New Belarusian Cryptocurrency Regulations: What is the Future of P2P Trading?

In the global wave of cryptocurrency, countries have different attitudes towards their regulatory policies. Belarus, an Eastern European country, has attracted attention for its relatively open crypto policy. However, recent news about legislation to ban P2P (peer-to-peer) cryptocurrency transactions has caused widespread discussion and concern in the market. What exactly does this new regulation in Belarus mean? What impact will it have on the future of cryptocurrency? Next, let's take a deeper look at this issue.

Belarus's cryptocurrency policy has undergone significant changes in the past few years. In 2018, the government introduced the "Belarusian Digital Economy Development Law" in an attempt to attract investment in blockchain technology and cryptocurrency-related companies. This policy has made Belarus a "friendly soil" for cryptocurrency and blockchain technology in Eastern Europe, attracting a large number of entrepreneurs and investors. However, as the market changes, the government has begun to increase its supervision of cryptocurrencies, especially in the field of P2P transactions.

P2P transactions, as the name suggests, refer to transactions conducted directly between users, eliminating the involvement of intermediaries. This method is favored by many investors for its convenience and anonymity, especially in the cryptocurrency market. However, it is precisely because of this characteristic that P2P transactions have also become a hotbed for money laundering, fraud and other illegal activities. After considering these risks, the Belarusian government decided to take measures to restrict or even ban this form of transaction.

In this context, Belarusian government officials said that the purpose of banning P2P transactions is to protect the interests of investors and maintain the stability of the financial market. They believe that the anonymity of P2P transactions makes supervision difficult and easily leads to an increase in financial crimes. In this regard, many industry insiders expressed understanding. After all, the volatility and uncertainty of the cryptocurrency market in recent years have put many investors at great risk.

However, there are also many opposing voices. Many cryptocurrency supporters believe that the ban on P2P transactions will stifle innovation and limit users' right to choose and trade freely. In their view, the core value of cryptocurrency lies in decentralization and free trading, and government intervention is undoubtedly a deviation from this concept. Especially at present, many countries and regions around the world are gradually relaxing the regulation of cryptocurrencies, and Belarus's move may lead to a decline in its competitiveness in this field.

In addition, the ban on P2P transactions may also lead to further centralization of the market. Many small exchanges and start-ups rely on P2P transactions to obtain customers and liquidity. If this market is blocked, it may cause more users to turn to large exchanges, increase market concentration, and weaken competition. This is undoubtedly a huge blow to small businesses that hope to gain market share through innovation and flexibility.

Globally, the regulatory trend of cryptocurrencies also presents diversified characteristics. For example, the attitude of regulators in the United States has gradually become stricter towards cryptocurrencies, especially in terms of anti-money laundering and consumer protection. In Europe, although some countries are cautious about cryptocurrencies, on the whole, many countries are working to develop a more reasonable regulatory framework to promote the development of this emerging market.

Against this background, Belarus's legislative trends are particularly abrupt. On the one hand, the government hopes to maintain financial stability by restricting P2P transactions, but on the other hand, it is unwilling to lose the opportunity to attract investors. How to find a balance between regulation and innovation has become an urgent problem for the Belarusian government to solve.

Many industry experts have put forward different views on this issue. Some suggest that the government should introduce a more flexible regulatory framework, such as setting up a compliant P2P trading platform to ensure the transparency and security of transactions; while others believe that the government should dialogue with industry participants and jointly formulate practical policies to promote the healthy development of the entire industry.

In this rapidly changing market, Belarus's cryptocurrency policy will undoubtedly have a profound impact on the entire industry. As global attention to cryptocurrency continues to rise, whether Belarus can remain competitive in this field remains a question of concern.

For the majority of investors, the introduction of this policy in Belarus means that they need to re-examine their investment strategies. In a market with an increasingly uncertain policy environment, how to avoid risks and find opportunities will become a challenge that every investor must face. At the same time, investors should also strengthen their understanding of the cryptocurrency market and pay attention to policy trends in order to make more rational decisions.

In the days to come, Belarus's cryptocurrency policy will continue to evolve, and how to find a balance between regulation and free trading will be the direction of joint efforts by all parties. In any case, this new regulation in Belarus reminds us that while pursuing innovation and development, risk management is always an important topic that cannot be ignored.

In short, the news that Belarus plans to legislate to ban P2P trading of cryptocurrencies has undoubtedly brought new challenges and opportunities to the market. In this rapidly changing era, only by constantly adapting and adjusting can we remain invincible in this uncertain market.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Coin Circle (120Btc.com) News: Belarus announced on Sunday (2) that it is planning to ban peer-to-peer (P2P) cryptocurrency transactions, which can only be traded through local exchanges, causing local users to worry whether the authorities are no longer friendly to cryptocurrencies. In addition, this move seems to contradict and confuse Belarus's continued promotion of multiple welfare measures to local crypto companies and the passage of multiple bills supporting the free circulation of cryptocurrencies. 

P2P is banned, but local exchanges can 

According to Decrypt, the Belarusian Ministry of Internal Affairs announced on July 2 that in order to prevent P2P services from becoming a channel for criminal organizations to cash out illegal gains, it is drafting regulations to prohibit cryptocurrency exchanges or direct transactions between individuals. In the future, transactions will only be allowed through exchanges registered in the Belarusian High-Tech Park (HTP). 

A spokesman for the Press Department of the Belarusian Ministry of Internal Affairs pointed out: Since the beginning of this year, the Cyber Crime Fighting Department has stopped 27 activities that provide illegal cryptocurrency exchange services. The total amount of illegal profits exceeded US$8.8 million. Therefore, in order to improve transparency and control, we will work on legislative innovation and intend to ban cryptocurrency transactions between individuals. 

He added that the authorities are expected to introduce a practice similar to foreign currency exchange in licensed exchanges, making it impossible to withdraw funds obtained through improper means. He also emphasized that after strengthening supervision, cyber technology crimes will become unprofitable in Belarus.

Crypto enthusiasts question the government's ability to enforce the law

Jan3 CEO Samson
Mow, as a Bitcoin advocate, said through Cointelegraph: "Banning P2P is not impossible, but it is not easy." He took China, which strongly banned the circulation of cryptocurrencies as early as 2021, as an example, indicating that many users still trade and obtain cryptocurrencies through P2P channels.

What is HTP? 

The Belarusian High-Tech Park (HI Tech
Park, HTP) was founded in 2005 and transformed into HTP2.0 in the Digital Economy Act passed in 2017. It is committed to technologies such as blockchain, financial technology, and engineering solutions to create a good environment with low taxes and high capital flow freedom. It has been rated as the "Silicon Valley of Eastern Europe" and "World AI Development Center" by many international media.

Contradictory to previous friendly attitude

Belarus has changed its previous crypto-friendly attitude and has severely restricted P2P, leaving crypto users at a loss.

Previously, the authorities had legislated to legalize all cryptocurrency-related activities (including ICOs and the construction of smart contracts) before March 2018. Belarus Bank even launched its own in 2020, allowing Belarusian and Russian users to buy Bitcoin with Visa cards. At the same time, in March this year, the country also provided incentives including tax exemptions and visa exemptions to those who participated in mining, creating blockchain or crypto-related infrastructure and companies.

In April this year, Belarus was also rated as one of the top ten cryptocurrency tax-friendly countries by Glassnode.

All kinds of seemingly friendly policies are in strong contradiction with the ban on P2P this time, especially since the local government just passed the "Free Circulation of Cryptocurrencies" bill in February last year.