On the issue of national characteristics of thermorectal cryptanalysis or "Where cryptans live well" - part 1

In connection with the adoption of new legislation in the Russian Federation and other countries regarding cryptocurrencyregulation - many people, one way or anotherrelated to cryptocurrencies, there were well-founded concerns. What awaits us in the future and how will the ambiguous decisions of the heads of state affect the well-being of ordinary people and entrepreneurs? To assess the situation as a whole, it's time to clarify: how do cryptocurrency traders, business owners related to cryptocurrencies, as well as simply owners of a certain number of digital assets live in different countries of the world?

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Different countries have different approaches to cryptocurrency legislation. According to statistics from the resourceCoin.Dance– in most countries of the world, the use of cryptocurrencies is not prohibited by law or even legalized.

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But, in some countries, cryptocurrencies are completelyprohibited, and punishment is provided for their use - these are Afghanistan, Algeria, Bangladesh, Bolivia, Pakistan, Republic of Macedonia, Saudi Arabia and Vietnam.

We will not consider them at all - we should not be equal to the bad.

The review, consisting of five parts, will include more than thirty countries and regions that are quite loyal to cryptocurrencies - this should be enough to assess the overall situation for 2019-2020.

Aspects of:

• Cryptocurrency ownership and use

• Cryptocurrency trading

• Cryptocurrency related business

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Questions:

• Limitations

• Tax

• Administrative and criminal prosecution

The information provided does not claim to be completely accurate and requires clarification from local legal consultants. All statutes are current at the time of this writing.

Yes, indeed, despite the rather extensivematerial regarding the regulation of cryptocurrencies in world practice and the availability of fairly clear instructions (in some cases) - legal descriptions are quite spatial (as well as deliberately flexible) and require actual clarification from a specialized specialist.

GENERAL SITUATION: NO COUNTRY HAS RECOGNIZED BITCOIN FOR "REAL" MONEY, BUT MANY COUNTRIES HAVE ADOPTED LEGISLATION TO PAY TAXES ON BITCOIN AND CRYPTOCURRENCY OPERATIONS. HERE HERE.

The position of the cryptocurrency is not much different frompositions of virtual gold from WoW or toy dollar from Second Life. Those. Governments have long understood that this is not much different from ordinary money and has absolutely similar properties with one important difference: they do not print it. Although, which does not happen ...

But, we will not consider here the attitude and regulations of countries regarding ICOs and tokens in general, as well as plans to release a state "stable" cryptocurrency.

Legislative aspects regardingmajor cryptocurrencies, mainly Bitcoin: general regulation, taxes on trading and mining, as well as any kind of prohibitions. In some cases, the arbitrariness of the law enforcement agencies and other sanctions obscenities will be mentioned.

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The approach in "civilized" countries is standard:

• If the cryptocurrency is recognized in any form, it is subject to taxation, like income in any other form;
• Exchanges and exchangers are subject to the rules on combating money laundering and terrorist financing, which means they are obliged to find out the identity of their customers;
• Usually,cryptocurrency is not prohibitedas a means of payment (although not regarded as such);
• Despite frequent cases of arbitrariness - inIn most cultural countries, no one openly persecutes traders, miners, or simply owners of cryptocurrencies. It should be borne in mind that cryptocurrencies are the same money, so their excessive availability is sure to arouse interest among "competent authorities" and representatives of the criminal world.

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Another trend:in many countries, key laws regarding the regulation of cryptocurrencies were adopted in 2020 or appointed for 2021. As you can see, the explosive growth of the exchange rate was quite predictable, and the states, along with (or in conjunction) with specialized companies, are participating in the race for control over the promising market ... Apparently, even at the state level, they understand that the cryptocurrency market has become (and was) much more profitable than the traditional asset market. And this is clearly demonstrated by the current rate of cryptocurrencies.

Russia

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In 2020In Russia, the issue of the final establishment of the status of cryptocurrencies was repeatedly raised, and as a result, a fundamental bill was formed. It is worth considering how the Russian authorities plan to control mining, which ones want to levy taxes on transactions with bitcoins and other details of the new federal law on digital financial assets.

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Legislative status

There is a legal framework. Free traffic is prohibited. The government's attitude is sharply moderate.

Basic documents and definition of cryptocurrencies

It is immediately worth noting that after carefulfamiliarization with the issue - the situation radically changes its meaning. In fact, the new law does not regulate such concepts as mining, cryptocurrency trading, taxation of crypto-businesses in the Russian Federation (due to the only significant ban) and other typical things. But first things first.

On July 22, 2020, Russian President Vladimir Putin signed the law “On Digital Financial Assets”, whichdefines cryptocurrenciesand mercilessly prohibits their use in the country as a means of payment. The document has already been published in the public domain, and the rules themselves came into force on January 1, 2021.

In fact, the word "Bitcoin" does not appear in the document, although it does indeed match the proposed definition:

"The digital currency is the aggregateelectronic data (digital code or designation) contained in the information system, which are offered and (or) can be accepted as a means of payment that is not the monetary unit of the Russian Federation, the monetary unit of a foreign state and (or) an international monetary or unit of account, and (or) as an investment and in respect of which there is no person obligated to each owner of such electronic data, with the exception of the operator and (or) nodes of the information system, only obliged to ensure compliance with the procedure for the release of these electronic data and the implementation of actions in relation to them to enter ( change) entries in such an information system to its rules ”.

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FEDERAL LAW ON DIGITAL FINANCIAL ASSETS, DIGITAL CURRENCY AND AMENDMENTS TO SEPARATE LEGISLATIVE ACTS OF THE RUSSIAN FEDERATION

Mirror: http://www.consultant.ru/document/cons_doc_LAW_358753/ (more convenient to study)

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Restrictions and taxes on the use of cryptocurrencies

Question:who carefully read this 107-page document? If, however, you have read it, you will recognize that the smallest part is devoted specifically to decentralized cryptocurrencies - Article 14.

First of all, “we are talking about a banuse of digital currency as a means of payment in any way that allows you to assume payment for goods, works, services, and on the prohibition of the dissemination of information about the offer or acceptance of digital currency as payment "

The most important part: Article 14. Circulation of digital currency (see clauses 5 and 7)

"Legal entities,whose personal law is Russian law, branches, representative offices and other separatedivisions of international organizations and foreign legal entities, companies and other corporate entities with civil legal capacity,created on the territory of the Russian Federation, individuals who are actually in the Russian Federation for at least 183 days within 12 consecutive months are not entitled to acceptdigital currencyas consideration forgoods transferred by them (them), work performed by them (them), services provided by them (them) or any other method that allows for payment of goods (work, services) in digital currency.”

"In the Russian Federationdissemination of information aboutoffering and (or) accepting digital currency as consideration for goods transferred by them (them), work performed by them (them), services provided by them (them), or any other method that allows for payment of goods (work, services) with digital currency.”

But, apparently, they can be sold to each other.At the moment, within the meaning of the law, payment transactions in cryptocurrency will be prohibited. In turn, operations to exchange cryptocurrency for fiat funds or other cryptocurrencies are not limited.

But, be that as it may, large and small cryptocurrency businesses in Russia will simply change their jurisdiction. Indeed, in none of the sufficiently developed countries such bans are observed.

Everything else in the law is devoted to CFA issues– which“Digital rights are recognized, including monetaryrequirements, the possibility of exercising rights under equity securities, the right to participate in the capital of a non-public joint-stock company, the right to demand the transfer of equity securities, which are provided for by the decision on the issue of digital financial assets in the manner prescribed by this Federal Law, the issue, accounting and circulation of which is possible only by making (changing) records in the information system based on the distributed register, as well as in other information systems ”.

Therefore, DFA is not Bitcoin or Ether, whichare partly regulated only in Article 14, which means a ban on their free circulation on the territory of the Russian Federation. At the same time, we are talking only about payment for goods and services. Purchase, sale, transfer, cashing out are still not regulated by any special law.

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The rest of the community's concerns are based only on information about the existence of the Finance Ministry's plans for the further development of legislation in this direction.

In more detail, at the end of August 2020, the Ministry of FinanceRussia has developed a package of bills on digital currency. True, the specific proposals of the Ministry of Finance were not published in the public domain (sent to “interested departments”), but, according to a number of large Russian media outlets, they have this kind of 25-page document (not provided for review), which colorfully describes future prospects for the owners cryptocurrencies on the territory of the Russian Federation. Thus, the information cannot be absolutely reliable, but it is simply necessary to take into account such sentiments.

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Administrative and criminal prosecutions for cryptocurrency ownership

There are no specific penalties for owning cryptocurrency.

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True, Russian President Vladimir Putin has alreadysigned a decree according to which officials and candidates for relevant positions are required to provide information about their digital financial assets.

According to the document, these persons must "provide notification of digital financial assets belonging to them, their spouses and minor children, digital rights, including simultaneously digital financial assets and other digital rights, utilitarian digital rights and digital currency (if available)."The data must be transmitted within January 1 to June 30, 2021.

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And, be that as it may, it is proposed to introduce real administrative and criminal liability for violation of the rules established by laws.

Citizens can receive up to 100 thousand rubles. a fine and up to seven years in prison, legal entities - up to 1 million rubles. fine.

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Additionally, the Bank of Russia clarified the grounds forblocking of bank accounts. According to the amendments to Regulation 375-P, financial institutions have the right to freeze or even block a bank account in the event of signs of digital currencies circulation. Cryptocurrency transactions, as well as "transactions related to the circulation of digital rights, which are characterized by one-way, regularity, large amounts" are now included in the list of suspicious transactions for money laundering or terrorist financing. The approved amendments will enter into force in October 2021.

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Limits and taxes on cryptocurrency trading

Private trading is currently notis regulated on the territory of the Russian Federation, and is limited only by laws imposed on legal entities operating in the jurisdiction of the Russian Federation, and providing an opportunity to trade financial assets to interested parties. This refers to the "Forex Law" of 2016, which, in fact, has changed little for ordinary Russian traders.

General taxation on profits in fiat, because Any income must be declared by law. According to tax legislation:“Income from transactions with cryptocurrencies will be taxed according to the general procedure: sales income minus acquisition costs, the difference is taxed at a rate of 13% for residents of the Russian Federation".

Administrative and Criminal Prosecutions for Cryptocurrency Trading

Not provided for in the absence of other crimes provided for by the legislation of the Russian Federation.

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Restrictions and taxes on businesses related to cryptocurrencies

Taking into account clause 5, article 14 - the opportunities for residents of the Russian Federation will be rather limited.

You cannot accept cryptocurrencies as payment, but you can issue it, as well as sell and buy.

Individual entrepreneurs and legal entities received the right to issue CFA.The Bank of Russia will be able to permit the purchase of certain CFAs only by qualified investors and / or only for a limited amount. Only people with higher education, at least two years of experience in managing a financial or IT organization, or with similar work experience in high government positions, can become administrators of the information system in which CFA are issued. Other platform employees also have experience and qualifications requirements. Those suspected of terrorism and money laundering will not be able to do this.

The law allowed the functioning of peculiar“crypto exchanges” (operators of exchange of digital digital assets and other digital rights). Companies with an authorized capital and net assets of at least 50 million rubles will be included in the register of Central Bank exchanges eligible for such activities. The company must not have any membersregistered in offshores... Requirements for the management of exchanges are similarrequirements for operators of information systems. Both are entitled to recognize users as qualified investors in accordance with legal requirements.

The Digital Financial Assets Law introduces a newThe subject of the Russian crypto market is digital financial asset exchange operators. They are essentially crypto exchanges, but only for the exchange of tokens, which are recognized under Russian law as “digital rights.” Today, such special laws are the Federal Law on investment platforms and the Federal Law on DFA. Exchange operators can organize trading of utilitarian digital rights and digital financial assets.

Existing crypto exchanges that trade cryptocurrencies such as bitcoin and ether do not fall under the definition of a new entity and remain unregulated.The CFA Law directly allows for the possibility of organizing a cryptocurrency exchange platform in Russia.

“The organization of issue and (or) release, organization of circulation of digital currency in the Russian Federation is regulated in accordance with federal laws”

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Mining new law does not regulate, however, at the end of August 2020, the Ministry of Finance wasa package of bills on amending the document that has not yet entered into force was sent to the relevant departments. It indirectly mentions the mining of cryptocurrency and writing software. However, the same paragraph prohibits receiving payment for such actions in digital currency.

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The CFA Law does not regulate issues related totaxation of digital financial assets. Thus, the question of the tax implications of transactions with digital virtual currencies remains open. At the same time, in the world, taxation issues are most often resolved through specialized explanations of the tax authorities on the systems for paying taxes on transactions with digital assets. Thus, the turnover of crypto assets will be subject to general taxation rules.

"&#8230; special procedure for taxation of incomeindividuals are not identified when carrying out transactions with cryptocurrencies; individuals must independently calculate the tax and submit a declaration to the inspectorate; the tax base for transactions of purchase and sale of cryptocurrency is determined in rubles as the excess of the total amount of income from the sale of cryptocurrency over the total amount of documented expenses for its acquisition; Until the legislative settlement of issues related to the circulation and taxation of cryptocurrencies, when determining the tax base, it is necessary to proceed from Art. 220 of the Tax Code of the Russian Federation,” says the letter from the Ministry of Finance.

Administrative and Criminal Prosecutions for Cryptocurrency Business

In the absence of violations of the new law on CFA, the cryptocurrency business itself is not a criminal activity and falls under the influence of other relevant laws of the Russian Federation.

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In conclusion

It should be noted that against the background of “acuteepidemiological situation "in 2020, Russian citizens (apparently) began to trust the banking system less, and increasingly turn to cash, i.e. use the services of black cash-out offices.

At the same time, there is a significant increase in the number ofusers of cryptocurrencies. As you can see, the "cash-cryptocurrency-cash" scheme evokes more trust even among respectable citizens than their constantly suspicious bank.

And it is not surprising, because the tax regime is becomingincreasingly harsh, causing more and more demand for black market services. According to some reports, by the end of 2020, this allowed cashiers to significantly reduce their percentage of transactions.

Hundreds of schemes for gray financial flows have appeared, and no measures can be taken to eliminate them completely.

From January 11, 2021, amendments to"Anti-cash" ФЗ-115 - now any operations over 100,000 rubles. fall under more than tight control. The purchase of goods, cash withdrawals from bank cards, e-wallets, transfers by mail, Internet income, real estate transactions, gambling, etc. - they all want to be placed under the "cap".

Free withdrawal of a more or less significant amount from the bank is a tangible problem, especially if it exceeds the established threshold of 100,000 rubles.

And, perhaps, the demand for cash was caused not so much by the pandemic as by the release of a new version of the "anti-cash" law.

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By the way, I will note that the government's decisions are likeseven Fridays for the week. In August 2020, all Russians were threatened with a complete ban on traditional electronic payment systems such as Yandex.Money, PayPal and Kiwi. After all, they are used by terrorists. However…). And already in December 2020, a bill is submitted for consideration, designed to generally allow Russians to use "semi-anonymous" wallets with simplified verification. Understand this as you wish.

Ukraine

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In this situation, Ukraine faced a choice:prohibit cryptocurrency or implement appropriate regulation. Ukraine chose the second option and borrowed the experience of other loyal jurisdictions. Therefore, the FATF recommendations, which are already in force in many countries of the world, are now in full swing.

Financial Action Task Force on Money Laundering (FATF)(English)Financial Action Task Force on Money Laundering (FATF) is an intergovernmental organization that develops global standards in the field of combating money laundering and the financing of terrorism, and also assesses the compliance of national systems with these standards.

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Legislative status

There is a legal framework. Free traffic is allowed. Government attitude is positive

Basic documents and definition of cryptocurrencies

In June 2020, the Verkhovna RadaUkraine has registered a bill “On Virtual Assets”, which proposes to classify cryptocurrencies as regulated assets. On December 2, 2020, the Verkhovna Rada of Ukraine finally approved the bill.

The document itself introduces into the legislative fieldthe concept of virtual assets, which are represented by a kind of property. Additionally, according to the FATF definition and EU directive 2018/843, BA is a “digital expression of value”. Well, the EU directive is quite appropriate. Also, the International Financial Reporting Standards (IFRS) as of June 2019 classify cryptocurrencies as intangible assets.

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Restrictions and taxes on the use of cryptocurrencies

The legislation does not provide for a general ban on the issuance, mining, ownership or trading of cryptocurrencies.

Despite the general loyalty to decentralizedcrypto in Ukraine - the bill has its costs and will make all cryptocurrency wallets illegal if they are not registered with the ministry.

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In November 2019, Ukraine introduced criminal liability for illegal enrichment through cryptocurrencies.

President of Ukraine Volodymyr Zelenskyy signed a law to reinstate criminal liability for illegal enrichment among civil servants and officials.

Thus, the acquisition of assets by officials,the cost of which exceeds their legal income by more than 6.5 thousand non-taxable minimum incomes of citizens, is punishable by imprisonment for up to 10 years with a ban on holding certain positions for up to three years.

Assets include cash, funds in bank accounts, property andcryptocurrency.

The limitation period for such cases will be four years.

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In early March 2020, the Ukrainian National Agency for the Prevention of Corruption (NAPC) published the rules for declaring cryptocurrencies.

According to the conclusion of the NAPC, the declarant mustindicate the cryptocurrencies owned by him or his family members in the "Intangible Assets" section. The document must contain the name of the asset, the date of the last purchase of the cryptocurrency, the number and total value of coins belonging to the declarant or a member of his family as of the last day of the reporting period.

The cost of the cryptocurrency must be indicated in the monetary unit of Ukraine at the exchange rate of the National Bank of Ukraine in effect on the last day of the reporting period of the declaration.

In 2020, income declarations must be submitted at the place of residence by April 30. In addition to officials, declarations must be submittedself-employed professionals, not registered as private entrepreneurs, and people with foreign income.

Administrative and criminal prosecutions for cryptocurrency ownership

Ukrainian deputies have submitted to the Verkhovna Rada a draft law that regulates the mechanism for the seizure of cryptocurrency obtained as a result of illegal activities.

According to the document, virtual assetsplanned to be classified as electronic evidence of an offense. Cryptocurrencies that have been involved in criminal activities are confiscated unless the owner was unaware of their illegal use. If the owner is not established, then the virtual assets become the property of the state.

If it is impossible to confiscate virtual assets, the legality of the acquisition of which has not been confirmed, the convict is obliged to reimburse their value in fiat equivalent.

The dispute about the ownership of virtual assets is resolved through civil proceedings.

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Limits and taxes on cryptocurrency trading

Individual tax consultation of the State Tax Servicein the Dnipropetrovsk region notes that cryptocurrency may be subject to taxation. Income of a resident individual from the sale of cryptocurrency is subject to personal income tax and military duty on a general basis.

Administrative and Criminal Prosecutions for Cryptocurrency Trading

Consequences of the adoption of new legislationwill affect an ordinary citizen in the event that his assets are on an account with a cryptocurrency exchange. If it has not passed the verification, then the exchange will require its passage, and otherwise it may block the account (which is already practiced). In addition, now you will need to be more careful about your transactions on the exchange, because any transaction may seem suspicious to the exchange. The exchange may require additional documents (withdraw money).

The verification procedure is mandatory if the user's transactions on the exchange exceed UAH 30,000. Although, in practice, stricter restrictions are not excluded.

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Additionally, according to the statement of the Minister of FinanceUkraine, regulators are going to track cryptocurrency transactions worth more than $ 1200. Suspicious transactions will be blocked, and crypto assets will be confiscated.

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Restrictions and taxes on businesses related to cryptocurrencies

The law will oblige custodial cryptocurrency servicesand exchanges must be registered with the Ministry of Digital Transformation of Ukraine. Companies must have jurisdiction in Ukraine and the authorized capital, the size of which ranges from zero to € 20,000.

Additionally, such firms will have to ensure compliance with anti-money laundering, AML and KYC (Know Your Customer) requirements.

Registration is provided only for exchanges, exchangers and custodians. All other market participants are not required to register, but they can also do this based on their business interests.

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Additionally, the legislator has defined the providers of services related to the circulation of virtual assets - now these are not only cryptocurrency exchanges and exchangers, but also companies that conduct ICOs.

For providers of turnover-related servicesvirtual assets, it is necessary to provide special reports in the prescribed form to Financial Monitoring about the conduct of a transaction exceeding UAH 400,000, if there is reason to believe that these transactions: are carried out by politically exposed persons, carried out by a party that is registered inone of the countries on the sanctions list, have the purpose of transferring funds abroad or are carried out using cash.

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And do not forget that an additional bill is supposed to oblige providers to disclose data on user activity on the Internet.

Operators are required at their own expenseto establish the technical means necessary for conducting covert investigative actions and access to information about communication, subscriber, receipt and transmission route of Internet services, their duration and content.

Similar requirements for telecom operators in the Russian Federation are applied under the so-called Yarovaya Law, which entered into force on July 1, 2018.

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Administrative and Criminal Prosecutions for Cryptocurrency Business

For the past few years, miners were considered criminals, they were hunted down, they tracked apartments and warehouses, in which they recorded a large amount of electricity consumption.

The confiscated mining farms fell into the hands of representatives of law enforcement agencies and it was almost impossible to return them. Bitcoins often disappeared after searches.

And so far, even in the new law, the topic of mining (generation) of virtual assets has not yet been touched upon in the bill, but this issue is being actively studied.

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Belarus

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While Russia introduces new bans on the use ofcryptocurrencies - neighboring Belarus has long passed a law that in fact legalizes cryptocurrency. Yes, oddly enough, but one of the first countries to officially recognize the cryptocurrency, back in 2017, was the rather conservative Belarus. They also openly introduced smart contracts on the blockchain and reduced taxes by several times (within the High Technology Park).

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Legislative status

There is a legal framework. Free traffic is allowed. Government attitude is positive

Basic documents and definition of cryptocurrencies

The key document was decree No. 8 "On the developmentdigital economy ”, which entered into force on March 28, 2018. Basically, the decree covers aspects related to the Hi-Tech Park - it's like the analogue of Silicon Valley in the United States.

An exemplary decree legalized cryptocurrency exchanges,mining, smart contract, blockchain, tokens, etc. Operations with tokens (mining, storage in accounts, purchase, exchange, bequest) from the date of the adoption of the Decree are exempt from income tax and VAT until January 1, 2023.

The decree actually allows buying, selling andexchange cryptocurrencies, work as an operator of a crypto platform or an operator of an exchange office, as well as in other areas in the field of blockchain and cryptocurrencies.

A resident of the Hi-Tech Park isa person who is engaged in activities related to information systems and software - the exact list of activities is provided for by law. The main advantage of obtaining the status of a resident of the Park of High Technologies is state benefits, in particular, tax benefits. At the same time, a permanent presence in the Park is not required to obtain the status of a resident.

It is worth noting that in October 2020 alone, the number of Park residents reached 969 companies employing about 65,000 employees.

According to one of the Belarusian experts:

“If Telegram issued its token here in Belarus, it would not have such problems. Yes, he would have no access to the American market, but at least the ICO would have taken place. "

True, it is difficult to judge whether Pavel Durov made the wrong door and the possible results of the failed ICO.

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Restrictions and taxes on the use of cryptocurrencies

Legal entities and individuals can freely own tokens and store them in virtual wallets. There are no taxes on ownership of cryptocurrencies without receiving actual income.

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Administrative and criminal prosecutions for cryptocurrency ownership

The state authorities in Belarus want lawmakers to allow them to seize cryptocurrencies from criminals. The Investigative Committee of the Republic of Belarus plans to support this initiative.

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Limits and taxes on cryptocurrency trading

From 28 March 2018 to 1 January 2023income of individuals from mining, acquisition (including as a gift), alienation of digital signs (tokens) for Belarusian rubles, foreign currency, electronic money and (or) exchange for other digital signs (tokens) are not recognized as an object of taxation with income tax, regardless of when they were received, including if they were received before the entry into force of the special regulation.

It is important to note that mining and trading,carried out by individuals independently, that is, without the involvement of other individuals under labor and (or) civil contracts, the legislation does not consider it as entrepreneurial activity. As a result, you do not need to register as an individual entrepreneur to carry out this activity.

In other words: Residents of Belarus do not pay taxes from the use of cryptocurrencies until January 1, 2023.

But do not forget that the National BankBelarus has issued addenda to the instruction on the requirements "to the clauses regulating the circulation of tokens." The document identifies a total of 45 signs of suspicious transactions.

In particular:

• Carrying out transactions in the amount close to or exceeding 24,500 bp. rubles related to the purchase or sale of digital tokens
• Carrying out operations for the purchase and sale of tokens from non-residents of the Park of High Technologies.

Administrative and Criminal Prosecutions for Cryptocurrency Trading

No precedents known

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Restrictions and taxes on businesses related to cryptocurrencies

Special legal regime for Park Hightechnologies can be extended until January 1, 2049. Under the new rules, the list of promising areas of activity for resident companies is unlimited and can be expanded by the decision of the supervisory board.

High-Tech Park residents canconclude option agreements, convertible loan agreements, non-competition agreements with employees, agreements with liability for poaching employees, irrevocable powers of attorney and sign other documents common in international practice.

Foreign exchange transactions regime for residentsThe Hi-Tech Park has been simplified, which includes the introduction of a notification procedure for conducting foreign exchange transactions, the abolition of the mandatory written form of foreign trade transactions, the introduction of confirmation of the transactions performed by primary documents drawn up unilaterally. Also, Decree No. 8 removes restrictions for resident companies on transactions with electronic money and allows the opening of accounts in foreign banks and financial institutions without obtaining permission from the National Bank of the Republic of Belarus.

The procedure for hiring qualified foreignspecialists by companies-residents of the Park of High Technologies has also been simplified, which includes an easier procedure for obtaining a work permit, as well as a visa-free regime for founders and employees of resident companies with a period of continuous stay of up to 180 days.

A legal basis for the circulation of cryptocurrencies has been created,so that the resident companies of the Park of High Technologies can provide services for the exchange of cryptocurrencies and attract funding through ICO. Legal entities can create and place their own tokens, as well as carry out operations through cryptocurrency exchanges and exchangers. The peculiarity of the introduced regulation is that all operations will have to be carried out through the resident companies of the Park of High Technologies.

Main documents:

• Decision of the HTP Supervisory Board
• Requirements for applicants
• Requirements for the crypto platform operator
• Requirements for a cryptocurrency exchange operator
• Requirements for an ICO organizer
• Requirements for the rules of internal control

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For companies-residents of the Park of High Technologiesthere are benefits, including the abolition of income tax (instead of which a contribution of 1% of gross revenue in favor of the park administration is applied), a reduced to 9% income tax rate and the calculation of contributions to the Social Security Fund according to the national average, and not according to the actual indicator wages.

In turn, foreign companies thatprovide marketing, advertising, consulting and other services to the residents of the Park of High Technologies are exempted from paying value-added tax, as well as from paying income tax, which allows promoting IT products of Belarusian companies in foreign markets. To stimulate investment, the decree also exempts foreign companies from tax on income from the disposal of shares, shares in the authorized capital and shares in the property of residents of the High-Tech Park (subject to continuous ownership of them for at least 365 days).

Administrative and Criminal Prosecutions for Cryptocurrency Business

No precedents known

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To be continued…

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In the next part, a number of European countries will be considered, both within the EU and outside its jurisdiction.

 

Review author: Ne-Standart supported by BitNovosti.com