The global crypto community doubted the Belarusian government's ability to ban P2P.
Belarus is reportedly looking to clamp down on Peer to Peer (P2P) cryptocurrency transactions, setting off ripples in the crypto community.
In an official announcement on July 2nd, Belarus' Ministry of Foreign Affairs disclosed that they are currently drafting legal modifications to ban P2P cryptocurrency transactions.
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The ministry justified the move by citing the growing cybercrime rate in the country. Authorities pointed out that since January 2023, local prosecutors have quelled the activities of 27 citizens who allegedly offered "illegal crypto exchange services."
The collective illegal earnings of these citizens amounted to almost 22 million Belarusian rubles (around $8.7 million).
The ministry underscored the increasing use of crypto P2P services by criminals to cash out, convert stolen funds, and transfer money to organizers or participants in criminal schemes. To ensure transparency and control, the ministry stated:
The MFA is working on legislative innovations that prohibit crypto exchange transactions between individuals. For transparency and control, citizens will be allowed to conduct such financial transactions only through the HTP exchanges.
The government sees this move as a method to eradicate such illegitimate activities. Hence, individuals will be able to trade cryptocurrencies via exchanges registered with Belarus Hi-Tech Park (HTP).
Emulating the approach used for foreign currency exchanges, the government also plans to introduce measures that will make it "impossible to withdraw money obtained from illegal activity." In their words:
Under such conditions, it will simply become unprofitable for information technology fraudsters to operate in Belarus.
The announcement drew reactions from the global crypto community, many of whom have doubted the government's ability to enforce a ban on P2P cryptocurrency trading. "Good luck enforcing it," one observer commented on Twitter.
This move by Belarus differs from the country's earlier stance on cryptocurrency. In 2022, Belarusian President Alexander Lukashenko ratified a decree formally backing the free circulation of cryptocurrencies, such as Bitcoin (BTC).
