Belarus is planning to ban cryptocurrency exchange transactions between individuals due to an increase in crime. The country is also planning to implement procedures such as those applicable to foreign currencies which make it impossible to withdraw money received from illegal activities.

According to an announcement by the Belarusian Ministry of Foreign Affairs, local authorities have intercepted almost 30 fraudulent activities involving illegal crypto exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term services since the start of the year. The value of the transactions is reportedly about 22 million Belarusian rubles ($8 million).

Rising Demand among Fraudsters

Commenting via Telegram, Alexander Ringevich, the Head of the Main Directorate at the Belarusian Ministry of Internal Affairs, said in a statement translated from the Belarussian: "Such services are in demand among fraudsters who cash out and convert stolen funds, transfer money to organizers or to the participants of criminal schemes."

However, the Eastern European country will continue to permit cryptocurrency transactions exchanged through the platforms registered with the Belarus Hi-tech Park (HTP), a tax and legal regime for businesses conducting IT business in the country. Such an arrangement, according to the regulator, would enhance transparency in the digital asset sector.

"In such conditions, it will simply become unprofitable for information technology fraudsters to operate in Belarus," Ringevich added. "For the sake of transparency and control, citizens will be allowed to conduct such financial transactions only through the HTP exchanges."

The rise in financial scams, especially those related to cryptocurrencies, was recently corroborated by the UK's Financial Ombudsman Service (FOS) in a report by Finance Magnates. The FOS said there was an increase in the reported cases involving more than one scam.

Belarus Changes Tune

The latest development contradicts Belarus' past stance on the adoption of cryptocurrency. Last year, the country's President, Alexander Lukashenko, signed a decree to support the free circulation of cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term. The law provided a legal framework for the HTP to prevent using cryptocurrencies for illegal activities.

Additionally, in further support of cryptocurrencies, including digital asset trading and mining, in 2021, President Lukashenko called for crypto mining using the extra power resources in the country. Previously Lukashenko proposed the use of extra nuclear power energy to mine and sell cryptocurrencies in Belarus.