The European Union is tightening its sanctions on Belarus by extending a ban on crypto service ownership to cover all providers regulated under the Markets in Crypto-Assets (MiCA) framework. The new rules, adopted Thursday through Council Decision (CFSP) 2026/1847, will take effect on August 25. They go beyond an earlier restriction that only applied to companies offering crypto wallet, account, or custody services.
New EU sanctions target Belarus crypto ownership
Under the amended measures, Belarusian nationals and residents are no longer allowed to own, control, or manage any EU-based entity that provides crypto-asset services as defined by MiCA. This includes a wide range of activities: operating trading platforms, exchanging crypto assets, executing and transmitting client orders, placing crypto assets, providing transfers, offering investment advice, or handling portfolio management. The ban also covers holding a position on the governing body of such a company.
The decision enters into force on July 24, but the expanded crypto provisions will apply from August 25. This timing is notable because it comes just weeks after MiCA’s transition period ended on July 1. Crypto companies that had not obtained authorization under MiCA were already instructed to wind down or face enforcement actions.
Broader crackdown on Russia-linked platforms
The Belarus restriction is part of a wider EU push to target crypto platforms and financial networks believed to help Russia evade sanctions imposed over its war in Ukraine. 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. It also introduced a mechanism that allows the EU to prohibit dealings with any foreign crypto provider used by Russia to evade sanctions. This final package builds on an earlier June 11 proposal that targeted 11 crypto platforms.
The EU’s move follows a similar action by the United Kingdom. On May 26, the UK sanctioned Huobi Global S.A., the Panamanian company behind the $HTX token, over alleged support for Russia-linked financial networks involving sanctioned entities A7 and Garantex. In response, $HTX denied any wrongdoing. The company told Cointelegraph that regulatory compliance “remains our absolute top priority” and that it strictly adheres to regulatory frameworks in the jurisdictions where it operates.
Overall, the EU is clearly taking a more aggressive stance on crypto services that might facilitate sanctions evasion. Whether these measures will be effective remains to be seen, but they signal that regulators are paying close attention to how digital assets move across borders.
