The U.S. Secretary of Commerce has announced an agreement with Nvidia’s CEO and former President Trump concerning H200 chips. While Howard Lutnick talks about anticipating further rate cuts, the cryptocurrency markets are awaiting the opening of U.S. markets. Amid these developments, Belarus has unveiled a new decree targeting cryptocurrency regulations.
Restrictions on Cryptocurrency
Belarus has tightened its regulations on cryptocurrency trading, banning individuals from trading outside domestic exchanges and brokers. Signed by President Alexander Lukashenko, the decree aims to prevent illegal activities within the digital currency space.
This decree impacts residents and enterprises within the High Technology Park (HTP), a special economic zone for IT innovation, affecting a significant number of crypto investors.
Although foreign platforms are not directly banned, the decree introduces strict rules for peer-to-peer transactions within Belarus.
Reasons Behind the Move
A major reason many countries restrict global platforms is to limit capital outflows. Given that most transactions in the country occur on authorized platforms, this decision is unlikely to significantly impact crypto investors. However, the move serves as an indication of the severity of the measures governments are willing to implement.
India, particularly in 2021, reported billions of dollars being transferred overseas by local exchanges like WazirX, prompting increased scrutiny. However, limiting global exchanges and centralizing cryptocurrency transactions abroad does not benefit investors. Trapped within local exchanges, investors face limited liquidity, exposing them to abnormal price fluctuations often resulting in losses.
Contrary to Belarus’s steps, Russia, viewed as a test bed for its economic and regulatory policies, has its largest banks working to offer cryptocurrency services. Moreover, the Russian Central Bank recently signaled a potential easing of its stringent stance on cryptocurrencies.