countries worldwide are taxpayers of the playground, 35 percent of which are enterprises with 100% foreign investments.
The playground describes itself as “the key experimental site for the implementation of pilot projects,” including those predicated on cryptocurrencies. According to its announcement this week:
The HTP Administration draws your attention to the fact that Decree No.8 ‘On the development of the digital economy’ comes into force on March 28, 2018.
No Restrictions and No Taxes on ICOs
“The new decree legalizes ICOs, cryptocurrencies, and intelligent contracts,” that the HTP explained. It “doesn’t imply any constraints and unique conditions for its operations of production, storage, positioning, alienation, exchange of tokens, in addition to the actions of crypto exchanges and crypto platforms” Moreover, the park explained:
Activity such as mining, acquisition, alienation of tokens, carried out by individuals, are not entrepreneurial activities, and tokens are not subject to declaration. At the same time, until 2023, activities related to mining, the creation, acquisition and alienation of tokens are not taxed.
Chelyshava clarified the decree stipulates the definition of tokens, cryptocurrencies, and intelligent contracts. “The definition given in the decree to get cryptocurrency lists it as a variant of this blossom,” she hauled, including that “for the decree doesn’t provide the standards of cryptocurrency that could differentiate it.” In terms of smart contracts, the definition “is wide enough to encompass several approaches to the understanding of smart contracts which exist today,” she emphasized. For tokens, she wrote:
The decree does not specify the nature of the certain civil right, and therefore the concept of ‘token’ is provided with a high degree of flexibility.
By making intelligent contracts legal records, “Belarus becomes the first nation in the world to legalize intelligent contracts in the nation level,” that the HTP noted.
Anton Myakishev, the head of Microsoft’s Belarus office, told Reuters that “the decree is a breakthrough for Belarus,” adding that “it provides the business the option to create a leap ahead in its own development and enables foreign funds the option to return to Belarus and operate in comfortable conditions.”