Decree of the President of the Republic of Belarus on development of digital economy

Decree No. 8 of 21 December 2017, issued by the President of the Republic of Belarus, aims to support the development of the digital economy and innovation through the strengthening of the Park of High Technologies (HTP). The decree extends the special legal regime of the HTP until 1 January 2049, maintaining its extraterritorial principle.

It authorises residents to expand activities into areas such as information technology education, cybersport, AI, and unmanned vehicle systems. The decree introduces a legal framework for the use of blockchain and tokens, granting both legal and natural persons the right to own and conduct transactions with tokens. Legal persons, through HTP residents, may create, issue, and trade tokens, while individuals are allowed to mine, store, exchange, and transfer tokens without it being classified as entrepreneurial activity or subject to declaration.

To facilitate these operations, the decree outlines the requirements for cryptographic platform operators and cryptocurrency exchange operators, including maintaining minimum reserves in Belarusian banks and allowing for a broad range of token-related operations. The transfer of rights via tokens is legally recognised at the moment the transaction is recorded on the blockchain. Projects involving blockchain technologies can also be pursued under public-private partnership models. Until 1 January 2023, the decree offers significant tax incentives: mining, token issuance, and trading by HTP residents are exempt from VAT and profit tax, and individuals are exempt from personal income tax on such activities. Token transactions are not subject to foreign currency control laws, and related activities are exempt from securities and banking regulations. In accounting, tokens are considered assets, and token issuance creates obligations. There is no need for special permits for technical or cryptographic data protection if the systems are developed or used by HTP residents.

The decree enables HTP residents to test new legal mechanisms in civil law. These include convertible loan contracts allowing monetary investments to convert into equity under specific conditions, option contracts and irrevocable offers that can be triggered under agreed circumstances, smart contracts which are legally binding based on program code, and agreements for non-fault-based compensation for losses. The decree also allows contracts that penalise poaching of employees and non-compete agreements valid up to one year post-employment, provided compensation is paid. Parties may stipulate contractual penalties beyond statutory limits, with courts restricted in reducing them unless found clearly exploitative.

Furthermore, HTP residents and their shareholders can establish and govern foreign companies, including those from Belarus. They are also permitted to issue irrevocable powers of attorney for contract execution. Small enterprises operating in cutting-edge technologies may enter convertible loan contracts with foreign investors. The decree requires HTP residents to align with its provisions and provides retroactive legal effect to certain token-related activities predating its enactment. The Council of Ministers and the Ministry of Finance are tasked with harmonising relevant legislation and setting accounting standards within three months. Until such harmonisation is complete, existing laws apply only where they do not contradict the decree. Though temporary, the decree carries full legal force and is to be submitted to the National Assembly for approval under constitutional procedures.