NBB proposes to allow banks issuing and placing tokens in 2021-2024 – draft decree

<p> MINSK, Jun 10 - PrimePress. The National Bank of Belarus (NBB) proposes, as an experiment, to allow banks issuing and placing tokens and make other transactions (operations) with them in 2021-2024. This is provided for by a draft presidential decree formulated by the National Bank. </p> <p>   </p> <p> The draft is aimed at expanding the involvement of banks in the process of digital transformation of the economy. The right to issue and place tokens may be given to ASB Belarusbank JSC, Belagroprombank JSC, Bank Dabrabyt OJSC, Paritetbank OJSC, BPS-Sberbank OJSC, Belgazprombank OJSC, Belvnesheconombank OJSC, BTA Bank CJSC, BSB Bank CJSC, Bank Reshenie CJSC, RRB-Bank CJSC and Belarusian People’s Bank OJSC. End </p> <p>   </p> <p> Proposed banks’ rights </p> <p>   </p> <p> The draft proposes to allow banks to issue, place, acquire, alienate and store their tokens and fulfil obligations thereon; acquire, alienate and store bank tokens, certifying the right to receive the amount of money paid by the bank for the token when it is placed, as well as income in the form interest accrued on the specified amount, or in the form of a particular amount. </p> <p>   </p> <p> Banks will receive the right to acquire, alienate and store tokens of residents of the High-Technology Park (HTP), which act as crypto platform operators, certifying the right to receive the amount of money paid by the bank for the token when it is placed, as well as income in the form interest accrued on the specified amount, or in the form of a particular amount. </p> <p>   </p> <p> Also, banks will be able to acquire, alienate and store tokens of other legal entities of the Republic of Belarus. </p> <p>   </p> <p> The draft decree establishes that banks are entitled to carry out these operations with tokens through an HTP resident in the manner established for legal entities by presidential decree No.8 ‘On Digital Economy Development’ of December 21, 2017. </p> <p>   </p> <p> Rights of HTP residents in operations with tokens </p> <p>   </p> <p> The draft establishes that HTP residents engaged in token-related services, including their promotion and consultancy, may render services to banks related to transactions (operations) with tokens, including the fulfillment of obligations arising from issuing and placement of bank tokens. </p> <p>   </p> <p> Legal entities and individuals (including individual entrepreneurs) who are residents of Belarus will be entitled to make transactions (operations) with bank tokens through an HTP resident engaged in related operations. </p> <p>   </p> <p> The HTP resident, which places bank tokens and provides the bank with services related to the fulfillment of obligations on the bank tokens placed, accumulates in the special current (settlement) bank account the funds received from the first owners of the bank tokens and/or the funds provided by the bank to fulfill obligations on its tokens. </p> <p>   </p> <p> Only funds received from the first owners of the token of the bank received by the HTP resident and transferred by the bank for the fulfillment by the HTP resident of the bank’s obligations to the holders of its tokens are credited exclusively to the special account. </p> <p>   </p> <p> The funds in the special account shall not be spent on taxes, fees or other mandatory payments to budgets and extra-budgetary funds. They are not subject to levy in line with enforcement or other documents, seizures, suspensions or measures to ensure enforcement of executive documents. </p> <p>   </p> <p> The HTP resident is to ensure the identification of persons, who intend to become owners of the tokens of the bank, as well as persons from whom the bank intends to purchase tokens, and persons whose tokens the bank intends to purchase in accordance with legislative requirements in the field of preventing the legalization of proceeds from crime. The bank is to make sure that the identification is carried out as required. </p> <p>   </p> <p> NBB’s rights in regulating operations with tokens </p> <p>   </p> <p> The NBB determines the forms, scope and procedure of reporting on banks’ transactions (operations) to the National Bank; verifies compliance with legislation that govern the execution of transactions (operations) with tokens, including by conducting desk audits at the location of the National Bank, and approves the rules for transactions (operations) with tokens. </p> <p>   </p> <p> The NBB determines requirements to information and the composition of the information that should be contained in the White Paper of the bank, and the procedure for approval of such declarations. The rules will also establish criteria for HTP residents, with which banks are entitled to enter into agreements for the provision of services related to the issue and placement of bank tokens and the use of foreign exchange when making transactions (operations) with tokens. </p> <p>   </p> <p> The draft will presumably enter into force on January 1, 2021. </p> <p>   </p> <p> As reported, the main provisions of presidential decree No.8 took effect on March 28, 2018. It introduces new benefits and activities of HTP residents, including those with use of blockchain technologies, crypto currency mining and ICOs. </p> <p>   </p> <p> The HTP hosts the Finstore.by platform created by BelVEB Bank OJSC. It invites resident individuals and legal entities to invest in tokens of Belarusian companies. </p> <p>   </p> <p> The HTP was established by presidential decree No.12 of September 22, 2005 to foster development of software and information and communication technologies aimed at increasing the competitiveness of the national economy. The legal regime of the HTP applies throughout the country. As of April 14, 2020, 818 companies were registered in the High-Tech Park, employing over 61,000 people. End </p>

2020-06-10

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