Belarus Creates Legal Framework for Bitcoin and Crypto Banks in New Decree

Belarus President Alexander Lukashenko signed a decree on January 16, 2026, establishing a legal framework for 'cryptobanks'. The decree permits companies operating within the country’s High-Tech Park (HTP) to offer traditional banking services alongside operations involving digital tokens. This move positions Belarus among jurisdictions actively integrating digital assets into financial systems.

The new regulation defines a cryptobank as a joint-stock company that is a resident of the HTP and is included in a register maintained by the National Bank of Belarus. These institutions can provide services like deposits, loans, and transfers, as well as digital token operations.

The framework is designed to allow a hybrid model that combines the technological efficiency of blockchain with the stability of traditional banking.

Dual regulation is a key feature of the new framework. Crypto banks will operate under the oversight of both the National Bank of Belarus and the HTP Supervisory Board. This dual regulatory approach aims to ensure compliance with existing financial regulations while supporting innovation in digital finance.

Why Did This Happen?

The decree follows a broader push by Belarus to integrate digital finance into the national economy. Last year, Lukashenko directed the government to develop the country's crypto-mining sector, leveraging surplus energy resources. This strategy aims to reduce global dollar dependency and expand the use of digital assets in economic transactions.

The move is also part of an ongoing effort to consolidate digital asset activity within state-vetted domestic entities. In December, Belarus reportedly blocked access to several international cryptocurrency exchanges, including Bybit, BingX, and OKX, citing compliance with the Law on Mass Media. This indicates a shift toward a more controlled and regulated environment for crypto transactions.

How Did Markets Respond?

Market participants have interpreted the new decree as a sign of increasing institutional adoption of digital assets. The framework creates a regulated pathway for crypto banking, which could attract blockchain-focused companies and investors. Some analysts suggest that the move could also increase competition among governments in Eastern Europe to offer favorable conditions for digital finance.

Bitcoin prices rose to around $95,000 in the days following the announcement, reflecting a bullish market reaction. Social media users have celebrated Belarus's move as a forward-thinking approach to crypto integration, with some highlighting the potential for local blockchain businesses to benefit.

What Are Analysts Watching Next?

Analysts are closely observing how the new regulatory framework will attract foreign capital and whether it will position Belarus as a regional hub for digital finance. The decree narrows participation to firms willing to operate within specific parameters, ensuring that integration of digital assets occurs in a controlled and supervised manner.

Some analysts argue that the move is less about Bitcoin adoption and more about maintaining state control over capital flows. By legalizing crypto banks while blocking foreign exchanges, the government can channel all activity through domestic institutions. The real test will be whether this framework attracts international investors or simply confines domestic liquidity within regulated walls.

The decree also reflects a broader global trend. For example, Belgium's KBC Group has announced plans to allow retail clients to trade crypto under EU regulations. This suggests that more traditional financial institutions are exploring ways to integrate digital assets into their services.

Conclusion

Belarus's new regulatory framework for cryptobanks represents a significant shift in how the country approaches digital assets. By allowing financial institutions to offer crypto services alongside traditional banking, the country is modernizing its financial system. The framework ensures that the integration of digital assets happens in a controlled and supervised manner, balancing innovation with regulatory oversight.