Belarus Approves Crypto as Underlying for Derivatives

Belarusian authorities have added cryptocurrencies, including Bitcoin, to the list of approved underlying assets for non-deliverable instruments. The decision, announced by the country's financial regulator, is designed to deepen the integration of digital assets into the traditional financial system and create new investment channels for institutional participants.

The simple read is that Belarus is granting crypto a formal stamp of legitimacy. The better market read is more specific. Non-deliverable instruments are derivatives such as contracts for difference (CFDs) and futures that settle in cash rather than requiring physical delivery of the underlying asset. That distinction matters. By approving crypto as an underlying for these products, Belarusian banks and brokerages can offer exposure to Bitcoin (BTC) and Ethereum (ETH) without needing to hold the tokens themselves. This sidesteps custody risk, wallet security, and the compliance burden of directly managing digital assets.

What Changed: Belarus Adds Crypto to Approved Underlying Assets

The regulatory update places cryptocurrencies alongside traditional assets like equities, commodities, and currencies on the approved list. The move applies to all non-deliverable instruments traded on the Belarusian Universal Commodity Exchange and other licensed venues. It does not legalize crypto as legal tender or authorize spot trading for retail investors. Instead, it targets the wholesale market: institutions that want to offer crypto-linked products to clients or hedge their own exposure.

Belarus has maintained a relatively permissive stance on digital assets since 2017, when President Alexander Lukashenko signed the Decree on Digital Economy Development. That law legalized mining, token issuance, and exchange operations within a special legal regime. The new rule extends that framework to derivatives, a logical next step for a jurisdiction that has positioned itself as a regional crypto hub.

Why Non-Deliverable Instruments Matter

The mechanism of non-deliverable instruments changes the risk profile for both issuers and buyers. For issuers, there is no need to source, store, or secure the actual cryptocurrency. Settlement occurs in Belarusian rubles or another fiat currency, based on the price of the underlying crypto at expiration. This reduces operational complexity and regulatory scrutiny around anti-money laundering checks on crypto wallets.

For buyers, the products offer a way to gain synthetic exposure to crypto price moves without opening an exchange account or managing private keys. That appeals to institutional investors who face internal policies against direct crypto holdings. The downside is counterparty risk: the buyer relies on the issuer's ability to pay out in cash. If the issuer defaults, the derivative is worthless regardless of the crypto price.