Government and HTP Administration: About Decree No. 8

27 March 2018
The Decree of the President of the Republic of Belarus of December 21, 2017 No. 8 "On Digital Economy Development ", aimed at further development of the Hi-Tech Park, the innovative sphere and creation of modern digital economy in the country, is coming into force on March 28, 2018.

This regulatory legal act extends the validity of a special legal regime of the Hi-Tech Park till January 1, 2049 taking into account a number of innovations.

So, the list of activities of the residents of the Park is significantly expanded up to 36 possible types of activities. There is a set of norms, including taxation, aimed at developing the product model in the country.

The HTP residents will be able to use the instruments for the implementation of investment transactions that became an international standard: for example, convertible loan agreement, option, indemnity agreement, as well as smart contracts – a new way of contract execution.

The procedures in foreign trade and the recruitment of foreign specialists by the residents of the Park are significantly simplified, measures to develop IT education in HTP are envisaged.

In addition, the Decree resolves many issues arising from more than 10 years of implementation of legislation in practice on the Hi-Tech Park.

The very adoption of the Decree determined the record growth of those wishing to join the Hi-Tech Park. The sphere of their technological competence is artificial intelligence, machine learning, Internet of things, augmented reality technology.

The innovations of Decree No. 8 also include fundamentally new legal relationship on the use of blockchain technologies and digital signs (tokens) both for our country and for most foreign states.

In the development of Decree No. 8, for the purpose of conducting operations with digital signs (tokens) by banks, the changes were made in the Instruction of the National Bank on the requirements for the rules of internal control of banks, of non-bank financial institutions in the field of preventing the legalization of the proceeds obtained by criminal means, of terrorist financing and spread of weapons of mass destruction.

The Decree No. 16 of March 6, 2018 by the Ministry of Finance of the Republic of Belarus approved the National accounting and reporting standard "Digital Signs (Tokens)".

Activities involving the use of crypto-currencies and other tokens should take place on terms of the implementation of the FATF recommendations on anti-money laundering and counter-terrorism financing.

In order to comply with the legislation when performing activities involving the use of crypto-currencies and other tokens, the business projects of the applicants must provide for comprehensive measures aimed at solving the following set of issues:

∙ ensuring compliance with Belarus' international obligations on anti-money laundering and counter-terrorism financing, implementing the FATF recommendations (including the procedure for identifying customers, etc.);

∙ sufficient guarantees of financial stability of HTP resident -companies exercising relevant activities, measures and procedures for financial coverage of potential risks, reparation of potential damage, other measures to protect the rights and legitimate interests of customers - natural or legal persons;

∙ measures to ensure technological safety - protection from cyberattacks, other unauthorized activities, audit of the information systems in place, the ability to consistently report on transactions and so on;

∙ logistical, personnel and legal measures to properly manage all management and business processes within the relevant activity in accordance with legislation and international best practice;

∙ other reasonably necessary measures depending on the specific type of activity.

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