In another example of small countries leading the way in technology innovation, Belarus has legalized on a national level ICO’s (Initial Coin Offerings) and smart contracts. Smart contracts are agreements that are hosted on the blockchain that are automatically executed when the conditions of the contract are met.
Business Insider provides the details:
Belarus President Alexander Lukashenko has signed the Decree “On Digital Economy Development” that legalizes ICO, cryptocurrencies and smart contracts. Adoption of the Decree makes Belarus the world’s first jurisdiction with the overall legal regulation of businesses based on blockchain technology.
“Having adopted the Decree, Belarus becomes one of the world’s most comfortable jurisdictions for IT business. Besides, the country is creating favorable conditions for the development of blockchain technology and businesses based on it,” said Vsevolod Yanchevsky, Director of Belarus Hi-Tech Park.
The Decree does not include any restrictions or special requirements for the creation, issue, storage, sale or exchange of digital tokens, as well as operation of cryptocurrency exchanges and platforms. Individuals are exempt from personal income tax on the incomes from mining, acquisition and sale of digital tokens; digital tokens shall not be declared. Activities related to mining, creation, acquisition and sale of digital tokens will remain tax-free until 2023.
One might have expected the first country to formalize the adoption of smart contracts would be the United States or other large country, but sometimes the regulatory environment of smaller countries allows them to be more nimble and act more quickly.
By introducing smart contract into jurisdiction and giving companies the right to use it in transactions, Belarus has become the first country in the world to legalize smart contracts at the country level.
“Smart contract may solve the fundamental problem of all humanity which is a failure to fulfill what has been agreed on paper. A computer program takes the function of a contract’s automatic fulfillment,” said Denis Aleinikov, Senior partner at the law firm Aleinikov & Partners.
This is all great news, and hopefully a sign of things to come for all countries. Imagine the reduction in fraud, reduced legal expenses, and the the positive impact on the overcrowded court system as smart contracts become more prevalent.
You can read the entire article over at businessinsider.com