
Belarus to create a regulatory environment for circulation of cryptocurrencies - anorsich
https://media.dev.by/decree_media_kit_en.pdf
======
pedrocr
The blockchain hype seems to have some parallels to the Second Life[1] one.
The technology isn't quite there, the valuations are immense, and it all seems
like a real life implementation of a Neal Stephenson novel. Second Life
doesn't seem to have gone anywhere but it doesn't mean cryptocurrencies won't
as well. From the outside they do look just as niche and generally lacking in
use cases.

[1]
[https://en.wikipedia.org/wiki/Second_Life](https://en.wikipedia.org/wiki/Second_Life)

~~~
jesusthatsgreat
Second Life is a virtual world where virtual stuff can be traded.

Blockchain technology is real world technology. It can help to solve really
challenging problems and make real world systems more efficient / productive /
cost effective / autonomous.

The two are in no way comparable... if you're looking for a comparison to
Second Life which happens to use blockchain technology, check out
Decentraland: [https://decentraland.org/](https://decentraland.org/)

~~~
fwdpropaganda
You're making the virtual/real world dichotomy with the hindsight of knowing
that Second Life didn't go anywhere. People back then also called it a
technology: it's a technology that allows e.g. in-person meetings without the
need for displacement. It's a technology that disrupts physical space, the
ultimate disruption!

No, sorry, such dichotomy is irrelevant. What's relevant is that Second Life
didn't get traction.

How's Bitcoin doing as a technology? Lots of traction! Now it remains to be
seen where it can keep it. What applications does it have? I'm not sure, as
right now there's some 250k backlogged transactions because currently the
blockchain can't seem to handle even a trivial number of transactions.

~~~
patrickaljord
Blockchains reached a valuation of $0.5 trillion and attracted all the biggest
financial institutions (Goldman Sachs yesterday). Second Life traction never
got even a fraction of that. Also Blockchain growth has been going for 9 years
now, Second Life growth lasted 3 years
([http://www.slate.com/articles/business/moneybox/2011/11/why_...](http://www.slate.com/articles/business/moneybox/2011/11/why_second_life_failed_how_the_milkshake_test_helps_predict_which_ultra_hyped_technology_will_succeed_and_which_won_t_.html)).

~~~
fwdpropaganda
> Blockchains reached a valuation of $0.5 trillion and attracted all the
> biggest financial institutions (Goldman Sachs yesterday)

You know how bubbles work, right? What I mean is that what you've described is
compatible with the "bubble" hypothesis just as it is compatible with the
"disruption" hypothesis. I need to see the thing solving problems to believe
the thing.

This is just me though, I'm not trying to convince you. The point I meant to
make in my previous post was not a case for/against Bitcoin, but against the
idea that "Bitcoin is nothing like Second life". It is in some important
sense: there is a reasonable case for both and it's still too early (now for
Bitcoin as at the time for SL) whether they can deliver on their promises of
disruption.

EDIT: But if you want to talk about the credibility of Bitcoin, I notice you
didn't respond to my observation. I don't care if it's $0.5tr or $500tr:
there's still a backlog of 250k transactions. The thing is unusable right now.
Now, this might be solved, yes. But right now it's a serious concern. Do you
not agree?

------
myth_drannon
Just FYI Belarus is not a democracy and the laws change at the whim of the
rulers. Read the journal of this blogger who got arrested there
[https://www.bbc.com/news/amp/blogs-
trending-38804499](https://www.bbc.com/news/amp/blogs-trending-38804499), the
people(the foreign nationals) who were in jail with him...

~~~
lowry
Just FYI, Belarusians often refer to Donald Trump as the american Lukashenka.
They share quite a few traits.

~~~
docdeek
I imagine all leaders share some traits no matter how good, evil, or truly
monstrous they are. The reality is, however, that Americans can vote their
leader out of office in a couple of years while in Belarus they just cannot.

~~~
vbezhenar
Of course they can. They just chose to re-elect him. Belarus is a democratic
republic with proper election system.

~~~
kbart
It's not hard to choose when there's only 1 real candidate. USSR had elections
too.

~~~
vbezhenar
There were 4 candidates on the last elections. More than in US, AFAIK.

~~~
pound
Every election in Belarus in the last couple of decades is a circus.
Lukashenko rules for 23 years now having complete control over elections.

------
anorsich
No taxes (until 2023) on mining, selling/buying tokens. Here are details:

• The rights of physical and legal entities in terms of token circulation are
defined. Legal entities are entitled to possess tokens, create and list their
own tokens through HTP residents; buy, exchange tokens and perform other
operations using tokens only through the cryptocurrency exchanges and
cryptocurrency exchange operators. • Individuals are entitled to possess
tokens; perform mining; exchange tokens, buy and sell them for Belarusian
rubles, foreign currency, e-money, as well as present and bequeath tokens. The
mining activity of individuals, tokens purchasing and sale shall not be
considered entrepreneurial activity. • Tokens and revenues from operations
with them shall not be subject to declaration by the individuals. • Turnovers,
profits (income, proceeds) from various operations with tokens are not
recognised as taxable items until January 2023.

~~~
neals
So we're all setting up shop in Belarus to get our Crypto profits tax-free?

~~~
lowry
Belarus is finishing its first nuclear power station and wants to use the
surplus capacity. Initially, they planned to sell it to Baltic countries, but
these are in the EU, so it is not yet sure they will cut a deal. EU has a huge
anti-nuclear, pro-carbon lobby.

~~~
ceasarby
Yeah, Lithuania making big deal out of this nuclear station. They aren't happy
that it's based close to the border and they trying to say that it's not safe,
blah-blah-blah, nobody will buy electricity and so on. Other countries don't
have issues with this station though, EU checked it and found everything
within norms. But every time something happens at the construction, like they
pour concrete at the wrong spot, Lithuania blows the whistle. Lukashenka said
that it will be build no matter what, and neighbors will have to deal with it.

~~~
aburmist
Lithuania had its own Nuclear Power plant (Ignalina Nuclear Power Plant) which
it closed in order to join the EU. At first, it was promising to its people
that the EU will help it to build another one ("safer"), but of course nothing
happened. And with the new Belorussian Nuclear Power Plant, there is no good
business case for it anymore.

~~~
lucaspiller
Further to this, one of the main concerns for Lithuania (and other Baltic
states) is energy independence from Russia. Ignalina made them a net-exporter
of electricity, but now almost 70% of electricity is imported, mostly from
Sweden. Gas and oil mostly comes from Russia, and all national gas companies
in the Baltic states are largely owned by Russian companies.

As you say there is no reason for another plant to be built in the area now,
but it'll also mean the Baltic states most likely end up purchasing
electricity from Belarus. As they have strong political ties with Russia, that
doesn't really help their case in becoming more independent.

~~~
ceasarby
The same case is for Belarus. Building this station is part of becoming energy
independent from buying Russian gas. Lukashenko will build it even if it's
non-profitable and Lithuania won't buy energy from it. He's stubborn SOB when
it comes to independence.

------
kirylpl
JFYI, in Belarus we are not "White Russians", but we historical Lithuania.
Please not blame us with moscowitians. We are not so wild. [http://history-
belarus.by/images/img-events/blood_potop/hmel...](http://history-
belarus.by/images/img-events/blood_potop/hmelnicky_1648-54.jpg)

------
Whackbat
Many of the bold claims in this document are completely unsubstantiated.

Question 7: How does the Law regulate Blockchain and cryptocurrencies? It
can't. The principle argument that deals will be safe because the HTP
residents are 'trusted and respectable companies' is naive and invalidates the
fundamentally trustless model of blockchains.

Question 8: How is the mining activity of individuals regulated? Won't they
launder funds through Belarus? Money laundering happens every day with fiat
currency, and with cryptocurrencies this is even easier. Exchanging currencies
across both blockchains and boarders introduces innumerable difficulties for
detection of money laundering.

~~~
drvdevd
The more blockchain regulation I see, the more I have to question the
technical competence of regulators _or_ the _actual_ policy and implementation
goals they have in mind.

Do they have technologists telling them, “yes we can track this.” Or do they
not actually care about what they claim to, eg: money laundering...?

------
neals
There's some interesting chances here for governments.

In the 80's, Luxembourg introduced some progressive tax-incentives for space
companies. The inflow of business related to space (mainly satellite parts and
software suppliers) has had and enormous impact on the economy of Luxembourg.

I think there's chances in the Crypto/blockchain space for small economies as
well.

~~~
John_McT
Certainly! Estonia has taken a very progressive stance on cryptocurrency and
tech development as a whole and it's great to see other countries do the same!
I was at a blockchain conference last weekend in Minsk and nearly every
speaker ended their presentation with an open call for developers to apply for
their projects.

Politics and underlying motivations aside, it gives a lot of people work
opportunities as the field continues to grow.

------
emptyfile
"I am the last dictator in Europe" Belarussian President Alexander Lukashenko

~~~
donquichotte
"No you're not." Recep Tayyip Erdoğan

~~~
lowry
Geographically, Turkey is not Europe, right?

~~~
cies
Mostly not:

[https://en.wikipedia.org/wiki/East_Thrace](https://en.wikipedia.org/wiki/East_Thrace)

Then again, what is Europe, geographically? If I count continents, I count
something often call "eurasia" as one continent, not two. I think cutting it
in two over some mountain rig is a bit, well, arbitrary.

~~~
donquichotte
In 2015, the "European" Games were held in Baku, Azerbaijan. Another dodgy
president (Ilham Aliyev), if you count Azerbaijan as Europe.

~~~
cies
As stated I do not see a "geographical europe" on the map. I see eurasia. And
being "european" definitely has nothing to do with having clean politicians.

------
pleasecalllater
Cool country. Is the 11 year old president son still wearing a general
uniform?

Come on. This regulation movement is made only to have bigger control over the
people. Nothing more.

~~~
nasredin
Ding, ding ding. We have a winner!

I think people in the West who do not have to experience having one guy as
"president" for 20+ years are either naive or ignorant of how these autocrats
or kleptocrats operate.

\---

Fun fact: Belarus still has the KGB and a lot of Soviet era imagery on emblems
and such.

~~~
ceasarby
It's sad fact :(

------
imhoguy
So Belarus becomes tax heaven for crypto-currencies, but is it safe heaven?
One can transfer money out of Belarus but then one's country tax collector
will knock the door. And what if one day Mr Alexander decides to nationalize
these companies including foreign currency assets?

~~~
anorsich
Nothing is safe. A fact, that validity period of HTP's special legal status
will be extended until Jan 2049, give us some level of confidence. It won't be
that easy to turn around.

~~~
imhoguy
But it would be better the government be driven by long-term and wider
improvements like overall business law stabilization. This case is narrow
short-term opportunity. Anyway I wish you guys good luck!

~~~
anorsich
I agree, but they're making quite good steps now. This document also declares:
`Investment according to English Law will be allowed.` The process takes time
but Belarus slowly removes borders and getting better. From 2017, residents of
80+ countries (including entire EU and US) were allowed to enter Belarus
without a visa for 5 days (subject to be extended even further)

~~~
ishtu
No investor in their mind would believe this. Belarus needs structural reforms
first.

~~~
ceasarby
Actually, there will be risk takers on top of existing ones.

Belarus is the source of great engineers that created Viber, Juno, MSQRD, WoT
to name a few. PVT revenues will reach $1 bln. in 2017. This decree just added
more perks to already existing tax privileges.

The system is stable and growing, why kill the cash-cow? IT enterprise is not
and oil factory that you can nationalize. Engineers will take the laptop and
fly away same day and your seized company will turn into empty building with
zero profit. Even dictators understand it.

------
hugodiaz
In the last pages, it seems he wants to upset his Russian and Ukrainian
neighbors. Even there are a graph how the US investments fell.

------
koskeller
If you need help in Belarus or have questions – ping me in telegram/facebook:
koskeller

------
alex_veremeenko
Viva Dictator!

