Lukashenko Signs Framework for Belarus's Regulated Cryptobanks Initiative

Recently, Belarus took a major step toward integrating digital assets into its mainstream financial system when President Alexander Lukashenko signed Decree No. 19, establishing a comprehensive legal framework for cryptobanks. This move marks a significant shift in how the nation approaches cryptocurrency—not as a separate, unregulated sector, but as a controlled component of the state’s broader financial infrastructure. The decree represents Lukashenko’s vision of balancing innovation with centralized oversight, particularly as international sanctions intensify pressure on Belarus to develop alternative financial channels.

Understanding the Cryptobank Model Under Lukashenko’s Decree

The new framework redefines cryptobanks as joint-stock companies authorized to blend multiple financial services into a single regulated entity. These institutions can operate across three core domains: token-based operations, traditional banking services, and payment processing. Rather than creating a parallel crypto ecosystem, Lukashenko’s decree deliberately embeds digital asset activity within Belarus’s existing regulatory apparatus, ensuring all crypto-related operations flow through state-supervised channels.

To obtain a cryptobank license, companies must meet two critical requirements. First, they need to secure resident status in Belarus’s Hi-Tech Park, a government-backed innovation zone positioned as the nation’s technology hub. Second, they must register in a dedicated cryptobank registry maintained by the National Bank of the Republic of Belarus. This dual-registration process ensures both the state and the innovation hub have visibility into every cryptobank operation.

Dual Supervision Framework: How Belarus Maintains Control

Cryptobanks operate under a two-tier supervision model that reflects Lukashenko’s strategy of permitting innovation while retaining centralized authority. Financial oversight falls under rules governing non-bank credit institutions and financial service providers, ensuring cryptobanks comply with conventional banking standards. Simultaneously, the Hi-Tech Park’s supervisory board maintains technological and operational oversight, monitoring compliance with digital asset protocols and cybersecurity requirements.

This layered approach allows cryptobanks to develop hybrid financial products—combining traditional banking efficiency with blockchain-based transaction capabilities—while preventing unregulated activity. By keeping all crypto operations within licensed, state-approved entities, the decree eliminates opportunities for gray-market activity and ensures tax compliance.

From Sanctions Pressure to Crypto Innovation: Lukashenko’s Strategic Shift

The cryptobank decree didn’t emerge in isolation. In September 2025, Lukashenko publicly called for “clear and transparent rules” for the crypto market, emphasizing that innovation must accompany strict state control. He specifically encouraged domestic banks to explore crypto-based payments, recognizing that digital assets offered Belarus a potential lifeline amid escalating international sanctions that have constrained traditional cross-border financial channels.

However, this openness has limits. In December 2025, Belarusian authorities blocked access to multiple offshore crypto exchanges, citing advertising violations and signaling an aggressive push against the unregulated crypto gray market. The government’s position is clear: crypto activity is welcome—but only when channeled through state-sanctioned institutions like the newly authorized cryptobanks.

Belarus’s Vision: A State-Controlled Crypto and Financial Hub

Through Decree No. 19, Lukashenko is repositioning Belarus as a state-controlled crypto and financial technology hub—a distinction that separates it from jurisdictions offering permissive crypto environments. Digital assets can thrive, but exclusively within clearly defined legal and institutional boundaries. The model reflects a broader geopolitical reality: as sanctions isolate Belarus from Western financial systems, developing indigenous financial innovation capabilities becomes strategically essential.

The decree underscores Lukashenko’s pragmatic approach: embrace technological progress without ceding state control. Cryptobanks can operate, but only with explicit government authorization, constant supervision, and integration into existing financial infrastructure. This ensures Belarus can harness crypto’s efficiency benefits while maintaining the centralized oversight that characterizes Lukashenko’s broader economic governance model.