Ukraine taps Belarus exchange to learn about crypto regulation

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The government in Ukraine has signed an agreement with a cryptocurrency exchange in Belarus, in a move designed to help them learn lessons from crypto regulation in Belarus.

The Ukrainian Ministry of Digital Transformation, which was set up in August, announced it had signed a Memorandum of Understanding with Currency.com, a Belarus based cryptocurrency exchange. The first regulated exchange in the Commonwealth of Independent States countries, Currency.com provides access to cryptocurrencies, tokenized assets and fiat currency.

The deal will see the exchange cooperate with the Ukrainian government on areas of regulation around digital assets, including IT legislation, as the government looks to develop its own approach to regulating the sector.

Ukraine is reportedly interested in adopting much of the Belarusian system of regulating cryptocurrency, and is in the process of devising its own regulatory framework for crypto exchanges and transactions.

The deal is only the latest to be signed by the Ministry of Digital Transformation, which has already been active in shaping the government’s approach to crypto. A similar deal was struck with Binance exchange earlier this year, with the Ministry soliciting as much help as it can find in shaping their new legal approach.

Deputy Minister of Digital Transformation Alexander Bornyakov said there were lessons to be learned from the experience of Belarus in regulating the crypto sector.

The more we study the experience of this country, the deeper we understand how much work has been done and what results have brought it. We are pleased to work with the Currency.com team for the development of Ukrainian legislation.

Belarus has been among the most proactive countries in the region in embracing cryptocurrency businesses, providing incentives and tax breaks for firms operating within the sector for the last two years.

Ahead of the launch of the incentives package in 2017, Belarus President Alexander Lukashenko said the country was set to become a regional center for the cryptocurrency sector: “Belarus will become the first government in the world that opens wide opportunities for the use of blockchain technology. We have every chance of becoming a regional center in this area.”