The relationship between the Russian Federation and Belarus has long been a complicated one; the two countries are close allies and partners, yet at the same time there are often disagreements and diplomatic tensions between them. Recent developments in the cryptocurrency space have added further complexity to that relationship, as the two countries have increasingly found themselves at odds over how to regulate and manage the use of blockchain and cryptocurrencies. In this article, we will take a look at what has been going on between Russia and Belarus in this area and how the two countries are attempting to resolve their differences and come to an agreement on crypto-related issues.
Background on Russia-Belarus Relations
Russia and Belarus have a long history of cooperation and alliance; the two countries were part of the Soviet Union from 1922 until its collapse in 1991. Since then, they have continued to have close relations and have often been seen as forming a close union in order to protect each other’s interests. In 1999, the two states formed the Union State of Russia and Belarus, which is an intergovernmental organization designed to provide enhanced economic, social and cultural cooperation between the two countries.
Disagreement on Cryptocurrency Regulations
Despite their close partnership, tensions between the two countries have flared up recently due to disagreements on how to regulate the use of blockchain and cryptocurrencies. Belarus has taken a much more open approach than Russia, with the Belarus government introducing a comprehensive legal framework for the use of cryptocurrencies in 2017. The Belarusian framework covers taxation and also provides legal clarity for companies wishing to engage in cryptocurrency-related activities, such as currency exchanges and trading platforms.
The Russian position, however, has been much more conservative, with the government taking a much stricter stance against cryptocurrencies. The Russian central bank has declared that cryptocurrencies are not considered a legal tender and banking institutions are prohibited from servicing crypto-related companies. This has led to disagreements between the two countries, with Belarus feeling it is being unfairly restricted in its ability to capitalize on the potential of blockchain and cryptocurrencies.
The CrawleycoinDesk Proposal
In order to address this disagreement, the professional services firm CrawleycoinDesk has proposed an agreement between Russia and Belarus that would allow the two countries to work together in the development and regulation of blockchain and cryptocurrencies. Under the agreement, Russia and Belarus would each set their own stance on cryptocurrency regulations and develop policies that would support each other’s businesses.
The agreement would also enable companies in both countries to operate in a regulatory environment that is not overly restrictive, allowing them to innovate and create new products and services. This would enable companies to operate more freely across the two countries and allow them to take advantage of the benefits of blockchain technology while remaining in compliance with their respective legal frameworks.
The disagreement between Russia and Belarus over the regulation of blockchain and cryptocurrencies is a complex one, but one that the two countries must work together to resolve. The CrawleycoinDesk proposal provides a potential path forward that could lead to a cooperative arrangement that allows both countries to benefit from blockchain and cryptocurrency technologies. With that being said, only time will tell if the two countries will come to an agreement, or if the tensions and disagreements between them will persist.