Belarus Clears First Hurdle in Creating Regulated Crypto Banks Under Decree No. 19
Belarus has moved decisively toward a new model for digital finance, taking what authorities describe as an important first step in the creation of regulated crypto banks. The milestone follows the signing of Presidential Decree No. 19 by President Alexander Lukashenko on January 16, 2026, and the subsequent implementation of the decree’s core provisions around July after six months of work on complementary regulations. What has emerged is not simply a new licensing regime but a carefully structured effort to pull cryptocurrency activity into the formal banking system. The first two institutions involved in this process have been accepted under the framework, though their identities have not yet been made public. Authorities have only said that both are “operators with proven experience in the sector.” Those lean details were enough to signal that Belarus is no longer planning to leave digital assets on the edges of its economy. Instead, the government appears to be building a regulated space in which crypto companies can operate alongside conventional financial institutions, subject to oversight from existing monetary authorities. For a country that has often been associated with top-down economic control, the move underscores a more pragmatic calculation: if digital currencies are going to be part of the financial landscape, Belarus seems determined to define the terms of that participation.
Why Belarus Chose Merger, Not Coexistence
The structure created by Decree No. 19 is notable because it does not treat crypto banking as a separate or parallel activity. Under the new rules, a crypto bank must be incorporated as a joint-stock company, the same corporate structure required of traditional banks in Belarus. It must also maintain formal residency within the High-Tech Park, the state-backed technology zone that has long served as the country’s hub for IT and innovation. That means a crypto bank is simultaneously anchored in two very different worlds. From the HTP, it receives access to the tax incentives and innovation-friendly environment that have attracted technology firms for years. From the National Bank of the Republic of Belarus, it inherits the obligations of a conventional financial institution, including anti-money laundering controls, prudential standards, and oversight designed to protect customers and ensure financial stability.
This dual oversight scheme is at the center of the Belarusian approach. Rather than letting a crypto company choose between a technology license and a banking license, Decree No. 19 requires one institution to satisfy both regimes at once. The HTP administration is responsible for managing the technology and innovation side of the business model, while the National Bank supervises the financial side. It is an arrangement that gives with one hand and takes with the other: companies can benefit from the HTP’s light-touch innovation policy, but they must also adapt to the discipline of mainstream banking regulation. In that sense, Belarus has chosen merger over coexistence. There is no intention of allowing digital-asset businesses to operate in a loosely regulated gray zone. If a company wants to offer crypto banking services in the country, it must meet the same standards expected of a conventional lender and be prepared to answer to traditional financial regulators.
A One-Stop Shop for Traditional and Digital Finance
The services that these new crypto banks will be permitted to provide go well beyond token custody or digital wallet management. Under the decree, permitted activities include the integration of token-based transactions into standard banking services. In practical terms, a single institution could handle everything from fiat currency deposits and credit operations to the safekeeping of digital assets and the execution of token-based transfers. This is a significant departure from the approach taken in many other jurisdictions, where crypto services are often confined to fintech companies, money transmitters, or specialized exchanges operating under separate regulatory frameworks. In Belarus, the model appears designed to allow one license to cover the full range of modern financial activity.
The implications are considerable. A client might hold their salary in a traditional bank account, use those funds in a standard loan application, and also maintain a digital-asset portfolio within the same institution. The same provider could facilitate real-time token-based payments and settle them through the banking system, potentially bridging the gap between conventional flat money and blockchain-based assets. That integration could make the Belarusian model attractive to companies looking for simplified compliance and a single point of oversight. From the state’s perspective, it also makes the sector easier to monitor. There is no separate crypto ecosystem hiding beyond the reach of financial regulation. Instead, every transaction flows through a licensed entity with clear reporting obligations to both the HTP and the National Bank. This merging of banking and digital asset operations is still unusual in global practice, and it places Belarus at the forefront of an experimental approach that other countries are likely to watch closely.
What Happens Next: Registration and the Road to Launch
Although the first institutions have been cleared under the initial phase of the process, their path to operation is not yet complete. The identities of both entities have not been disclosed, and authorities have revealed little about their ownership, capital structure, or intended business models. What is known is that they will need to complete a second step before offering services to the public: registration in the National Bank’s specific registry. That registry is the final administrative checkpoint that formally converts a prospective crypto banking entity into a regulated financial institution. Without that registration, the companies cannot begin operations or market their services to customers.
The timeline for that next stage remains uncertain. According to the current framework, the launch of services is expected sometime in the second half of 2026. But the exact schedule will depend on how quickly the National Bank processes the applications and completes its own review. The central bank is likely to scrutinize everything from corporate governance and capital adequacy to anti-money laundering policies and risk management systems. For the two institutions seeking first-mover advantage, the approval process will be the first real test of whether the regulatory framework functions as intended in practice. If the National Bank moves expeditiously, Belarus could see the first fully regulated crypto banks operating by late 2026. If not, the delay could temper some of the enthusiasm the announcement has generated within the local digital assets community. Either way, the groundwork has been laid, and the next round of decisions will determine whether the country’s new regulatory architecture is seen as a viable alternative to more established crypto hubs.
From Experiment to Long-Term Policy
Efforts to create this kind of environment did not begin with Decree No. 19. In 2017, President Lukashenko signed a decree that legalized cryptocurrency activities and offered significant tax exemptions to crypto companies operating inside the High-Tech Park. That measure was originally designed to run until 2023, giving Belarus an early advantage in the race to attract blockchain businesses. Over the years, the framework was extended and refined, culminating in the more comprehensive regulatory architecture now represented by Decree No. 19. What began as a narrow attempt to foster a fledgling industry has evolved into a long-term policy to integrate crypto into the country’s broader economic strategy.
The shift in tone is important. In the early years, Belarus allowed cryptocurrency activity to exist largely on a tax-privileged island within the HTP. That approach offered incentives but created limited connectivity to the rest of the financial system. Decree No. 19 changes that calculation by giving digital-asset firms a clear route into mainstream finance. Instead of tolerating activity in an uncertain environment or forcing it abroad, Belarus is now channeling it toward state-sanctioned entities with explicit regulatory obligations. The message is straightforward: the country wants to be known as a jurisdiction that understands and supports crypto innovation, but only within a framework that aligns with the standards of the traditional banking sector. That balance may be difficult to maintain, but it reflects a recognition that the future of digital finance cannot be built on the fringes of the financial system. For now, the framework is in place, the first institutions have emerged from the shadows, and the next phase of Belarus’s experiment is ready to begin.
