Belarus Wants to End Opacity of Crypto Transactions

Belarus intends to achieve transparency in the field of cryptocurrency mining and token circulation with the help of a special training manual. This is reported by the local state newspaper BelTA with reference to the head of the State Control Committee (KGC) of Belarus Vasily Gerasimov.

According to Gerasimov, the authorities are developing criteria for suspicious financial transactions, which will be provided to participants in the banking system. Gerasimov did not specify the details of the criteria, but noted that KGC will participate in the regulation of the industry.

"There [in the banking system] they refuse to make such a [crypto] payment and provide information to us, and we are already further figuring out what the essence of the matter is," he said.

Gerasimov added that Belarus has already "developed technologies to identify illegal token payment schemes." According to him, the country has deployed a special register of crypto wallets seen in shadow schemes. Recently, seven dozen wallets have already been included in it, he stressed.

"And the more we see these crypto wallets, the more transactions we can track," said the KGC chairman.

However, there are still technological solutions in the cryptocurrency market that make it difficult to spy. According to Gerasimov, the decentralization of the crypto market and the anonymity of participants in operations "leads to the impossibility of creating clear algorithms for controlling transactions." He also stated that the Belarusian authorities cannot influence foreign crypto exchanges, but did not specify why.

While the authorities are looking for a way to regulate the cryptocurrency market, the local Central Bank intends to put an end to the creation of a digital state currency by the end of 2023. According to Pavel Kallaur, Chairman of the Board of the National Bank of Belarus, Belarus is working on building a demo version of the digital Belarusian ruble platform in order to test it.

When and if the idea of a digital Belarusian ruble is approved, the authorities will have to make comprehensive changes in the Civil, Banking, Tax Codes, and budget legislation. At the same time, the National Bank doubts that Belarusians need a digital state currency. Most of all, the local financial regulator sees potential in cross-border payments.

It should be reminded that a number of Belarusian banks have been sanctioned by the European Union, the United States and the United Kingdom. Moreover, three Belarusian banks were completely excluded from the SWIFT payment system.