Lukashenko Demands Crypto Clarity to Stem Capital Flight

Belarusian President Aleksandr Lukashenko has called for stronger regulation of the cryptocurrency industry, citing growing concerns over investor protection and financial stability. Speaking at a government conference on the development of the digital economy, Lukashenko emphasized the need for updated legal frameworks to govern digital tokens and crypto transactions. The push for tighter regulation follows a state audit that revealed significant issues in how local crypto platforms operate, including irregularities in the registration of financial transactions. The findings highlighted a lack of transparency in the sector and underscored the urgency for regulatory reform.

The audit also noted that approximately half of the funds invested in foreign crypto platforms by Belarusian citizens do not return, a trend Lukashenko described as unacceptable. This outflow of capital raises concerns about the long-term economic impact and the sustainability of the country’s growing digital economy. The president criticized the government for allowing the pace of technological innovation to outstrip legislative action, which, in his view, has left a regulatory vacuum that threatens both public trust and financial security. Despite these concerns, Lukashenko stressed that the goal of the new regulations is not to hinder innovation but to create a balanced framework that supports responsible development and protects stakeholders.

Currently, the cryptocurrency industry in Belarus operates under the Hi-Tech Park, a special economic zone governed by Ordinance No. 8, which provides a foundation for token creation and trading. However, Lukashenko has criticized this system as inadequate in addressing the complexities of the rapidly evolving sector. He has ordered officials to accelerate the development of a new regulatory framework that will bring clarity and accountability to crypto operations. The framework is expected to include stricter oversight mechanisms and clearer rules for market participants, ensuring that financial flows remain within the country and are properly monitored.

The government has yet to announce a formal timeline for the implementation of these regulations, but Lukashenko’s comments indicate that legislative progress is expected in the near future. He has directed officials to finalize the necessary legal documents and ensure that they align with the broader economic objectives of the state. The new regulations are also expected to facilitate the development of a central bank digital currency (CBDC) tied to the Russian ruble, signaling a strategic move to integrate Belarus into the digital financial ecosystem. The CBDC initiative aligns with broader regional efforts to modernize financial infrastructure and enhance cross-border payment capabilities.

While the government works on refining the legal landscape, the crypto sector in Belarus is likely to see increased scrutiny in the coming months. The balance between fostering innovation and ensuring regulatory compliance will be a key challenge for policymakers. Lukashenko has made it clear that the objective is not to suppress the industry but to create a stable and secure environment that supports both domestic and foreign investment. As the regulatory landscape evolves, market participants will be watching closely to see how these changes affect the growth trajectory of Belarus’ digital economy.