Faced with the rise in cryptocurrency-related crime, Belarus has decided to take steps to combat the phenomenon. The country's Ministry of Foreign Affairs has announced a bill to ban peer-to-peer (P2P) crypto-currency transactions. This decision raises questions about the future of cryptocurrencies in the country and the repercussions this could have on the global market.
The reasons behind the ban on P2P transactions
The Belarusian government justifies this measure by the increase in cybercrime linked to P2P transactions. According to the Ministry of Foreign Affairs, nearly 30 cases of illegal tasks associated with illegal crypto-currency replacement companies have been prevented since the beginning of the year. These illicit activities reportedly generated around 22,8.7 rubles (about $24,000) in illegal profits. Peer-to-peer crypto-currency companies are particularly prized by fraudsters because of their usefulness for cashing in and converting funds.
P2P exchanges at the heart of Bitcoin's original idea
As a reminder, P2P exchange is part of the original idea and essence of Bitcoin, as described in its white paper by its creator, Satoshi Nakamoto. By choosing to ban peer-to-peer transactions, Belarus is moving away from this founding idea, and could call into question the development of cryptocurrencies on its territory.
The consequences for the cryptocurrency market in Belarus
The ban on P2P exchanges could have several consequences for the cryptocurrency market in Belarus :
- Increased regulation: this move heralds a tightening of Belarusian cryptocurrency legislation, with potentially more restrictions to come.
- A brake on the development of crypto-currencies: by restricting the possibilities for peer-to-peer crypto-currency trading, the Belarusian government could slow down their adoption and development in the country.
- Repercussions on the global market: while Belarus is certainly not a major player on the cryptocurrency market, this decision could encourage other countries to follow suit and tighten their legislation.
The Nigerian case: a ban that encourages the population to buy cryptocurrencies
As proof of this, Nigeria has banned cryptocurrencies in 2021, and Bitcoin's rising price is increasingly attracting its population. This situation shows that banning cryptocurrencies can sometimes have the opposite effect to that intended, and encourage citizens to turn to these digital assets.
What does the future hold for cryptocurrencies in Belarus?
It's still too early to predict with any certainty what the exact consequences of this ban will be for the cryptocurrency market in Belarus. However, it is clear that this decision marks a turning point in the regulation of crypto-assets in the country.
Belarusian authorities will have to strike a balance between fighting crime and developing innovative financial technologies, without undermining the rise of cryptocurrencies. By choosing to ban P2P transactions, Belarus is taking a risk and moving away from the original idea behind Bitcoin. It is now up to industry players and the authorities to work together to ensure the healthy and secure development of cryptocurrencies in the country.
