Belarus is using its low taxes as a way to draw in cryptocurrency miners in order to boost its economy. But will worldwide speculators put cash into a nation frequently alluded to as “Europe’s final dictatorship”?
President Alexander Lukashenko, signed a decree in 2017, to facilitate an environment which encourages high-tech businesses, including crypto mining. The decree, implemented in 2018, was the first of its kind to recognized smart contracts as legally enforceable.
In September 2021 Belarus took this a step forward by introducing special electricity tariffs for crypto miners; thus paving the way for venture reserves to purchase crypto.
Denis Aleinikov, a senior partner at Aleinikov & Partners, said “There aren’t many points of growth for our economy today, the government has to do something brave and unusual.”
Aleinikov helped draft the decree which enables businesses in Minsk’s High-Tech Park (HTP) to benefit from corporate tax exemptions on profits. According Aleinikov’s partner, Dmitry Matveyev, they instead, pay just 1% of their gross revenue. Companies can get admitted into the High-Tech Park (HTP) within two months of documentation submission.
Photo by Reiseuhu