The Council of the European Union has adopted Council Decision (CFSP) 2026/1847, expanding its sanctions framework against Belarus by prohibiting Belarusian nationals and residents from owning, controlling, or serving on the governing bodies of crypto-asset service providers authorized under the Markets in Crypto-Assets (MiCA) regulation.

The decision, adopted on Thursday, entered into force on July 24. The crypto-specific restrictions will begin applying from August 25, extending earlier sanctions that covered only providers of crypto wallet, account, and custody services to encompass every crypto-asset service category recognized under MiCA. MiCA, which took full effect across the bloc on December 30, 2024, established the EU's first comprehensive regulatory regime for crypto assets, meaning firms serving European customers now need authorization under the framework to operate legally within the single market.

Under the expanded framework, Belarusian nationals and residents will no longer be permitted to own or control EU-based firms offering crypto services or to hold positions on their governing bodies. MiCA-authorized firms with existing Belarusian ownership or management will need to restructure their corporate governance to remain compliant. MiCA defines covered services to 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.

The measure builds on the European Union's broader sanctions policy linked to Russia's war against Ukraine. Belarus, under President Alexander Lukashenko, is Russia's closest political and military ally and has allowed Russian forces to stage operations from its territory. EU authorities have increasingly scrutinized crypto infrastructure they believe could facilitate sanctions evasion or serve as alternative financial channels, treating Belarusian-linked crypto activity as a potential conduit for Russian interests.

The legal text is available through EUR-Lex.

Timing Follows MiCA Transition Completion

The Belarus-related restriction arrives shortly after the European Union completed MiCA's transition period on July 1. Crypto firms operating without authorization were instructed to wind down their activities or face enforcement action once the transition period concluded.

EU Adopts 21st Russia Sanctions Package

Earlier on Thursday, the European Union adopted its 21st sanctions package against Russia, extending its transaction ban to 14 crypto-related service platforms located outside the bloc. The package also introduced a mechanism allowing the EU to prohibit transactions with foreign crypto service providers that authorities determine are being used to help Russia circumvent sanctions.

The final measures expanded on a proposal published on June 11, when the European Commission had proposed targeting 11 crypto platforms. The approved package increased that number to 14.

The proposal followed action taken by the United Kingdom on May 26, when British authorities sanctioned Huobi Global S.A., the Panama-based company behind HTX. UK officials alleged the company supported Russia-linked financial networks connected to sanctioned entities A7 and Garantex.

Responding to those allegations at the time, HTX told Cointelegraph that regulatory compliance remained its highest priority and said the exchange strictly followed the regulatory frameworks in every jurisdiction where it operates.

Belarus Continues Domestic Crypto Push

The EU's latest restrictions arrive as Belarus has increasingly promoted cryptocurrency use domestically while facing years of financial sanctions from Western governments.

In September 2025, Belarusian President Alexander Lukashenko urged the country's banking sector to expand the use of cryptocurrencies and modern digital payment systems, according to the Belarusian Telegraph Agency. During a meeting with central and commercial bank leaders, Lukashenko argued that traditional financial methods were no longer sufficient for an economy operating under extensive international sanctions.

Lukashenko said digital assets should play a larger role in cross-border payments and domestic financial operations. He argued that cryptocurrencies could reduce dependence on financial intermediaries while enabling automated transactions through smart contracts and giving users more control over their assets. He also stated that Belarusian crypto exchanges were on track to potentially double the value of external payments by the end of the year and instructed banks to actively support the country's growing use of cryptocurrency transactions.

That push came only days after Lukashenko publicly criticized his government for failing to deliver a comprehensive cryptocurrency oversight framework that he had first requested in 2023. According to the Belarusian Telegraph Agency, the president cited findings from an unscheduled inspection conducted by the State Control Committee, which reported that about half of the funds Belarusian investors transferred to foreign crypto platforms failed to return.

Lukashenko said the findings demonstrated the need for stronger supervision and investor protection. He instructed officials to establish transparent rules and new oversight mechanisms that would protect citizens, businesses, and the state's financial interests while allowing legitimate Belarusian and foreign companies to continue operating in the country's digital asset sector.

Belarus has permitted cryptocurrency transactions since 2018 under a legal framework administered through the country's Hi-Tech Park. More recently, Lukashenko has supported additional measures, including directing retail crypto trading toward domestic exchanges and encouraging the development of a state-backed cryptocurrency mining industry to take advantage of Belarus' surplus electricity.

The European Union's latest sanctions now place additional limits on how Belarusian nationals and residents can participate in the regulated crypto market inside the bloc, even as Belarus continues pursuing digital assets as part of its domestic financial strategy.