Belarusian citizens will have to pay hefty fines for organizing illegal online cryptocurrency exchanges. Law enforcement authorities in the country, where certain crypto activities are legal, do not plan to impose penalties other than administrative measures.
Cryptocurrency Trader Tries to Challenge Fine in Belarusian Court
Cryptocurrency trader challenges fine in Belarusian court.
The Supreme Court of the Republic of Belarus has rejected a Belarusian’s appeal against a lower court ruling ordering him to pay the state 2.7 million Belarusian rubles (about $1 million) for trading digital assets outside the law.
The man, identified only by his initials “A,” is accused of establishing an online cryptocurrency exchange using Telegram Messenger in January 2021. He allegedly earned 5.4 million rubles as income from his illegal activities.
According to apostingby the Belarusian Ministry of Taxation and Customs cited by crypto news outlet Bits.media, investigators were able to trace his transactions and submit the evidence they collected to the judiciary. A fine was imposed by the Economic Court in Minsk.
The agency believes that the decision to confiscate half of his earnings is fair, given that the court could have ordered him to hand over the full amount. The trader did not dispute the illegality of his business, but was dissatisfied with the size of the fine and decided to file a complaint with the higher court, which upheld the initial ruling.
Belarus, in a decree signed by President Alexander Lukashenko that came into effect in 2018, has made crypto-related legalized activities.
However, the government is pursuing illegal operations with cryptocurrencies. Last May, the head of an investigative committee revealed that the country’s law enforcement agencies managed to seize digital assets related to the crime worth millions of US dollars.
In August, Belarusian authorities issued an international arrest warrant for the owner of the country’s “largest crypto exchange,” Bitok.me, after a two-year investigation against Vladislav Kuchinsky and three of his accomplices, who were charged with massive tax evasion.
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