A KYT (Know Your Transaction) provider for monitoring cryptocurrency transactions will be introduced in Belarus.
The creation of a KYT provider within the Belarusian Hi-Tech Park (HTP) was discussed today at a meeting of the HTP Supervisory Board chaired by Prime Minister Aliaksandr Turchyn.
According to Dzmitry Kalechyts, first deputy head of the HTP Supervisory Board Secretariat, the meeting discussed two draft regulations: one setting out the requirements for obtaining crypto bank status and another establishing requirements for internal control procedures.
The first document covers issues related to cryptoasset operations and elements of banking governance.
“It was developed jointly with the National Bank. It establishes the basic requirements for the structure of the business plan, requirements for applicants, requirements for beneficial owners and for the information system in which the crypto bank will operate,” Kalechyts said.
The second document is aimed at combating money laundering and the financing of terrorism.
“The document establishes unified, systematic approaches to work in this area. In essence, it combines the regulatory framework that exists in the banking sector with the specific features of a crypto bank’s operations. Overall, these two documents complete the formation of the legal framework required for the operation of crypto banks and send an important signal to the entire crypto ecosystem that it is both possible and necessary to move in this direction,” Kalechyts said.
The meeting also discussed the use of Know Your Transaction (KYT) technology to monitor financial transactions, identify suspicious activity and prevent money laundering.
“Another issue under consideration is the introduction of a new type of activity within the jurisdiction of the Hi-Tech Park. This is the KYT provider (Know Your Transaction). It is a very important element in ensuring the secure and stable operation of the cryptocurrency transfer sector.
This is a requirement of international organisations involved in combating money laundering and terrorist financing. It is also intended to support the development of domestic solutions in Belarus built around this business model, thereby further strengthening the overall potential of our country’s Hi-Tech Park,” Kalechyts said.
