Bitcoin in Belarus. Buying and selling bitcoins for Belarusian rubles. What can you buy for Bitcoins in Belarus?

What is Bitcoin?

The most popular and well-known cryptocurrency is Bitcoin. Cryptocurrency is a type of digital currency. The term cryptocurrency has been assigned to Bitcoin in 2011 after the publication of an article about Bitcoin in Forbes magazine. This system is decentralized, and currency is issued through mining and forging. The most common method is the so-called Bitcoin mining. The procedure is that Bitcoin is mined using the available computing power of your computer. That is why they are now buying up quite powerful video cards for computers in order to thereby mine cryptocurrency, including Bitcoin.

Bitcoin and legislation

At the moment, the concept of cryptocurrency (digital currency) is not in the legislation. Back in early 2014, the Deputy Chairman of the Board of the National Bank of Belarus said that Bitcoin has no legal basis for its use in the territory of the Republic of Belarus. The government warns that the use of cryptocurrency carries increased risks for individuals using this digital currency. Previously, the Ministry of Internal Affairs recommended refraining from transactions with bitcoins for both individuals and legal entities. The main thing that confuses the authorities is the lack of regulation at the legislative level in this area.

Why is Bitcoin not covered by our legislation?

Our legal experts are faced with a problem: how best to identify Bitcoin. If you look at our legislation, then legally there is no definition that covers the concept of cryptocurrency, which means that Bitcoin cannot be defined. Article 141 of the Civil Code defines what money is. money means the Belarusian ruble, which is legal tender, and foreign currency. Next, let us turn to the concept of foreign currency. In accordance with paragraph 4 of Article 1 of the Law “On Currency Regulation and Currency Control,” foreign currency means banknotes in the form of banknotes, treasury notes, coins, as well as funds in bank accounts in foreign currency units. It turns out that cryptocurrency does not fall under these concepts given in the legislation.

Exists similarity cryptocurrency and electronic money:

• The very fact of existence on the Internet
• Electronic money must be denominated in Belarusian rubles or foreign currency
• Possibility to pay for goods (services).

Main difference electronic money from cryptocurrency-el. money is issued by a bank accredited in the country, in accordance with the legislation of the Republic of Belarus, but cryptocurrency is not

Is it possible to use cryptocurrency as a means of payment?

In general, yes, it is possible, but there are a number of peculiarities. It is necessary to introduce the concept of cryptocurrency at the legislative level. Then establish the legal status. People will gradually get used to this type of payment means. The peculiarity is that there is no body in the country that is the issuer of this currency or somehow controls it. In addition, as we know, Bitcoin grows (falls) at incredible rates compared to any currency or security. For example, in some countries of the European Union, Bitcoin and other cryptocurrencies are already used as a means of payment. China has introduced a ban on the use of legal bitcoins in circulation. persons, but individuals do not have this prohibition.

Taxes and cryptocurrency in the Republic of Belarus

Since this currency does not relate to cash and does not exist in kind, in accordance with the legislation of the Republic of Belarus, the issue of cryptocurrency and transactions with it (crediting to one’s e-wallet) are not subject to taxation. This is because only income is subject to income tax. It is known from civil norms that income is an economic benefit expressed in cash or in kind. It turns out that when you mine Bitcoin you do not fall within the legal framework. It follows that income tax will be subject to income tax when you exchange Bitcoin for money or property.

The future of cryptocurrency in Belarus

Hooray! It's finished!

It became known that the draft decree “On the development of the digital economy” signed by the President of the Republic of Belarus.

This decree allows a lot to be done with cryptocurrencies: individuals are allowed to own, mine (mine), buy, sell, exchange for Belarusian rubles and foreign currency. It is also possible to give and bequeath digital currency. There is even an exchange for electronic money. Here the state provides ample opportunities for the development of cryptocurrency, which is good news.

Very important information!

In accordance with the decree, all transactions with cryptocurrency they won't be taxed! At least until January 1, 2023 it will be this way.

The above means that soon it will be possible to pay with bitcoins everywhere and the list of organizations will be replenished. However, there are already a couple of such organizations that accept cryptocurrency as a means of payment. One of the first to start accepting it was the TYREPLUS network of tire service centers.

Now many cryptocurrency owners have a question: How to cash out bitcoins" and where to do it in Russia, Belarus, Ukraine in 2020. We will describe working and real methods in this review.

Bitcoin (BTC) is gradually entering everyday life. With its help, you can already pay in online stores, make a quick transfer to another person anywhere in the world, etc. Many countries have begun to think about giving cryptocurrencies the status of a means of payment and regulating them. For example, Japan officially recognized Bitcoin as a means of payment in April 2017, which became the main driver of the sharp growth.

But let’s return to the question of how to cash out bitcoins into rubles, dollars, hryvnia in 2020. You can do this:

In Russia and Ukraine, at the moment, virtual currency is treated with caution or not noticed at all. Just going to the bank and exchanging will not work. To cash out Bitcoin into real money, you need to resort to the help of exchangers, exchanges and various payment systems. The status of cryptocurrencies has not been officially defined.

Bitcoin in November 2017 came close to $9,000 per 1 BTC. Will its value continue to rise? As long as there are people willing to buy it, the rate will rise. Government regulatory approvals for cryptocurrencies could provide a huge boost.

The advantages of this method: all operations are completed quickly, there are many payment systems available.

Choose an exchanger for cashing out bitcoins based on the reputation and comments left by those who have already used their services. This is the main parameter when choosing. Next, look at the proposed conversion directions, the availability of the required reserve and the exchange rate.

Instructions for cashing out Bitcoin through an exchange office:

• Register on the site. This is not necessary, but you can get an increasing discount on your exchange. Each exchanger has its own conditions.
• We choose a direction, for example Bitcoin and a Sberbank card.
• Enter the amount: it is recommended to start by converting small amounts, just for testing.
• We indicate the remaining data (card number, etc.).
• We transfer Bitcoin to the address of the exchange office. We are waiting for confirmation from the network (when transferring, you can set a higher commission to speed up confirmation).
• After receiving bitcoins, the exchanger transfers money from its bank account to your card.

If you have any questions, please contact support - it works online on every serious website

Instructions:

• Register on advcash.com.
• Select "Top up your account".
• Enter the amount and select the desired wallet (USD, EUR, RUB, UAH, KZT).
• Next to the word Bitcoin, click “Top up”.

Carefully follow the further instructions from Advcash and top up exactly the amount indicated by transferring bitcoins to the address within 15 minutes. If you have not invested at this time, you need to re-create the transaction.

After enrollment, withdraw money to the card from Advcash:

Or to any other bank card:

Also in Ukraine and Russia, you can transfer funds into cash through the company’s partners, after contacting them first.

This method of anonymously cashing out bitcoins into rubles, dollars, hryvnias and other currencies is fully functional.

Transfer Bitcoin to cash through exchanges

The third way is to cash out bitcoin using cryptocurrency exchanges, where users from different countries make purchases or sales of virtual coins. Can be exchanged for other cryptocurrencies.

There are many exchanges, let’s consider the one that works with Russian rubles, Ukrainian hryvnia, dollars, euros - exmo.me.

Action algorithm:

• Opening a wallet on the exmo.me website.
• Replenishment (transfer to the BTC exchange from your Bitcoin wallet).
• Conversion into fiat currencies: rubles, hryvnia, dollars, euros.
• Withdrawal money in an accessible way.

Available withdrawal methods from a ruble account: WebMoney, Master Card and Visa cards, Qiwi, YandexMoney, Advcash:

From an account in hryvnia to Ukrainian cards and Advcash:

To purchase bitcoin in Belarus, you will need to leave a request on the main page of the site.
Creating an application

The application must include the following information.

When paying online, all payment information will be provided automatically in the application you create. For a cash transaction, we will contact you using the contact information you left to discuss the details of the transaction.

We accept applications from 10-20 Minsk time.

2. Ways to buy Bitcoin and other cryptocurrencies in Belarus

Let's talk about each method in more detail.

1. Buying Bitcoin with cash

This method is the most popular and convenient for residents of large cities. All you need to do is submit an application in advance and agree on the date, time and location of the transaction.
Our courier will arrive at the appointed place and top up your Bitcoin account in front of you.

2. Bank payment

We accept bank payments from all CIS and EU countries. To purchase Btcoin through a bank, you will need to transfer funds to our account. After submitting an application for purchase, we will notify you of the amount and details for the transfer. The agreed terms are valid for 24 hours from the moment of their approval. That is, if you submitted an application to purchase 1 BTC today at 12:00, you must pay for the order no later than 12:00 the next day. Otherwise, the payment may be rejected by us upon receipt. Once you have made the payment, you can provide a photo/printout of the funds transfer receipt. From now on, we reserve funds for you. As soon as your transfer is credited to our account, we will transfer the funds to the account you specified.
*Bank transfer fee is paid by the client

3. ERIP

The ERIP payment system is very popular in Belarus and we could not help but include it in the list of possible payment methods. If you have an online bank or kiosk nearby, this is an ideal way to purchase cryptocurrency. Our website has detailed instructions on how to purchase Bitcoin through ERIP

For clients with bank accounts in European Union countries, there is the opportunity to purchase cryptocurrencies for EUR transfer through the SEPA payment system. This payment is a regular bank transfer and is completely similar to the purchase process from a bank payment via SWIFT, described in paragraph 2. The key difference is the speed of transactions and the low cost of this operation.

5. Visa/MasterCard

To pay through the Visa and Mastercard systems, you can use your online bank, ERIP, or online services and TUT.by When working with cards, you will need to undergo simple identification due to the increased risks of such operations.

3. Bitcoin deposit

And so, you have paid for the application and we are ready to transfer you bitcoins.

First, you create a wallet in Bitcoin and tell us its address. Wallet address example 32GWgJsnKwdS7tphdeKbkfFQgShnHNAtqz
If you are not familiar with the Bitcoin system and plan to use these funds as a user with the function of receiving and sending, then the best option is to open an account in the Blockchain.info system. This method will not require specific knowledge from you, and will also allow you to use the system as a PC and smartphone. Your wallet will always be with you. If the account has already been created, you give us the wallet address and we replenish it with the agreed amount. If the Bitcoin network is busy (lots of transactions taking place), then confirmation of the funds transfer chain may take several hours. Often the transfer is confirmed within an hour. You see the translation itself immediately after it is sent. If you have any questions, we will be happy to help you figure it out.

The decree is certainly a positive example of state regulation of new technologies. Belarus has taken a big step towards the development of the industry. Moreover, the document is aimed at organically integrating the country into the economy of the future.

I would like to note that the adoption of the decree is the result of the work of a number of government bodies, which means their full understanding of current economic processes and phenomena.

The heart of the digital economy should be the High Technology Park represented by its residents, and its circulatory system should be companies and individuals, both residents and non-residents of Belarus.

However, at the moment, non-residents of the park are expected to participate in conjunction with a resident partner.

What does the decree say about tokens and cryptocurrencies?

Let's look at seven key features of the decree related to the circulation of tokens and cryptocurrencies.

1.

The decree itself is aimed at creating favorable conditions for the introduction of blockchain technology into the Belarusian economy, based on the principles of decentralization, publicity and security of transactions carried out using it.

2. New residents of the Hi-Tech Park

The following types of activities related to the circulation of tokens and cryptocurrencies are permitted for park residents:

• Providing services related to the creation and placement of tokens, including services for their promotion.
• Activities of crypto exchanges.
• Activities of crypto exchangers.
• Mining.
• Activities using tokens containing characteristics of an exchange.
• Activities of the investment fund.
• Securitization.
• Carrying out operations to create and place your own tokens.
• Other activities using tokens.

There are special requirements for operating as a crypto platform operator and cryptocurrency exchange operator. It is necessary to ensure the availability of funds in bank accounts in Belarus in the following amount:

• At least 1 million BYN (about 500 thousand USD) – for the operator of the crypto platform.
• At least 200 thousand BYN (about 10 thousand USD) – for a cryptocurrency exchange operator.

Thus, the state intends to ensure compliance with the financial obligations of these entities to their clients.

3. Other subjects

According to the decree, individuals and legal entities, including non-residents, have the right to own tokens and perform the following operations with them:

4. Token and its characteristics

The term “digital sign (token)” used in the text of the decree also includes cryptocurrencies. The key difference between a token and a cryptocurrency is that cryptocurrency is in mass circulation as a means of payment.

From a tax point of view, the alienation of tokens is considered as the exercise of property rights. The token is not subject to inclusion in tax returns. It is not a security as defined by Belarusian law.

Tokens also do not constitute funds, securities, electronic money or other property, including property rights, as well as exclusive rights to the results of intellectual activity.

5. Token turnover

Currency legislation does not apply to residents of Belarus when they conduct permitted types of transactions with tokens.

The transfer of rights certified by a token is confirmed by the transfer of a token from one entity to another. The transfer of a token is considered completed at the moment the confirmed operation is reflected in the blockchain.

6. Smart contracts

Within the framework of the Hi-Tech Park, a legal experiment is being carried out with the provision of its residents the right to make and/or execute transactions through smart contracts.

7. Taxes

Until January 1, 2023, the following are not recognized as objects of taxation:

• Turnovers on the alienation of tokens, including by foreign organizations.
• Profit from exchanging tokens for other tokens.
• Revenue from the exchange of tokens for other tokens.
• Income of individuals from carrying out permitted transactions with tokens.

I would like to note that, as before, legal entities and individual entrepreneurs of Belarus will be able to become residents of the park, subject to the provision of a business project that will be implemented by the entity as a resident.

In connection with the adoption of the decree, the number of residents of the park, in addition to the above companies whose activities are related to the circulation of tokens, will be able to be replenished by companies operating in the following areas:

• Fintech
• Training neural networks
• Drone development
• Biotechnology
• Development of solutions for aviation and space

As part of the legal experiment being carried out in the park, it is planned to introduce some institutions known to English law. For example, convertible loan agreements, agreements on granting an option to enter into a contract and an option agreement, agreements on compensation for property losses.

The adopted regulation represents a win-win strategy for economic development. It can be an excellent reason for various eminent companies and businesses to settle in Belarus for a long time and seriously.

And for those who are just thinking about starting a company, this is a reason to choose this country as a suitable jurisdiction for a successful start.

Investor's opinion

Alexander Chekan, venture partner of the Haxus fund

The main provisions of the decree were widely discussed both in the IT community and in government agencies - the National Bank, the Ministry of Taxes and Duties, the government and law enforcement agencies.

On December 11, at a meeting with representatives of the IT sector, which was attended by about 20 people, the president carefully listened to their position regarding the already prepared decree, asked questions and, in the end, promised to sign it “before the big meeting” (December 22 there was a meeting with entrepreneurs ).

The main motive for adopting the decree is to enable international projects to operate legally in a clear legal framework, attracting investment to Belarus.

In the country’s economy, experiments with blockchain technologies are being implemented by the National Bank, and the currency and stock exchange is preparing for implementation. At the moment, no country in the world has adopted comprehensive regulation for all elements of the crypto-economy, yet the market is booming and there is a clear demand for transparent legislation.

In my opinion, after the decree comes into force, there will be more domestic startups, transactions will be structured within Belarus, and therefore their execution will become cheaper. Also, more corporations will set up R&D offices in the country, and startups and funds will come from other countries that need clear jurisdiction for blockchain projects.

I have no serious concerns about the state of the startup ecosystem in Belarus after the decree comes into force, because in the worst case, the market for blockchain projects will collapse.

But the decree provides “buns” not only for them, but also for three dozen other types of activities, including medical technologies, IT education, e-sports, biotech, advertising technologies and others.

As for the danger of scams in ICOs, here, firstly, the ICO market itself is becoming somewhat more stable, and, secondly, when projects receive benefits and join the Hi-Tech Park, they undergo a KYC procedure, which may include technical expertise in the case any doubts.

For exchanges and exchangers, there are requirements for account balances, although they are quite modest: 0.5 and 0.1 million dollars, respectively.

At the end of March, Decree No. 8 “On the development of the digital economy,” which is also called the “Decree on HTP 2.0,” came into force. It reveals issues related to the legalization of the work of Belarusian residents with cryptocurrencies. The document stipulates all the points that in one way or another relate to “virtual money”. It is assumed that individuals received especially comfortable conditions: tokens can be alienated, purchased and exchanged without any taxes on these transactions through exchanges and exchange operators.

However, what is absolutely clear to the drafters of the law may raise questions among people who are not legally savvy. Moreover, the topic is still new and pressing for the country.

And on the Onliner.by forum, users are discussing how the Decree will affect cryptocurrency holders and miners in practice. We sent a request to the Ministry of Taxes and Duties of the Republic of Belarus with a request to clarify unclear points. For this purpose, an example was given with a hypothetical Belarusian who owns a certain amount of crypto money. We briefly retell it below.

A Belarusian individual mined 100 units of fictitious cryptocurrency on his computer. These units were then exchanged through an exchange outside Belarus for real money and transferred to a Belarusian bank card. The total amount was 200 thousand Belarusian rubles.

The official salary of this Belarusian is 1000 rubles per month. Having received 200 thousand rubles from a cryptocurrency exchange, he buys an apartment. As a result, expenses significantly exceed income, and he may be called to the tax office. Here he must provide documents.

What kind of documents are these and should a Belarusian, in principle, provide anything?

Below we publish in full the response that the department provided us.

The Ministry of Taxes and Duties of the Republic of Belarus, within its competence, reports the following.

Paragraph three of subclause 3.1 of clause 3 of the Decree of the President of the Republic of Belarus dated December 21, 2017 No. 8 “On the development of the digital economy” (hereinafter referred to as the Decree), which entered into force on March 28, 2018, establishes that the income of individuals is not recognized as objects of taxation for personal income tax persons from mining activities, acquisition (including as a gift), alienation of digital signs (tokens) (hereinafter referred to as tokens) for Belarusian rubles, foreign currency, electronic money and (or) exchange for other tokens.

At the same time, in accordance with the Law of the Republic of Belarus of January 4, 2003 “On the declaration of income and property by individuals at the request of tax authorities,” the tax authorities are responsible for monitoring the compliance of income and expenses of individuals.

Moreover, such control is carried out on the basis of the information specified by the individual in the declaration of income and property, and information available to the tax authority.

If during such control it is established that the expenses of an individual exceed his income indicated in the declaration of income and property, or the fact of receipt of income is not confirmed, then the individual is obliged, at the request of the tax authority, to provide explanations about the sources of income, which must contain information about the source of income (last name, first name, patronymic (if any) of an individual, place of residence (if information about the place of residence is available), name of the legal entity, location), about the amount and date (period) of receipt of income, and also, if available, other information about the source of income.

Additionally, please note that according to subclause 2.2 of clause 2 of the Decree, it is tokens that are not subject to declaration, and not income from mining, acquisition, or alienation of tokens carried out by individuals independently without the involvement of other individuals under employment and (or) civil law contracts.