Belarus Plans to Ban P2P Crypto Transactions over Digital Fraud

<p>Belarus is planning to ban cryptocurrency exchange
transactions between individuals due to an increase in crime. The
country is also planning to implement procedures such as those applicable to
foreign currencies which make it impossible to withdraw money received from
illegal activities.</p><p>According to an
announcement by the Belarusian Ministry of Foreign Affairs, local
authorities have intercepted almost 30 fraudulent activities involving illegal crypto <a href="https://www.financemagnates.com/terms/e/exchange/">exchange</a> services since the start of the year. The value of the transactions is
reportedly about 22 million Belarusian rubles ($8 million).</p><p>Rising Demand among
Fraudsters</p><p>Commenting via Telegram, Alexander Ringevich,
the Head of the Main Directorate at the Belarusian Ministry of Internal
Affairs, said in a <a href="https://t.me/pressmvd/8643" target="_blank" rel="follow">statement</a> translated from the Belarussian:
"Such services are in demand among fraudsters who cash out and convert
stolen funds, transfer money to organizers or to the participants of criminal schemes."</p><p>However, the Eastern
European country will continue to permit cryptocurrency transactions exchanged
through the platforms registered with the Belarus Hi-tech Park (HTP), a tax
and legal regime for businesses conducting IT business in the <a href="https://www.financemagnates.com/tag/belarus/" target="_blank" rel="follow">country</a>. Such an arrangement, according to the regulator,
would enhance transparency in the digital asset sector. </p><p>"In such
conditions, it will simply become unprofitable for information technology
fraudsters to operate in Belarus," Ringevich added. "For the sake of transparency and control, citizens will be
allowed to conduct such financial transactions only through the HTP exchanges."</p><p>The rise in financial
scams, especially those related to cryptocurrencies, was recently corroborated
by the UK's Financial Ombudsman Service (FOS) in a <a href="https://www.financemagnates.com/fintech/uk-financial-ombudsman-reports-increase-in-hybrid-scams/" target="_blank" rel="follow">report</a> by <a href="https://www.financemagnates.com/" target="_blank" rel="follow">Finance Magnates</a>. The FOS said there was an
increase in the reported cases involving more than one scam. </p><p>Belarus Changes Tune</p><p>The latest development contradicts Belarus' past stance on the
adoption of cryptocurrency. Last year, the country's President, Alexander
Lukashenko, signed a decree to support the free circulation of <a href="https://www.financemagnates.com/terms/c/cryptocurrencies/">cryptocurrencies</a>.
The law provided a legal framework for the HTP to prevent using
cryptocurrencies for illegal activities.</p><p>Additionally,
in further support of cryptocurrencies, including digital asset trading and
mining, in 2021, President Lukashenko called for <a href="https://www.financemagnates.com/cryptocurrency/education-centre/crypto-mining-environmental-concerns-and-the-push-for-sustainable-solutions/" target="_blank" rel="follow">crypto
mining</a> using the extra
power resources in the country. Previously Lukashenko proposed the use of extra nuclear power energy to mine and sell
cryptocurrencies in Belarus.</p>

This article was written by Jared Kirui at www.financemagnates.com.