Belarus Commits to Ban P2P Crypto Trading to Fight Fraud

The country will still allow people to buy and sell cryptocurrencies through registered exchanges.

Belarus is working on a partial cryptocurrency ban.

The country’s interior ministry said in a statement on Sunday that fraudsters are using P2P encryption services to cash out illicit funds.

The statement added that the agency is working on legislation to ban transactions of “cryptocurrency exchanges between individuals.”

“Since the beginning of the year, employees of the Cybercrime Suppression Unit have stopped the activities of 27 citizens offering illegal cryptocurrency exchange services, whose total illegal earnings were close to 22 million rubles ($8.7 million),” the statement said.

It also said that the ministry will work to restrict crypto P2P services so that only crypto transactions are allowed through registered exchanges, making it “unable to withdraw funds obtained through criminal means.”

P2P (Peer-to-Peer) service means that two parties interact directly without the involvement of a third party.

Belarus is generally friendly to cryptocurrencies. The country legalized digital asset trading in 2017, and earlier this year, blockchain data firm Glassnode named it one of the top 10 cryptocurrency tax-friendly countries.

A new law provides tax exemptions for individuals and businesses dealing in cryptocurrencies. The idea is to boost the digital economy and help the tech industry, and the law will be reviewed this year.

Back in 2020, the state-owned Bank of Belarus launched a cryptocurrency exchange that allows Belarusians and Russians to buy bitcoin using Visa payment cards.