Extraterritoriality Belarus High-Technologies Park and CryptocurrencyDecember 1, 2018
Several cryptocurrency companies are expressing interest in Belarus to operate their companies on the principle of extraterritoriality.
Belarus High-Technologies Park have their own regulatory framework that has been composed exhaustively in a way to regulate extraterritoriality. The High Technologies Park is a special economic zone has attracted several companies after the regulation.
The model of extraterritoriality was primarily set forth by Malta. And, it was then adopted by Belarus.
By virtue of “extraterritoriality,” companies who are registered with this special economic zone will be able to take a sandbox styled advantage in their activities. They will be thus able to pursue digital innovation, and the members will be eligible for special tax and regulatory powers which will work to their benefit.
The HTP is working towards coming up with a detailed framework of regulation that will monitor the operations taking place in the cryptocurrency processes in Belarus.
Belarus, by virtue of executing the Eighth decree, provided a legal face to the initial coin offerings. This helps in regulating and legalizing cryptocurrency companies in the country.
HTP being a special economic zone had a major part to play concerning “Development of Digital Economy” as detailed in Decree No.8.
The administration team of HTP worked in synchronous mode with Belarus National Bank. The Bank functions as the “Financial Monitoring Department.” The Belarus National bank thus monitors the activities of the State Control Committee, other bodies, and international experts. The team will prepare the regulatory documents required for the cryptocurrency based businesses.
The financial requirements to execute the regulatory norms will comply with the established financial regulations. The regulations that are outside of the framework of rules will also be taken into consideration.
The data protection standards which are meant to protect the individual’s identity information are an equivalent to the General Data Protection Regulation of the EU.
The legal regulation that should be followed to regulate the affairs of the cryptocurrency businesses as proposed has been accepted by the Belarusian authorities.
The regulations provide for the norms applicable for new applicants who will be entering the cryptocurrency space. These regulations will also apply to platform operators, exchanges and also to ICOs. These regulations also propose the “internal control rules” for the smooth functioning of the companies.
The regulations are framed in a way to counter anti-money laundering (AML), includes counter financing of terrorism (CFT), and also the applicable know your customer (KYC) rules.
The Deputy Head of the National Bank of Switzerland stated that “Belarus has framed a unique digital asset management protocol.” This protocol will provide for a faster and simple regulation of the businesses. This development is sure to encourage further innovation and expansion in the cryptocurrency industry.