Belarus Establishes Regulated 'Cryptobanks' Under State Economic Zone Framework
Belarus has introduced a regulatory structure for specialised financial institutions that combine digital token operations with traditional banking services, following presidential approval on 16 January.
President Alexander Lukashenko authorised Decree No. 19, which creates a legal category for so-called "cryptobanks" operating under strict state supervision. The framework restricts these entities to joint-stock companies holding residency within the country's High-Tech Park, a designated special economic zone administered by government authorities.
Under the decree, cryptobanks must register with the National Bank of the Republic of Belarus and submit to oversight from both the central bank and High-Tech Park regulators. The dual supervision model requires compliance with existing legislation governing non-bank credit and financial organisations, alongside adherence to directives from the Park's supervisory board.
The regulatory definition describes cryptobanks as institutions authorised to conduct token-related transactions whilst providing standard banking, payment processing, and ancillary financial services. Officials claim the structure aims to deliver improved transaction speed and operational efficiency for digital asset activities, though implementation details remain unspecified.
Market entry depends on meeting two mandatory criteria. Applicants must first secure resident status within the High-Tech Park's administrative boundaries. Following this, firms must gain entry to a dedicated registry maintained by the central bank before commencing operations.
The decree represents the latest step in Belarus's strategy to centralise cryptocurrency activity under state-controlled infrastructure. In March of the previous year, Lukashenko instructed government ministries to expand domestic crypto mining capacity by deploying data centres in regions with excess electricity generation.
Belarus has simultaneously moved to restrict access to foreign cryptocurrency platforms. Authorities blocked major international exchanges including Bybit, BingX, Bitget, and OKX on 10 December, citing mass media legislation as justification. State regulators had previously limited cryptocurrency trading for fiat currency to domestic exchanges and approved service providers registered within the High-Tech Park, according to regulations enacted on 20 September of the preceding year.
The regulatory architecture channels digital asset commerce through entities subject to government vetting and direct supervisory control, effectively creating a closed-loop system for cryptocurrency operations within Belarusian borders.
Industry impact and market implications
Belarus's cryptobank framework illustrates an emerging regulatory model in which governments seek to maintain cryptocurrency activity whilst enforcing strict state oversight. The dual supervision structure, combining central bank authority with special economic zone governance, may serve as a template for jurisdictions attempting to integrate digital assets into existing financial regulatory systems without ceding control to decentralised or offshore entities.
The requirement that cryptobanks operate exclusively within the High-Tech Park creates a geographically and administratively bounded ecosystem. This approach contrasts sharply with regulatory frameworks in jurisdictions such as the European Union or United Kingdom, where digital asset service providers typically register under national financial conduct authorities but operate across broader markets.
Blocking access to international exchanges whilst mandating domestic alternatives suggests Belarus intends to capture transaction volume and associated economic activity within its borders. However, enforcement challenges are likely, given the technical capacity of users to access foreign platforms through virtual private networks or peer-to-peer channels. The effectiveness of such restrictions typically depends on technical sophistication of blocking mechanisms and the regulatory resources allocated to monitoring compliance.
For international cryptocurrency platforms, Belarus represents a market now largely closed to direct operations. Exchanges unable or unwilling to establish High-Tech Park residency face exclusion, potentially fragmenting liquidity and reducing competitive pressure on domestic providers. This regulatory posture may discourage foreign investment in Belarusian digital asset infrastructure if international firms view the compliance burden and operational constraints as prohibitive.
The cryptobank model raises questions about the practical separation between token operations and traditional banking functions. Regulatory clarity on capital requirements, reserve ratios, and consumer protection standards for these hybrid entities will determine whether the framework can sustain institutional participation or whether it functions primarily as a licensing mechanism for state-aligned operators.
Energy surplus allocation to mining operations suggests Belarus views cryptocurrency activity as an economic development strategy, particularly in regions with underutilised electricity generation capacity. The viability of this approach depends on global mining economics, energy costs relative to international competitors, and the regulatory stability of the framework itself.
