Belarus Establishes Legal Framework for Crypto Banks

What the Decree Establishes

According to the presidential website, the dual regulation framework will allow crypto banks to “offer clients innovative financial products that combine the advantages of traditional banking operations with the technological efficiency, speed, and convenience of digital token transactions.”

The new framework is intended to ease access for local users and businesses to hybrid financial products that bridge fiat and digital currencies. Crypto banks are expected to reduce friction in transactions between traditional and crypto-based assets while providing clear regulatory boundaries to ensure all crypto operations are fully backed.

Belarus’s Crypto-Friendly History

Belarus has demonstrated early interest in cryptocurrency regulation. A 2017 decree established tax-free conditions for cryptocurrency mining and trading, exempting individuals from declaring crypto income. President Lukashenko has actively promoted virtual payment systems and bitcoin mining initiatives, including utilizing surplus electricity to power mining farms in the Mogilev region.

The country is also preparing for the full-scale launch of its digital ruble, anticipated in the second half of 2026. This central bank digital currency will further integrate digital assets into Belarus’s national financial system, complementing the new crypto banking framework.

Global Context: Belgium’s KBC Group Moves Forward

The Belarus announcement comes as traditional banks worldwide explore cryptocurrency integration. Belgium’s KBC Group announced on January 16, 2026, that it will become the first local bank to permit retail clients to trade cryptocurrencies. The service launches February 16, 2026, via its Bolero platform, operating under the European Union’s Markets in Crypto-Assets Regulation (MiCAR) rules.

KBC Group initially plans to offer Bitcoin and Ethereum on an execution-only basis, requiring clients to pass a risk-awareness test before trading. This approach reflects the more consumer-protection-focused regulatory environment in the EU compared to Belarus’s business-facilitation approach.

What Remains Unclear

Key implementation details have not yet been publicly disclosed, including:

• Specific operational guidelines for the dual regulation model
• Exact timeline for the first crypto banks to commence operations
• Initial capital requirements for these institutions
• Licensing procedures and application processes
• Consumer protection mechanisms and deposit insurance provisions

Implications for Digital Finance

Belarus’s initiative positions the country as an active participant in the global shift toward tokenized assets and blockchain integration within traditional banking. The framework reflects a growing trend toward on-chain finance as financial institutions worldwide explore blockchain technology for payments, trading, and asset management.

The combination of crypto banking licenses, the upcoming digital ruble, and existing tax incentives creates a comprehensive digital finance ecosystem that could attract cryptocurrency businesses and blockchain projects to Belarus.

What Businesses and Users Should Know

• Monitor official announcements from Belarusian regulatory bodies for specific operational guidelines regarding the new crypto banking framework
• Businesses considering hybrid financial products should assess regulatory compliance requirements under this evolving framework
• Individuals and entities engaged in cross-border digital asset transactions should stay informed about the evolving legal landscape in Belarus and its potential implications
• For comparative analysis, observe the implementation of the EU’s MiCAR framework, as demonstrated by KBC Group, to understand differing regulatory approaches in the global digital finance sector

The anticipated launch of crypto banks and the digital ruble in the second half of 2026 will test whether Belarus’s regulatory approach can successfully balance innovation with financial stability and consumer protection.