The Belarusian government is working to amend existing legislation to incentivize investments. Among other things, investment funds will be given access to cryptocurrencies.
The draft is currently in the public consultation phase. In addition to access to cryptocurrencies, the new legislation will allow professional securities market participants to participate in the Belarusian High Tech Park. Another benefit is the extension of the tax grace period. The new draft is planned to be extended until January 2031.
All these initiatives are aimed at creating incentives for the growth of investment funds. The activity of these funds brings many benefits to the economy. However, due to the political unrest in Belarus, they have practically stopped working.
The public consultation period will end on February 11. After that, the new draft can be further amended or adopted.
Revitalizing the economy
The Belarusian economy has been hit hard by the massive protests in 2020. Cryptocurrency companies have also been hit hard by massive internet shutdowns, according to world blockchain news outlet CoinIdol.
The country is now gradually recovering from these events, and the government is trying to use all available means to improve the situation.
Overall, Belarus is known for its friendly approach to blockchain and cryptocurrencies. The government of Alexander Lukashenko actively explores the benefits of these emerging areas. The high profits of the sector may justify the decision to allow investment funds to use cryptocurrencies. Although the market has generally been in the red in recent months, many analysts see this as an excellent opportunity to buy low and make significant long-term gains.