Belarusian nationals and residents are to be banned from owning, controlling or helping run any crypto-asset service provider regulated under the European Union’s Markets in Crypto-Assets (MiCA) framework, in a significant tightening of sanctions linked to Russia’s war in Ukraine.
Under Council Decision (CFSP) 2026/1847, adopted by the Council of the European Union on Thursday, the bloc has expanded its Belarus sanctions regime to cover all MiCA‐authorised crypto-asset service providers (CASPs). The decision took legal effect on 24 July, with the specific crypto restrictions due to apply from 25 August.
The new rules mean Belarusian nationals and residents will no longer be allowed to own or control EU‐based companies offering crypto services, nor sit on their governing bodies, if those firms are authorised under MiCA. The prohibition will apply regardless of whether the person lives inside or outside the EU.
Sanctions extended across all MiCA crypto services
Earlier EU measures targeting Belarus had focused only on providers of crypto wallet, account and custody services. Once the August deadline passes, the restriction will extend to every category of crypto-asset service recognised in MiCA.
Those services include operating crypto trading platforms, exchanging crypto assets, executing and transmitting client orders, placing crypto assets, providing transfer services, offering investment advice and managing crypto portfolios. Any MiCA‐regulated provider in these areas will be barred from Belarusian ownership, control or board participation.
The timing comes shortly after the EU completed MiCA’s transition period on 1 July. From that point, crypto firms operating within the bloc without appropriate authorisation were instructed to wind down their activities or risk enforcement action. The Belarus-specific measures now add a nationality‐based layer to that regulatory regime.
EU institutions have increasingly turned their attention to the role of crypto infrastructure in potential sanctions evasion, viewing digital assets as a possible alternative channel for cross‐border financial flows.
Linked to wider Russia sanctions drive
The Belarus decision forms part of the EU’s broader response to Russia’s invasion of Ukraine, reflecting the close political and economic ties between Minsk and Moscow.
Earlier on Thursday, the EU adopted its 21st sanctions package against Russia, which extended a transaction ban to 14 crypto‐related service platforms located outside the bloc. The package included a new mechanism allowing the EU to prohibit transactions with foreign crypto service providers if officials conclude they are being used to help Russia circumvent sanctions.
The final package built on a European Commission proposal published on 11 June, which had initially identified 11 crypto platforms as targets. During negotiations, that list was expanded to 14 before the measures were formally approved.
The Commission’s plan followed steps taken by the United Kingdom on 26 May, when British authorities sanctioned Huobi Global S.A., the Panama‐based company behind HTX. UK officials alleged the firm supported Russia‐linked financial networks connected to already sanctioned entities A7 and Garantex.
Responding at the time to those allegations, HTX told Cointelegraph that regulatory compliance was its highest priority and said the exchange “strictly followed the regulatory frameworks in every jurisdiction where it operates”.
Minsk pushes crypto use at home
The latest EU restrictions arrive as Belarus has been promoting cryptocurrencies domestically in response to long‐running Western financial sanctions.
According to the Belarusian Telegraph Agency, President Alexander Lukashenko in September 2025 urged the country’s banking sector to widen the use of cryptocurrencies and modern digital payment systems. He argued that traditional financial mechanisms were no longer sufficient for an economy operating under extensive international sanctions.
During a meeting with central and commercial bank leaders, Lukashenko said digital assets should play a bigger role in both cross‐border payments and domestic financial operations. He suggested that cryptocurrencies could reduce reliance on financial intermediaries, enable automated transactions via smart contracts and give users greater control over their assets.
At the time, he said Belarusian crypto exchanges were on course potentially to double the value of external payments by the end of the year, and directed banks to support the rising volume of cryptocurrency transactions within the country.
That push came only days after Lukashenko publicly criticised his own government for failing to deliver a comprehensive cryptocurrency oversight framework he had first requested in 2023.
Citing findings from an unscheduled inspection by the State Control Committee, and again according to the Belarusian Telegraph Agency, the president highlighted evidence that about half of the funds Belarusian investors transferred to foreign crypto platforms were not returning. He said the results underlined the need for stronger supervision and better investor protection.
Lukashenko instructed officials to set out clear rules and fresh oversight mechanisms designed to protect citizens, businesses and the state’s financial interests, while still allowing legitimate Belarusian and foreign companies to operate in the country’s digital asset sector.
Belarus has allowed cryptocurrency transactions since 2018 under a legal regime run through its Hi‐Tech Park. In recent years, Lukashenko has backed additional steps, including steering retail crypto trading towards domestic exchanges and promoting the development of a state‐backed cryptocurrency mining industry to exploit Belarus’ surplus electricity.
The EU’s latest sanctions now sharply restrict the ability of Belarusian nationals and residents to participate in the regulated crypto market within the bloc, even as Minsk seeks to deepen its reliance on digital assets at home.
