Belarus Establishes Legal Framework for ‘Cryptobanks’ Under New Presidential Decree

Belarus has formally introduced a legal framework for so-called “cryptobanks,” integrating digital asset operations into the country’s regulated financial system under direct state oversight.On Friday, President Alexander Lukashenko signed Decree No. 19, which sets out how cryptobanks may operate and the regulatory conditions required for market entry.What the Cryptobank Decree AllowsUnder the new rules, cryptobanks are defined as joint-stock companies permitted to combine:Token-based operationsTraditional banking servicesPayment processing and related financial servicesRather than creating a separate crypto sector, the decree embeds digital asset activity within Belarus’s existing financial supervision framework.To operate legally, cryptobanks must:Obtain resident status in Belarus’s Hi-Tech Park, a state-backed innovation hubBe registered in a dedicated cryptobank registry maintained by the National Bank of the Republic of BelarusDual Oversight ModelCryptobanks will be subject to dual regulation:Financial oversight under rules governing non-bank credit and financial institutionsTechnological and operational oversight by the Hi-Tech Park’s supervisory boardAccording to the government, this layered approach is designed to allow innovation while maintaining tight regulatory control. Cryptobanks will be able to offer hybrid products that blend conventional banking with token-based transaction efficiencies, but only through licensed, state-approved entities.Part of Belarus’s Controlled Crypto StrategyThe decree builds on Belarus’s gradual and highly managed approach to crypto adoption. In September 2025, Lukashenko called for “clear and transparent rules” for the crypto market, stressing the need for innovation paired with strong state control. He also urged domestic banks to explore crypto-based payments amid rising sanctions pressure and increased use of digital assets in cross-border transactions.At the same time, authorities have continued to clamp down on unregulated activity. In December 2025, Belarus blocked access to several offshore crypto exchanges, citing advertising violations and signaling a broader effort to eliminate the crypto gray market.Big PictureWith Decree No. 19, Belarus is positioning itself as a state-controlled crypto and financial IT hub, allowing digital assets to operate only within clearly defined legal and institutional boundaries. The move underscores a model where crypto innovation is permitted—but strictly under centralized oversight and existing financial infrastructure.