Belarus Legalizes Crypto Banks, Establishing Hybrid Financial System

Belarus has legalized crypto banks, marking a significant step in integrating digital assets into its financial system. President Alexander Lukashenko signed Decree No. 19 on January 16, 2026, creating a legal framework for crypto banks to operate. This framework allows joint-stock companies in the High-Tech Park to combine traditional banking with digital token operations.

The decree defines crypto banks as entities authorized to provide services for both cryptocurrencies and conventional financial instruments. To operate, institutions must hold resident status within the High-Tech Park and be registered in the National Bank's crypto bank registry. These banks will function under the dual supervision of HTP authorities and the National Bank.

The move is part of Belarus's broader strategy to promote financial innovation and position itself as a regional hub for digital finance. Authorities aim to attract blockchain businesses and investors while ensuring regulatory oversight.

Why Did This Happen?

Belarus has long sought to position itself as a digital finance leader. In 2017, the country introduced crypto-friendly policies, including tax exemptions for residents of the High-Tech Park. The latest decree builds on these efforts by formalizing crypto banking services. Authorities aim to create a controlled environment that encourages innovation without exposing the country to the risks of an unregulated crypto market.

The decision reflects a growing trend of nations integrating digital assets into traditional financial systems. More than half of major banks globally are investing in digital assets, and tokenization is gaining traction. Belarus's approach emphasizes state oversight and institutional participation, distinguishing it from more libertarian crypto-friendly jurisdictions.

How Did Markets React?

Markets responded positively to the news. Bitcoin's price rose to approximately $95,000 shortly after the announcement, signaling optimism about the regulatory clarity. Social media reactions highlighted Belarus's move as a significant development, with many users celebrating the country's forward-thinking approach.

The decree also coincided with a broader shift in how governments approach crypto. Several countries, including France and Austria, are reevaluating how to regulate major crypto firms under EU MiCA rules. Belarus's decision positions it as a potential leader in the regulatory space.

What Are Analysts Watching Next?

Analysts are watching how the regulatory framework will evolve over the next six months, as officials finalize the necessary adaptations to the legal system. The first crypto banks could emerge as early as mid-2026, according to Alexander Yegorov, First Deputy Chairman of the National Bank.

Regulators are also monitoring the impact of the dual oversight system. By combining financial and technological supervision, Belarus aims to ensure both innovation and stability. This approach may serve as a model for other countries seeking to integrate crypto without compromising regulatory control.

The success of the framework will depend on its ability to attract investment and maintain compliance with international standards. Belarus must balance its ambition to become a digital finance hub with the need for financial stability and transparency.