Finally the crypto magic started and here is the first country to legalize smart contract or cryptocurrencies. President Alexander Lukashenko signed on entitled “on the improvement of the digital economy.” Which legalizes cryptocurrencies, initial coin offerings, and smart contracts. Will enter into force in Belarus will move into effect on March 28.
The HTP is a very special economic sector. With a special tax and legal regime in Belarus, analogous to Silicon Valley in the US. As per its website, Software development products and IT services provider companies which are approx 192 from 67 countries worldwide are residents of the park. In which 35% are enterprises with 100% foreign investments.
Simple description of the park is “the main experimental site for the implementation of pilot projects,”. Consisting those based on cryptocurrencies. According to announcement,
“the HTP Administration draws your attention to the fact that Decree No.8 ‘On the development of the digital economy’ comes into force on March 28, 2018.”
No Restrictions and No Taxes
The new decree legalizes ICOs, cryptocurrencies, and smart contracts,” the HTP explained. It “does not enforce any restrictions and extra requirements. For the operations of creation, storage, placement, exchange of tokens, alienation. As well as the activities of crypto trading and crypto platforms.” Furthermore, the park clarified:
“Activity such as mining, acquisition, alienation of tokens, carried out by individuals, are not entrepreneurial activities, and tokens are not subject to declaration. At the same time, until 2023, activities related to mining, the creation, acquisition and alienation of tokens are not taxed.”
Chelyshava further told that “The definition given in the decree for cryptocurrency lists it as a version of the token.” She conveyed, adding that “for now the decree does not provide the criteria of cryptocurrency that would differentiates it from tokens.” As per smart contracts, the definition “is broad enough to encompass various approaches to the understanding of smart contracts that exist now,” she emphasized. For tokens, she wrote:
The decree does not specify the nature of the certain civil right. Therefore the concept of ‘token’ is provided with a high degree of flexibility.
By making this contract legal document,“Belarus becomes the first country in the world to legalize smart contracts at the country level, the HTP noted.”