The Belarusian Government’s Proposed Ban on P2P Crypto Transactions
The Belarusian government is taking action to combat cybercrime by proposing a ban on peer-to-peer (P2P) transactions involving cryptocurrencies like Bitcoin. The Ministry of Foreign Affairs (MFA) of Belarus has revealed that the new legislation aims to address the increasing rate of illegal crypto exchange services and the use of P2P crypto services by fraudsters. Here are the key points regarding this development:
1. Proposed ban: The government plans to prohibit transactions for the exchange of cryptocurrency between individuals, allowing only exchanges for transparency and control purposes.
2. Crackdown on illegal services: Local prosecutors have already taken action against 27 citizens involved in illegal crypto exchange services, resulting in $8.7 million in illicit gains.
3. Combatting cybercrime: The decision to ban P2P crypto transactions is driven by the rampant use of such services by fraudsters to cash out, convert stolen gains, and transfer money within criminal networks.
4. Limiting exchanges: The ministry intends to restrict crypto exchanges to registered platforms only, imposing stricter regulations on the industry.
This move marks a significant departure from Belarus’ previously crypto-friendly policies. Last year, President Alexander Lukashenko implemented a crypto wallet registry to prevent illicit activities, and tax exemptions for crypto businesses were recently extended until January 2025.
Hot Take
The proposed ban on P2P crypto transactions by the Belarusian government is a surprising turnaround from its previously supportive stance on cryptocurrencies. While the goal is to combat cybercrime, this move may hinder the freedom and accessibility that P2P transactions provide. It remains to be seen how this legislation will impact the crypto industry in Belarus and whether it will effectively address cybercrime concerns.
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