The Belarusian Ministry of Foreign Affairs is contemplating the implementation of legal amendments that would ban peer-to-peer (P2P) transactions involving cryptocurrencies like Bitcoin (BTC).
In an official announcement on Telegram, the ministry cited a significant increase in cybercrime in Belarus, resulting in the suppression of illegal crypto exchange services provided by 27 individuals since January 2023. The total illicit revenue generated amounted to nearly 22 million Belarusian rubles ($8.7 million).
The ministry argues that P2P crypto services have become popular among fraudsters involved in cashing out and converting stolen funds, facilitating the transfer of money to organizers or participants in criminal schemes.
To combat such illicit activities, the ministry plans to restrict P2P transactions for individuals, permitting cryptocurrency exchanges registered with Belarus Hi-Tech Park (HTP) as the only authorized platforms for crypto exchange. The ministry further emphasized that citizens will be required to conduct financial transactions solely through HTP exchanges to ensure transparency and control.
Additionally, the ministry intends to implement a procedure similar to the exchange of foreign currencies, which would make it impossible to withdraw funds obtained through illegal activities. By adopting these measures, Belarus aims to create an unfavorable environment for information technology fraudsters, thus discouraging their operations in the country.
However, the proposed ban on P2P cryptocurrency trading has sparked skepticism within the crypto community. Many enthusiasts question the government’s ability to effectively enforce such a ban. One crypto observer expressed doubt on Twitter, stating, “Good luck enforcing it.” Critics argue that banning P2P transactions contradicts the original concept of Bitcoin, as outlined in Satoshi Nakamoto’s white paper.
The recent developments in Belarus seem contradictory to the country’s previous stance on cryptocurrencies. In 2022, Belarusian President Alexander Lukashenko signed a decree endorsing the free circulation of cryptocurrencies, including Bitcoin, within the nation.
As discussions continue regarding the proposed ban, the crypto community eagerly awaits further updates on the Belarusian government’s stance on P2P cryptocurrency transactions.
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