Belarusian President Alexander Lukashenko has signed a decree establishing a legal framework for cryptobanks in the country.

The decree, issued on Friday, is intended to establish Belarus as a hub for financial technology, specifying that cryptobanks are joint-stock companies permitted to integrate traditional banking and payment services with activities involving digital tokens.

Under the new regulations, only companies located in Belarus’s High-Tech Park (HTP) and registered with the National Bank are eligible to operate as cryptobanks. HTP provides a special economic zone with distinct tax and legal benefits.

These institutions must also follow regulations for non-bank credit and financial institutions and adhere to decisions of the High-Tech Park Supervisory Board.

Belarus was among the first countries to create a legal framework for crypto activities, including smart contracts, mining, and exchanges. Under a 2017 decree, mining and trading were declared tax-free for individuals, eliminating the need to declare crypto income.