Blockchain technology has changed the way we view transactions. What the technology offered is the ability to transact without the third parties involved. However, despite the high that the crypto market experienced in 2017, the entire crypto market is not looking good. And there are many factors for this situation.
After Google, Facebook, and Twitter decided to ban advertisements on anything crypto-related, the price of cryptocurrencies is struggling. In addition to this, countries are regulating the cryptocurrencies and ICOs to prevent a Wild West scenario that could endanger investors.
However, there are countries that have a different approach when it comes to handling cryptocurrencies. There’s Venezuela that has created its own cryptocurrency backed by oil. And recently, you have Belarus that has provided a crypto-friendly atmosphere within the country. A presidential decree that is entitled “On the Development of the Digital Economy” was released on March 28 that has officially legalized crypto-related activities in the country.
The legitimacy for the crypto market is a way to attract cryptocurrencies and blockchain technology-related businesses. This Eastern European country has been known for pushing policies that can help the crypto market. According to the president, what he wants is to implement market socialism. His goal is to also protect businesses against crypto regulations
In December 2017, President Alexander Lukashenko signed the Decree N°8 that eventually became decree that was enacted on March 28th.
What exactly does the decree say? This decree legalizes crypto business activities including exchange services, ICOs, and even crypto mining operations. It also doesn’t impose any restrictions regarding the storing or issuing of digital tokens.
This decree could potentially get more investors especially in the next years to come. The decree includes tax reductions as well as exemptions for crypto-market businesses for the next five years. The tax break and other incentives are effective until January 1, 2023.
Also, those companies that issue digital tokens or involved in crypto mining will be exempted from taxes. And it doesn’t actually end there. Even companies that are based abroad will not be taxed by the Eastern European country.
Aside from tax and other benefits, this decree will also reduce bureaucracy when it comes to setting up a crypto-related business in the country. Investors in the Hi-Tech Park will also not have to apply for any work permits. There will also be a special visa for workers at the High Technology Park.
2017 was truly a remarkable year for the crypto world. However, it also comes with a few problems along the way. For instance, volatility has threatened capital outflow from major economies including China. In addition to this, there are also those ICOs that are actually a scam. It is also true that prior to regulations, illicit activities made use of the crypto world in order to And because of this, regulators tightened regulations regarding the crypto market. Could this move by Belarus something that other countries will actually follow? Or is it just an out of the box idea that will not be followed by other countries?
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