The European Union will prohibit Belarusian nationals and residents from owning, controlling, or managing crypto exchanges and other crypto-asset service providers regulated under the Markets in Crypto-Assets (MiCA) framework, effective August 25.

The measure is set out in Council Decision (CFSP) 2026/1847, adopted Thursday to amend the EU's sanctions framework targeting Belarus over its role in Russia's war against Ukraine. The decision enters into force immediately, while the expanded crypto provision becomes applicable from August 25.

The amendment broadens an existing restriction that previously applied only to entities providing crypto wallet, account, or custody services. Under the updated rules, Belarusian nationals and residents are barred from owning or controlling any EU-based entity offering "any other crypto-asset services" as defined under MiCA, or from holding positions on their governing bodies.

MiCA's service categories encompass operating trading platforms, exchanging crypto assets, executing and transmitting client orders, placing crypto assets, providing transfer services, offering investment advice, and portfolio management.

Sanctions Expansion Follows MiCA Transition Deadline

The widened sanctions arrive weeks after MiCA's transition period concluded on July 1, at which point crypto companies operating without authorization were ordered to wind down operations or face enforcement actions. MiCA is the EU's first comprehensive crypto-asset regulatory framework, establishing uniform licensing and consumer protection rules across all 27 member states.

The Belarus restriction forms part of a broader EU effort to target crypto platforms and financial networks accused of facilitating Russian sanctions evasion tied to the war in Ukraine. Belarus, under President Alexander Lukashenko, has been a close ally of Moscow, providing territory and logistical support for Russia's military operations — a relationship that has made it a target of parallel EU sanctions regimes.

On Thursday, as part of its 21st sanctions package against Russia, the EU extended its transaction ban to 14 crypto-related service platforms based outside the bloc. The package also introduced a mechanism enabling the EU to prohibit dealings with any foreign crypto provider used by Russia to circumvent sanctions.

The final package expands on a June 11 proposal that had targeted 11 crypto platforms. That 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. Garantex, a Russia-based crypto exchange, was sanctioned by the US Treasury's Office of Foreign Assets Control (OFAC) in April 2022 for facilitating transactions tied to ransomware operators and other illicit actors.

HTX denied the allegations, telling Cointelegraph that regulatory compliance "remains our absolute top priority" and that the company strictly adheres to regulatory frameworks in all jurisdictions where it operates.