21 Apr 2022 14:18

Belarus allows impoundment of debtors' cryptocurrency

MINSK. April 21 (Interfax) - The Belarusian Justice Ministry has allowed bailiffs to impound the cryptocurrency of debtors and has established a respective procedure.

"The resolution formalizes the procedure of cryptocurrency impoundment in the course of enforcement, including the execution of a writ on confiscating debtor assets and other kinds of impoundment by the government," the ministry said.

The procedure "spells out the specifics of the impoundment, valuation and selling of cryptocurrency assets in an enforcement procedure," it said.

The resolution says that cryptocurrency is sold without being valuated. The value of sold cryptocurrency is the actual amount of money credited to an account of the enforcement agency.

If a crypto-platform operator and/or a cryptocurrency exchange operator refuses to sell the seized cryptocurrency, the impoundment is terminated, other restrictions (encumbrances) are canceled at the decision of a bailiff, and the cryptocurrency is returned to the debtor. Cryptocurrency impounded under a writ for debtor assets' confiscation is not returned to the debtor if the attempt to sell it in another form fails, the resolution said.

The resolution aims to implement the Belarusian president's order "On the Register of Digital Wallet Addresses (Identifiers) and Specifics of Cryptocurrency Turnover."

The document will take effect on May 17, 2022.