The decree on the digital economy development has come into force in Belarus. However, the country has so far adopted only one regulatory act on cryptocurrency circulation.

On 28 March this Eastern European Republic became the first among its ex-Soviet counterparts to adopt a cryptocurrency-friendly legal framework, although it still lacks clarity how the decree, signed by the President of Belarus on December 21, 2017, will be implemented in practice.

The decree, which will last until 2049, allows foreigners, along with citizens of Belarus, to establish companies in a special economic zone High Technology Park (HTP).

According to the document, everyone in Belarus has got the right to mine, store, exchange, buy, bequeath and present tokens and cryptocurrency. If an individual is engaged in mining, it is not classified as an entrepreneurial activity.

To become residents of HTP, entrepreneurs or companies should be engaged in, among other things, the creation and training of neural networks, be operators of crypto-exchanges, mining centers, organizers of ICO projects, even if their tokens have features of securities.

The income tax for such companies is reduced to 9%, while the profit tax and VAT are completely abolished. The basic principle of taxation of HTP residents is 1% of gross proceeds. These funds will be used to further develop HTP.

Foreigners are also allowed visa-free entry to Belarus if they are either employees of companies registered in the HTP, or the founders of such companies.

At that time many IT specialists and experts called this decree a "revolution" for the entire IT sector of the country, and in particular for the cryptocurrency and blockchain industries. However, since the document was signed, only one normative act was adopted in the country. That is an act on the circulation of cryptocurrency, called the National Standard of Accounting and Reporting Digital Notes (Tokens). According to this act, the Belarusian central bank will not regulate the turnover of cryptocurrency assets. But it is emphasized that activities involving the use of cryptocurrencies and other tokens should be carried out in accordance with the recommendations of the Financial Action Task Force on Money Laundering (FATF).

Still, the Government of Belarus is not going to allow the use of cryptocurrencies in the domestic market outside the special economic zone. Only the Belarusian ruble is recognized as a legal tender on the territory of the country.