Belarus Legalizes Cryptobanks Within Regulated Financial System

Belarus has legalized the operation of cryptobanks under a new framework defined in Presidential Decree No. 19. This legal framework enables financial institutions to offer digital asset services alongside traditional banking functions, including payments and deposits. The move is part of a broader effort to integrate blockchain technology into the national financial infrastructure.

To operate as a cryptobank, institutions must be joint-stock companies registered as residents of the High-Tech Park (HTP) and entered into a special register maintained by the National Bank. These entities are subject to dual oversight by HTP and the National Bank of the Republic of Belarus, ensuring compliance with both financial and technological regulations.

The decree aims to strengthen Belarus's position as a digital finance hub while maintaining state control over crypto activities. By combining traditional banking with token-based operations, the government hopes to foster innovation while minimizing the risks associated with unregulated digital assets.

Why the Move Happened

The introduction of cryptobanks builds on a long-term strategy to regulate digital assets within clearly defined state-approved channels. In September 2025, President Alexander Lukashenko called for the creation of transparent rules for the crypto market and urged local banks to expand their use of crypto-based payments. The new framework reflects this emphasis on controlled innovation.

The government has also taken steps to limit access to foreign crypto exchanges, such as ByBit and OKX, redirecting users to local platforms. This approach ensures that digital asset activity remains under national oversight and aligns with broader economic policies aimed at reducing reliance on the U.S. dollar.

How Markets Responded

The legalization of cryptobanks is expected to attract technology startups and financial institutions looking to offer hybrid financial products. By providing a regulated environment, Belarus aims to encourage the growth of a local digital finance ecosystem while maintaining stability.

Investors and businesses are now able to access crypto services through licensed entities embedded in the financial system. This could lead to increased adoption of digital assets in everyday transactions and expand the country's role as a regional leader in cryptocurrency banking.

What Analysts Are Watching

Analysts are closely monitoring how cryptobanks will operate in practice and whether the dual oversight system will effectively balance innovation with risk management. The government has emphasized the need for financial stability and technological efficiency, but the success of the framework will depend on how well it is implemented.

Regulators are also tracking the impact of the new rules on the broader economy, including their effect on cross-border financial activity and digital asset adoption. As Belarus moves forward, the global market will be watching to see how this model compares to other approaches in different jurisdictions.