The cryptocurrency industry is developing in Belarus and the emergence of crypto brokers – companies offering services for the purchase, sale and exchange of cryptocurrencies to others – is becoming more and more relevant. Simply put, crypto brokers provide clients with the opportunity to invest in cryptocurrencies, develop and implement investment strategies for clients using tokens. The rules of operation of crypto brokers and the procedure for companies and individuals to interact with them are defined.
Who can become a Crypto broker
This is a new type of activity for resident companies of the Belarusian Hi—Tech Park. In order to engage in crypto—brokerage activities, a resident company of the Hi-Tech Park must:
1. Update the business project
To provide in the business project for the implementation of other activities using tokens, including those containing signs of professional and exchange—traded securities activities, investment fund activities, securitization, as well as operations to create and place their own tokens, in terms of providing services for transactions (operations) with tokens in the interests of others.
2. Amend the agreement with the Administration of the Hi-Tech Park or sign a new one
To conclude an agreement with the state institution ”Administration of the Hi-Tech Park“ on the conditions of activity of a resident of the Hi-Tech Park, in which to assume the obligation to carry out activities with tokens in the interests of other persons in accordance with the Rules established by the Hi-Tech Park.
3. Disclose information on your website
A cryptobroker must disclose information on his website:
- About the general conditions for the provision of services by a cryptobroker.
- Post a local document on conflict of interest management on your website.
- Information for clients on how to act in case of disagreement with the actions of a cryptobroker.
- Information about registration as a resident of the Hi-Tech Park.
4. Organize work to prevent the legalization of proceeds from crime, the financing of terrorist activities and the financing of the proliferation of weapons of mass destruction
Appoint employees responsible for functions related to the prevention of the legalization of proceeds from crime, the financing of terrorist activities and the financing of the proliferation of weapons of mass destruction. Instead of assigning employees, you can assign these functions to the company’s officials (officer).
Distribute responsibilities among the company’s employees for the implementation of measures to prevent the legalization of proceeds from crime, the financing of terrorist activities and the financing of the proliferation of weapons of mass destruction and consolidate this distribution in the company’s local documents.
5. Ensure that employees have a qualification certificate of a securities market specialist
Employees of the crypto broker, whose functions are aimed at making transactions (operations) with tokens in the interests of clients, as well as who advise clients on transactions (operations) with tokens, are required to have a qualification certificate of a securities market specialist of the first category.
What are the responsibilities of a cryptobroker
Some of the Main Responsibilities of a cryptobroker:
- To make transactions in the interests of clients only with residents of the Hi-Tech Park.
- Keep separate records of transactions related to the activities of the crypto broker, own funds and customer funds.
- Do not allow joint accounting of money, electronic money, tokens of two or more clients.
- Fulfill obligations to customers.
- Monitor all financial transactions of clients to prevent the legalization of criminal proceeds.
- To make transactions with cryptocurrencies in the interests of other persons only through crypto exchanges.
- Provide the client with a report on the execution of the contract.
- Keep a sound recording (video recording) negotiations with clients, notifying them about it in advance and storing such materials for at least five years.
- Take measures to ensure that one client does not create multiple accounts.
What services do crypto brokers provide?
Crypto brokers can advise clients on the implementation of transactions (operations) with tokens. The content of such consultations is an explanation of issues about making transactions with cryptocurrencies, with their storage, market analysis to develop investment strategies and minimize risks. On behalf of the client, make one or more transactions with cryptocurrencies on his behalf, but at the expense of the client. A crypto broker can make transactions with cryptocurrencies on a crypto exchange or on the free market.
Who can be a client of a crypto broker
Clients of a crypto broker can be individuals and companies.
There is one requirement for individuals: They must be at least 18 years old.
Other requirements are common to companies and individuals:
- They cannot be clients of a cryptobroker when the services of a cryptobroker are prohibited in the state of which the client is a resident.
- The clients of the crypto broker cannot be persons who are included in the list of persons involved in terrorism conducted by the CSS of Belarus. Neither can the beneficiaries of the owners of persons included in this list be clients of crypto brokers.
What kind of customer information does a cryptobroker need?
Crypto brokers are prohibited from making transactions for anonymous clients. Therefore, they ask for a small list of information.
Individual clients provide information:
- Full name.
- Citizenship.
- Date and place of birth
- Details of the passport or other identity document.
Clients — companies provide:
- Title.
- Registration number and date of state registration, which state body registered it. The same information is provided to the crypto broker by clients — individual entrepreneurs.
- Location.
- TIN (UNP) or non-resident identification number.
- The cryptobroker may ask clients for other information, which is determined by the agreement between the cryptobroker and the crypto exchange.
How Crypto Brokers Provide Services
To advise the client, a contract for the provision of paid services is concluded with him.
To make transactions with cryptocurrencies, a fee-based commission agreement is concluded with the client.
Let’s take a step-by-step look at how a crypto broker acts to make transactions in the interests of the client.
Step 1. Familiarizing the client with the risks
The cryptobroker introduces the client to the terms of the commission agreement and the risks associated with token transactions. In particular, the client is warned that the crypto broker is not responsible for the decisions made by his client. The client is asked to confirm that he is familiar with this information.
Citizens of Belarus, who are clients, receive a test to assess whether their knowledge is sufficient for conducting transactions with cryptocurrencies.
Step 2. Assurance of the circumstances
Before concluding the commission agreement, the cryptobroker asks the client for an assurance of the circumstances. In particular, that the transactions use an account and cryptocurrencies that belong to this particular client, as well as that the client undertakes not to provide his account to other persons.
Step 3. Conclusion of the commission agreement
The agreement includes in particular:
- The client determines the number of cryptocurrencies to buy, sell, or exchange, as well as the procedure for determining this amount.
- The amount of the crypto broker’s commission and the payment procedure.
- Terms of liability of the parties to the agreement.
- The terms of the cryptobroker’s reporting to the client.
- The term and procedure for withdrawing cryptocurrencies to the client’s crypto wallet.
Step 4. Providing services to the client
The client submits an application to the cryptobroker, on the basis of which the cryptobroker provides services. The application includes:
- The name and number of cryptocurrencies.
- The minimum and maximum prices or yields at which transactions are allowed.
- Other information for the execution of the client’s order.
Step 5. Transfer of money by the client to the cryptobroker
The client transfers money to the cryptobroker’s bank account or electronic wallet. The client requests the transfer of this money to the crypto exchange for conducting transactions with cryptocurrencies.
A crypto broker can, with the consent of clients, place the money received from them in deposits in Belarusian banks and receive interest income from this.
When a crypto broker works through a crypto exchange, he can lend his tokens to clients for transactions on the exchange for interest.
Step 6. Withdrawal of cryptocurrency to the client’s crypto wallet
On the client’s order, the cryptobroker outputs tokens to the client’s crypto wallet.
Our company helps to organize the activities of crypto brokers, as well as the interaction between clients and crypto brokers, so we are ready to advise you on all issues related to crypto brokers and investing in cryptocurrencies.
How to contact us
For more information or advice, we will be glad to receive your questions, do not hesitate to contact us. We are here to help and support you.
Phone and e-mail communication options are available for your convenience:
- +375293664477 (WhatsApp/Telegram/Viber);
- info@spex.by.
