EU to Prohibit Belarusian Nationals from Owning Crypto Service Providers Under MiCA
Quick Look
- The EU will ban Belarusian nationals and residents from owning or managing crypto exchanges and service providers regulated under MiCA from Aug.
- This expands existing sanctions against Belarus for its role in Russia's war against Ukraine, following MiCA's transition period end.
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Why It Matters
The EU adopted Council Decision (CFSP) 2026/1847 to amend its sanctions framework against Belarus due to its involvement in Russia’s war against Ukraine, expanding existing crypto restrictions.
The European Union will prohibit Belarusian nationals and residents from owning, controlling or managing crypto exchanges and other crypto service providers regulated under the Markets in Crypto-Assets (MiCA) framework starting Aug. 25.
The measure appears in Council Decision (CFSP) 2026/1847, adopted Thursday to amend the EU’s sanctions framework targeting Belarus over its involvement in Russia’s war against Ukraine. The document expands an existing restriction that applied only to companies providing crypto wallet, account or custody services.
The decision enters into force on July 24, while the expanded crypto provision will apply from Aug. 25.
Under the amendment, 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.
MiCA’s service categories include operating trading platforms, exchanging crypto assets, executing and transmitting client orders, placing crypto assets, providing transfers, offering investment advice or portfolio management.
EU expands crypto sanctions after MiCA transition ends
The sanctions expansion comes weeks after the end of MiCA’s transition period on July 1. Crypto companies without authorization were ordered to wind down or face enforcement actions.
Related: Ripple secures full MiCA license for crypto services across Europe
The Belarus restriction follows a broader EU push to target crypto platforms and financial networks accused of helping Russia evade sanctions imposed over its war in Ukraine.
On Thursday, 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.
The proposal followed the United Kingdom’s May 26 sanctions against Huobi Global S.A., the Panamanian company behind HTX, 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” and that it strictly adheres to regulatory frameworks in the jurisdictions where it operates.
Open Questions
- How will affected Belarusian nationals divest their holdings?
- What will be the immediate impact on EU crypto service providers?
