Belarus tightens economic restrictions by confiscating millions of dollars in crypto

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Dmitry Gora, the head of the Belarusian investigative committee, told senior officials in the country that they had a problem with how to seize cryptocurrencies. Digital assets were first used in drug trafficking and then in economic crimes. According to Gora, law enforcement must discover a mechanism to confiscate digital assets. They also confiscated cryptos worth a few hundred million Belarusian rubles.

As an ally of Russia, Belarus legalized a wide range of crypto activities in May 2018 through a presidential decree. The objective was to boost the country’s digital economy. The document introduced tax cuts and other incentives for crypto entrepreneurs operating in Minsk’s Hello-Tech Park (HTP).

The Presidential Decree on Cryptographic Laws

During a speech in March 2021, President Alexander Lukashenko said he would tighten the country crypto laws, citing China as an example. Following the HTP officers’ claims, the Belarusian government later said it had no intention of enforcing stricter trade regulations. Additional reforms proposed by the Ministry of Finance would allow investment funds to acquire digital ownership.

The Department of Justice cleared the seizure of digital asset money as part of enforcement proceedings in April this year. In February, Lukashenko issued a decree ordering the creation of a special register for cryptocurrency wallets used for illegal purposes.

Senior subordinates,” according to Dmitry Gora, called cryptocurrencies “digital trash.” Gora said the government was seeking monetary compensation to compensate for the devastation they had caused.

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Dmitry Gora

certain procedures allow the country to deal with these issues quickly and efficiently.

According to Gora, law enforcement officials have discovered that both public and private entities are participating in the investigation. Therefore, the funds in the Investigative Committee accounts are in excellent regular cash.

The Ministry of Justice of Belarus controls the seizure of digital coins

According to the cryptopolite, the Ministry of Justice of Belarus established a legal framework for the confiscation of bitcoin funds in April. With this decision, President Alexander Lukashenko was following up on the order he issued regarding the country’s crypto space.

The Belarusian president signed it in February, ordering the creation of a separate registry for cryptocurrency wallet addresses used for illegal purposes.

The Justice Department also said authorities would report money from seized or confiscated digital assets in charge of criminal proceedings. Additionally, they can seize digital assets as part of forfeiture of a debtor’s assets in a document dated April 14, which also governs their valuation.

The ministry gave the Minsk government three months to implement Lukashenko’s latest crypto-related decree, which would come into effect.

The reform of the presidential decree aims to boost the country’s digital economy

With a presidential decree signed at the end of 2017 and put into effect the following May, Belarus authorized various cryptographic operations. In an effort to boost the country’s digital economy, it has provided tax breaks and other incentives to digital asset companies working in the Hi-Tech Park (HTP) in Minsk.

The former Soviet republic, a strong ally of Russia, still prohibits the use of cryptocurrency in payment transactions. Despite this, according to Chainalysis’ Crypto Adoption Index, Belarus is the third most crypto adopter in the region. This is because of the country’s active peer-to-peer market.

In March last year, Lukashenko hinted at a future tightening of the country’s crypto laws linked to China’s policy. It gradually became clear that the Belarusian government would not implement stricter regulations for the company. The Ministry of Finance also suggested reforms in February this year to allow investment funds to buy digital assets.

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