Belarus Adopts Legal Procedure for Seizure of Illicit Cryptocurrency – Belarus’ government has implemented a system that allows the state to seize digital currency holdings, thanks to a recently issued presidential decree. Law enforcement authorities in Minsk will be able to take crypto assets linked to illicit acts as a result of the measure.
According to an announcement made by the Belarusian Ministry of Justice, a legal mechanism for the seizure of cryptocurrency assets as part of enforcement procedures has been established, according to the crypto news outlet Forklog.
The bill intends to put President Alexander Lukashenko’s proclamation on the country’s crypto space into effect. It was signed by Belarusian President Alexander Lukashenko in February and calls for the formation of a separate register for crypto wallet addresses used for illegal purposes.
The seized or forfeited crypto assets will be accounted for by the authorities handling the criminal proceedings, according to the justice ministry. Its paper, dated April 14, also addresses the seizure and valuation of digital assets as part of debtors’ property confiscations.
The Minsk government had 3 months to take the required steps to put Lukashenko’s latest crypto-related decree into action, after which it would take full effect.
Belarus legalized a number of crypto-related activities with a presidential decree signed in late 2017 and put into effect in May the following year. In an effort to strengthen the country’s digital economy, it granted tax cuts and other incentives for crypto companies operating as residents of the Hi-Tech Park (HTP) in Minsk.
The former Soviet republic, which is a close Russian ally, prohibits the usage of cryptocurrency in payment transactions. Nonetheless, according to the Crypto Adoption Index developed by blockchain analytics firm Chainalysis, Belarus ranks third in the area in terms of crypto adoption, owing largely to robust peer-to-peer activity.
Lukashenko hinted at a probable tightening of the country’s crypto restrictions in March of last year, referring to China’s policy. HTP officials later stressed that the Belarusian government had no plans to impose stricter regulations on the business. Furthermore, the Ministry of Finance suggested revisions in February of this year that will enable investment funds to own digital assets.