EU expands Belarus crypto ban to all MiCA services from Aug 25

The European Union will prohibit Belarusian nationals and residents from owning, controlling or managing crypto exchanges and other service providers regulated under the Markets in Crypto-Assets framework starting Aug. 25, expanding a restriction that previously applied only to custodial wallet and account services.

The measure appears in Council Decision (CFSP) 2026/1847, adopted July 24 to amend the EU's sanctions regime against Belarus over its involvement in Russia's war against Ukraine. The decision enters into force immediately, while the expanded crypto provision takes effect Aug. 25.

"Belarusian nationals and residents may not own or control an EU-based entity providing any other crypto-asset services as defined under MiCA or hold a position on its governing body," the Council said in the decision.

MiCA's service categories include operating trading platforms, exchanging crypto assets, executing and transmitting client orders, placing crypto assets, providing transfers, offering investment advice and portfolio management. The expansion comes weeks after MiCA's transition period ended July 1, when unauthorized crypto companies were ordered to wind down or face enforcement actions.

The Belarus restriction follows a broader EU push to target crypto platforms and financial networks accused of helping Russia evade sanctions. On the same day, as part of its 21st sanctions package against Russia, the EU extended its transaction ban to 14 crypto-related service platforms outside the bloc and introduced a mechanism allowing it to prohibit dealings with any foreign crypto provider used by Russia to evade sanctions. The final package expands on the June 11 proposal, which targeted 11 crypto platforms.

21st Russia Package Adds 94 Banks, Freezes Oil Cap

The 21st sanctions package, which EU foreign policy chief Kaja Kallas called the bloc's largest in four years, places 94 Russian financial institutions and the Moscow Exchange under full restrictions. It also disconnects 32 banks from the SWIFT messaging network. EU members agreed to freeze the Russian oil price cap at $44.10 per barrel for 12 months, preventing an automatic adjustment during possible global price increases.

More than 40 vessels connected to Russia's shadow fleet face new restrictions, along with bunkering companies, ports and refineries supporting oil exports. The package also restricts exports of drone equipment, electronic warfare systems and metals used in military production, with more than 50 military-industrial entities added to sanctions lists.

Industry and Compliance Implications

The expanded Belarus ban creates compliance obligations for EU-based crypto firms that may have Belarusian ownership or management ties. Under the amended rules, any MiCA-authorized entity must verify that its owners, controlling parties and governing body members are not Belarusian nationals or residents. The restriction applies to all 27 EU member states and covers the full scope of MiCA-regulated activities.

The UK imposed sanctions on Huobi Global S.A., the Panamanian company behind HTX, on May 26 over alleged support for Russia-linked financial networks involving sanctioned entities A7 and Garantex. HTX denied wrongdoing, telling Cointelegraph that regulatory compliance "remains our absolute top priority."

The EU's dual actions — expanding Belarus restrictions while widening Russia-focused crypto sanctions — signal that regulators are using the MiCA framework as a geopolitical enforcement tool, increasing compliance costs and operational complexity for crypto firms operating in Europe.

This article is for informational purposes only and does not constitute investment advice.