Lawyer Points to Gaps in Cryptocurrency Collection Mechanism in Belarus

According to the document (available to ForkLog), in order to recover, the bailiff issues an order to seize the debtor’s cryptocurrencies and “if necessary, transfers them to the virtual wallet of the enforcement authority” or exchanges.

Aleinikov noted that the regulation is fragmented and only bitcoin falls under it, since only it is registered in the legislation as a cryptocurrency.

“The fact is that in Belarus, according to the legislation, tokens are called crypto assets, but there is no talk of their withdrawal. That is, if the bailiff cannot prove that the conditional Litecoin is used in international circulation as a universal medium of exchange, then it cannot be confiscated.”

The lawyer pointed out that under the law it is not clear who and how should prove that an asset belongs to cryptocurrencies, and the bailiff “will not figure it out for sure.”

Aleinikov also noted the poorly written mechanism for selling cryptocurrencies. The resolution says that the transfer of cryptocurrency for further implementation is carried out without establishing its value.

“The value of the realized cryptocurrency is the actual amount of funds credited to the account of the enforcement authority,” the document says.

The expert emphasized that it remains unclear who will determine the price of confiscated bitcoins and how this will happen:

“In fact, it is formulated as follows: for how much they sold, that is the price. With its opaque definition, the interests of the one from whom it is confiscated may suffer. The simplest situation looks like this – what they found from him, then they took it away. If they take 10 BTC, they take and sell 10 BTC for the amount they need.”

Seized assets should be sold through exchanges with their consent. If the sites refuse, “the arrest is lifted, other restrictions are canceled on the basis of a decision of the bailiff and the cryptocurrency is returned to the debtor.”

The regulation will come into force on May 17, 2022.

Checkout: Low Supply Cryptocurrency 2022, Huge Opportunity For Investors

Recall that in February, President of Belarus Alexander Lukashenko signed a decree involving the creation of a register of addresses of virtual wallets used in illegal activities, as well as indicating the procedure for the withdrawal of cryptocurrencies.