Belarus wants to ban peer-to-peer crypto transactions and introduce legislation requiring citizens to use regulated crypto exchanges, according to a July 2 statement from the country’s Ministry of Interior (MVD). VKontakte page.
According to the ministry, cybercrime is rampant in the country, with scammers cashing out and converting stolen funds into cryptocurrencies.
MVD further claimed that since the beginning of the year, the country’s cybercrime unit has cracked down on the activities of 27 citizens who offer “illegal crypto exchange services”, noting that their total income from these illegal activities is about 22 million rubles ($22 million). 8.7 million).
To prevent the proliferation of these activities, the ministry is working on new “legislative innovations that will prohibit cryptocurrency exchange transactions between individuals.”
Once the law is passed, Belarusians will only be able to use regulated crypto exchanges registered with the country’s Hi-Tech Park (HTP) for their crypto transactions. The ministry added that the move would combat cybercrime and make it difficult for criminals to launder their money.
Part of the statement reads:
“It will make it impossible to withdraw money obtained through criminal means. Under such circumstances, it becomes simply unprofitable for information technology fraudsters to operate in Belarus.”
Meanwhile, the move contradicts previous attempts by the Belarusian government to make the country crypto-friendly. In 2022, President Alexander Lukashenko signed a decree that will support the free circulation of cryptocurrency.
Can Belarus ban work?
The viability of Belarus’ attempt to ban crypto transactions between individuals remains questionable, as cryptocurrencies are designed to escape censorship through P2P transfers.
Meanwhile, previous attempts by several countries to ban crypto transactions within their jurisdictions have led to an increase in peer-to-peer transactions. For example, when the Nigerian central bank banned commercial banks from offering their services for crypto-related transactions, the African country’s P2P trading volume soared to new highs.
Additionally, the news comes as Singapore, Thailand and South Korea have all announced new digital asset regulatory updates from July, indicating increased activity in regulating crypto globally.
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