Belarus Decree Regulates Blockchain Businesses, Legalizes Smart Contracts

Belarus, a country in the eastern part of Europe, has taken another progressive step to adopt Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term technology, as on 18 June, the country’s President, Alexander Lukashenko, has signed a bill making it the first jurisdiction with a comprehensive regulation of businesses based on blockchain technology.

The bill has also legitimized smart contracts at the state level.

Belarus is one of the few European countries which are betting bullishly on 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. Late last year, its President signed a decree legitimizing transactions in cryptocurrencies which came into effect earlier in March. The primary objective of it was to attract the booming private blockchain businesses to the country. Among other things, the law also exempts new tech companies from certain taxes, allows for increased involvement with foreign banks.

Small country, big plan

However, Belarus is not the only country in the race to accept cryptocurrency as other small European nations like Estonia, Malta, and autonomous jurisdiction like Gibraltar are also attracting cryptocurrency startups by legitimizing the controversial sector.

After legalizing blockchain industry, Malta has seen a recent influx of blockchain startups which was highlighted by the announcement of Binance, one of the largest cryptocurrency exchange in the world, to move its base from Asia to Malta. Binance’s move was followed by other blockchain firms, and the island now hosts two out of five leading crypto exchanges.

Last year, the British overseas territory of Gibraltar has become the first European jurisdiction to introduce legislation recognizing the blockchain companies which came into effect from January 1, 2018.

The potential of the sector is also attracting the attention of major European countries. Earlier this year, French regulators put forth their intention to attract blockchain firms to the country by creating a regulatory framework for ICOs. It was followed by a massive tax cut for cryptocurrencies which reduced the taxes from 45 percent to 19 percent.