Sino-Belorussian Collaboration on Blockchain
Belarus has positioned itself as a regional hub for blockchain technology and cryptocurrency in recent years. In December 2017, Belarusian President Alexander Lukashenko signed Decree No. 8 "On the Development of the Digital Economy," which legalized business activities based on blockchain technology. The decree provided a legal framework for blockchain, cryptocurrencies, tokens, mining, smart contracts, and defined the legal status of crypto-platform operators and cryptocurrency exchange operators. It aimed to stimulate the development of the IT sector in Belarus by creating a special legal regime for companies registered in the High Technology Park (HTP).
The HTP has become an attractive place for blockchain and crypto companies, offering tax benefits and a favorable regulatory environment. HTP residents are exempt from income tax and VAT, instead paying only 1% of gross profit. The decree also allows HTP residents to apply foreign law to shareholder agreements, making it easier to attract foreign investment. As of 2021, it is estimated that over 350,000 people, or 3.73% of Belarus' population, own cryptocurrency. While paying for goods and services with crypto is banned for non-HTP companies, transactions with tokens do not require VAT, improving the position of crypto businesses in Belarus. In 2018, Belarus also issued accounting and reporting standards for crypto assets.
China has emerged as a key partner for Belarus in the blockchain and crypto space. In 2019, the two countries agreed to create a joint China-Belarus Great Stone Industrial Park, envisioned as an "international eco-city" to attract high-tech industries, including blockchain. Chinese tech giants like Huawei and ZTE have set up research centers in the HTP focused on blockchain applications. The China-Belarus collaboration extends to academic partnerships as well. In 2018, the Belarusian State University and Dalian University of Technology established a joint blockchain lab to train specialists and develop practical applications of the technology. Joint educational programs have also been launched between HTP and several Chinese universities.
In June 2024, a significant development in Sino-Belarusian cooperation occurred with the signing of an agreement on cooperation in IT within the China-Belarus Industrial Park Great Stone. This agreement aims to enhance collaboration in the fields of information technology, including blockchain, artificial intelligence, and other emerging technologies. The Great Stone Industrial Park continues to attract investments and technological advancements, solidifying its position as a hub for innovation and international cooperation.
Additionally, during a recent visit to Beijing, Belarusian Prime Minister Roman Golovchenko discussed the potential of joint ventures with China in the field of digital technologies, emphasizing blockchain, AI, and Big Data. This visit highlighted Belarus' ongoing commitment to deepening its strategic partnership with China in the tech sector. Belarus has actively courted Chinese investment and collaboration in developing its blockchain and cryptocurrency sector.
Yuanbao Tech, a Chinese blockchain company, has invested in projects within the Belarus Hi-Tech Park (HTP). HTP is a special economic zone in Belarus designed to foster IT and blockchain innovations. Yuanbao Tech's investment aims to support startups focusing on blockchain-based financial services, smart contracts, and decentralized applications (DApps). Huobi, a leading Chinese cryptocurrency exchange, has entered into partnerships with Belarusian fintech firms to develop blockchain solutions. Fenbushi Capital, one of the first venture capital firms that exclusively invests in blockchain-enabled companies, has shown interest in Belarusian blockchain startups.
A dedicated blockchain fund has been established under the Sino-Belarus cooperation framework to invest in promising blockchain startup. Under the Digital Silk Road initiative, part of China's Belt and Road Initiative (BRI), a consortium has been formed to promote blockchain technology. This consortium includes investments in Belarusian startups that develop blockchain solutions for logistics, trade finance, and digital infrastructure. Chinese tech firms have also invested in the Blockchain Academy of Belarus to nurture talent and foster innovation.
The Belarus-China Blockchain Innovation Fund has been pivotal in advancing blockchain technology through targeted investments in several notable projects across various sectors. One significant initiative is the SupplyChainLink project, a blockchain-based solution aimed at enhancing transparency and traceability in supply chains, particularly within logistics and manufacturing industries. This project has received investment to develop the platform and pilot it with major logistics companies in both China and Belarus.
These investments help create educational programs and research initiatives that drive blockchain technology advancements in Belarus. BGI, a leading genomics organization in China, has partnered with Belarusian research institutions to explore the use of blockchain in genomics and personalized medicine. This joint venture aims to enhance data security and privacy in genomic research and patient-specific treatments. A consortium comprising Chinese tech firms, Belarusian hospitals, and research centers is working on blockchain-based solutions for medical data management.
Huawei, a major Chinese tech company, has collaborated with Belarusian healthcare providers to implement blockchain solutions in electronic health records (EHR) systems. This joint venture aims to enhance the security and efficiency of EHRs, improving patient care and streamlining healthcare processes. Chinese telemedicine companies and Belarusian healthcare institutions are partnering to create blockchain-based telemedicine platforms. These platforms aim to provide secure and reliable remote healthcare services, ensuring patient confidentiality and data security.
In addition to its collaboration with China, Belarus has also been actively engaging with Russia in the realms of cryptocurrency and blockchain technology. Belarus and Russia have embarked on several joint research initiatives focused on blockchain technology. These projects are often conducted through partnerships between their respective universities and research institutions. For instance, Belarusian State University and Moscow State University have established joint programs and research labs dedicated to exploring blockchain applications, cybersecurity, and digital currencies. These collaborative efforts aim to leverage the expertise and resources of both countries to drive innovation and practical applications of blockchain technology.
Both Belarus and Russia have been working towards harmonizing their regulatory frameworks to facilitate cross-border blockchain and cryptocurrency projects. Belarus’ Decree No. 8, "On the Development of the Digital Economy," which provides a comprehensive legal framework for blockchain and cryptocurrency operations, has been a model for similar regulatory initiatives in Russia. Several joint ventures between Russian and Belarusian companies have been established to explore blockchain and cryptocurrency opportunities. These ventures often focus on developing blockchain-based solutions for various industries, including finance, logistics, and public services.
The High Technology Park (HTP) in Belarus, with its favorable regulatory environment and tax incentives, has become a hub for these joint ventures. Russian companies, attracted by these benefits, have set up subsidiaries and partnered with Belarusian firms to leverage the HTP’s ecosystem. To support the growing demand for blockchain and cryptocurrency expertise, Belarus and Russia have also launched joint educational and training programs. These programs are designed to develop a skilled workforce capable of driving innovation in the digital economy.
Collaborative initiatives include student exchange programs, joint degrees, and professional training courses offered by leading universities in both countries. These educational collaborations ensure that both nations can cultivate a pool of talented professionals well-versed in blockchain technology. The development of technological and industrial parks has been a key aspect of Belarus-Russia collaboration in blockchain technology. Inspired by the success of the China-Belarus Great Stone Industrial Park, Belarus and Russia have discussed the establishment of similar parks focused on digital technologies.
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