Cryptocurrencies are becoming increasingly popular in the modern world, and many countries strive to create favourable conditions for developing this area. One of these countries is Belarus, where activities with cryptocurrencies are growing. In particular, this concerns the process of registering crypto exchanges. In this article, we will consider the main aspects of registering a crypto exchange in the Republic of Belarus: requirements for market participants, the registration procedure, the necessary documents and the terms of their consideration. This article will be helpful for anyone interested in the development of cryptocurrencies and who wants to learn more about the process of registering a crypto exchange in one of the CIS countries. We hope it will help you better understand the specifics of regulating this area in Belarus and make an informed decision about registering a crypto exchange.
Why is it Important for Crypto Market Participants to Understand the Specifics of Registering Crypto Exchange in Belarus
Registration of a crypto exchange in Belarus may be important for crypto market participants for several reasons:
1. Legislative Regulation
In Belarus, state requirements apply to companies operating in the field of cryptocurrencies and blockchain technologies. Understanding the specifics of registering a crypto exchange will help market participants comply with legal requirements and avoid potential legal problems.
2. Legality of Transactions
Registering a crypto exchange can ensure the legality and transparency of cryptocurrency transactions. It is important to protect the interests of market participants and prevent possible financial risks.
3. Access to the Market
Registering a crypto exchange in Belarus will allow you to gain access to the Belarusian cryptocurrency market, opening up new opportunities for trading and investment.
4. Consumer Protection
A registered crypto exchange must comply with specific standards and rules to protect consumer rights. It ensures users’ safety and transaction reliability
5. Cooperation with Regulators
Registered crypto exchanges can cooperate with government agencies and regulators, which contributes to the development of the market and increases its transparency.
6. Tax Reporting
Market participants must comply with tax obligations. Registering a crypto exchange allows you to keep records and provide reports by the law.
7. Infrastructure Development
Registration of a crypto exchange contributes to the development of infrastructure for working with cryptocurrencies in the country, creating favourable conditions for further market development.
In general, understanding the specifics of registering crypto exchanges in Belarus helps crypto market participants navigate the legislation, comply with regulatory requirements and ensure the security of transactions. It contributes to the development and stability of the country’s cryptocurrency market.
Which Companies can Become Crypto Exchanges
Crypto exchanges in Belarus include crypto platform operators. These are companies that:
1. Registered in Belarus
2. Residents of the High-Tech Park
3. Provide an opportunity to make transactions with cryptocurrencies to individuals and companies between themselves and with the crypto exchange using the information system.
To Become a Crypto Exchange, a Company must:
- Be registered with the state as a legal entity in Belarus.
- Become a resident of the High-Tech Park by decision of the Supervisory Board of the High-Tech Park.
- Ensure that at least 1 million Belarusian rubles are in a bank account in a Belarusian bank (this is approximately 276,780 euros).
Transactions that can be Made on the Crypto Exchange:
- Sale and purchase of digital signs (tokens) (tokens are the general name for cryptocurrencies) for Belarusian rubles, foreign currency, and electronic money.
- Exchange of cryptocurrencies of one type for cryptocurrencies of another kind.
- Other transactions by state requirements.
Let us remind you that companies can transact with cryptocurrencies in Belarus only through residents of the High-Tech Park — crypto exchanges registered in Belarus.
Features of Registering a Company as a Crypto Exchange
A number of requirements have been established for crypto exchanges. If a crypto exchange does not meet the criteria, it will lose its status as a crypto exchange and the status of a resident of the High-Tech Park. Let’s consider the requirements that a company must meet to register in the High-Tech Park as a crypto exchange:
1. Features of the Business Project
In the business project, which is necessary for registering a company as a resident of the High-Tech Park, indicate the type of activity – “activities of the crypto platform operator”. Usually, crypto exchanges also indicate the activity that provides services related to the creation and placement of cryptocurrencies using the Internet, including services for promoting cryptocurrencies, consulting and other related services. You can specify the type of activity that provides for the creation and placement of your cryptocurrencies.
2. Security Amount of Money in a Bank Account and Authorized Capital
A company that wants to become a crypto exchange must ensure that it has at least 1 million Belarusian rubles (approximately 276,780 euros) in a bank account in a Belarusian bank.
The authorized capital of a company that wants to operate a crypto exchange is 2 million Belarusian rubles (approximately 551,000 euros). The authorized capital must be fully formed at the time of registration as a resident of the High-Tech Park.
3. Business Experience
A company can become a crypto exchange when the manager, owner or founder of more than 10% of shares, the beneficial owner has at least one year of experience (including through the founding of a company) or management of a company in the financial sector. Experience gained in Belarus and abroad is accepted.
4. Local Documents
For registration, a cryptocurrency exchange must develop local documents:
- Rules for trading cryptocurrencies.
- The procedure for admitting participants to cryptocurrency trading and excluding participants from the list of participants.
- Rules for admitting cryptocurrencies to trading.
- Rules for internal control to prevent the legalization of criminal proceeds.
- The procedure for managing conflicts of interest.
- Tiles regarding outsourcing.
- Information security policy (cybersecurity).
5. Trading System
A cryptocurrency exchange needs a secure online trading system that will perform the functions necessary for trading cryptocurrencies. In particular, the system must ensure:
- Reception and registration of applications for cryptocurrency transactions and control of such applications.
- Execution of transactions with cryptocurrencies.
- Determination of prices for cryptocurrencies.
- Preparation of documents based on the results of transactions with cryptocurrencies.
- Processing and storing information for transactions with cryptocurrencies.
- It is impossible to conduct anonymous transactions with tokens or transactions that violate the requirements of the state and the Supervisory Board of the High-Tech Park.
- The information trading system must undergo a security audit, which a report on the audit results confirms.
6. Website
Future crypto exchanges must have a website or the right to use a domain name.
7. External Audit Report
The applicant – the future crypto exchange must provide the Secretariat of the Supervisory Board with the external audit’s report (or reports), including a legal audit. This document must contain substantiated conclusions that the applicant’s documents meet the requirements for registration as a resident of the HTP.
The report (reports) must be received on the date of the applicant’s application for registration as a resident of the HTP or up to 30 days before this date.
8. Requirements for Affiliated Persons, Beneficial Owners
The applicant must have one or more affiliated persons who:
- The owners of its property;
- Act as founders (participants);
- Have been operating as residents of the HTP for at least three years;
- Properly carry out their business projects.
The applicant may also have one or more beneficial owners who are also beneficiaries of one or more legal entities — HTP residents who have operated for at least three years and implemented their business projects properly.
The applicant’s beneficial owners must own funds totalling at least 5 million US dollars on the date of application for registration as an HTP resident or within 90 days before this date. These funds must be placed in bank accounts and (or) in deposits in banks and non-bank credit and financial institutions of the Republic of Belarus, foreign banks and other credit institutions. In this case, it is necessary to provide information on the sources of origin of funds.
9. Hiring the Necessary Employees
To operate a company as a crypto exchange, it is necessary to hire:
- A manager or a management company. The manager must have a higher education.
- A chief accountant or an outsourcing organization for accounting. The chief accountant must meet specific requirements: have at least three years of experience as a chief accountant, have a higher education in economics or retraining based on the entire education, and have documents on training in IFRS (international accounting standards and (or) financial reporting).
- An official who is responsible for risk management.
- An official is responsible for determining the requirements to prevent the legalization of criminal proceeds.
- An official who is responsible for compliance with the High-Tech Park regime. One official can perform these three functions of officials.
- An official who is responsible for system administration and information security. Such an employee must have higher education and at least three years of experience in the speciality.
To register as residents of the High-Tech Park, the application forms of these persons must be attached to the registration documents package.
All employees must not have an outstanding or unexpunged conviction for crimes against property, information security, or economic activity. There are also other requirements for the business reputation of such employees.
You must also hire an employee to support users or create a user support department.
10. List of Beneficial Owners
To register as a resident of the High-Tech Park as a crypto exchange, the company must add to the package of registration documents a list of beneficial owners and a diagram of the company’s organizational structure with a description of the management system and the procedure for making management decisions. Beneficial owners must meet specific requirements. For example, they must not have tax debts, an outstanding conviction, bankruptcy, or financing of terrorist activities.
11. Disclosure of Information
The documents for registering a company as a resident of the High-Tech Park – crypto exchange must include questionnaires of the owners of the company’s property and beneficial owners. The questionnaires must answer a number of questions, particularly about debts in the amount of over 1,000 basic units (this is 40,000 Belarusian rubles or approximately 11,0000 euros), about the facts of license cancellation three years before submitting documents for registration.
12. Financial Standards
Companies that submit documents for registration as a crypto exchange – residents of the High-Tech Park must prove compliance with financial standards:
- The financial dependence standard must not exceed 0.85. This indicator is calculated as the company’s long-term and short-term liabilities ratio to the total assets reflected in the balance sheet.
- The short-term liquidity standard is at least 1.
- The financial stability standard is at least 0.75.
- The standard for the concentration of borrowed capital is no more than 1.
13. Software for Identifying Virtual Wallets
The company must agree to use software to summarize and analyze clients’ use of virtual wallets.
14. Report on Compliance with the Requirements Imposed on Crypto Exchanges
AA company that wants to become a resident of the High-Tech Park and operate a crypto exchange must enter into an agreement with one of the organizations or their representatives to analyze compliance with the crypto exchange requirements: PricewaterhouseCoopers, Deloitte Touche Tohmatsu, Ernst & Young, or KPMG. In the future, such a report must be submitted to the HTP Supervisory Board annually.
Registration as a resident of the High-Tech Park
A company that has prepared all the documents for registration as a resident of the HTP – a crypto exchange submits a package of documents to the Secretariat of the HTP Supervisory Board. The head of the company fills out an application for admission to the HTP in person.
The Secretariat checks the documents and returns them for revision, if necessary. Deficiencies must be corrected within five days, after which the package of documents can be re-submitted to the Secretariat. In case the company is registered as a crypto exchange resident of the HTP, the Secretariat issues a certificate of registration. The decision to accept the company into the HTP comes into effect from the month following the month in which the Supervisory Board made the decision.
Contact us
If you have any questions or disputes regarding registaring a crypto exchange in Belarus, we will be happy to help! Our long-term experience in divident payment will help you resolve any disputes in this area.
- +37529366-44-77 (WhatsApp, Viber, Telegram);
- info@ambylegal.by.
