EU bans Belarusian ownership of EU crypto firms from Aug. 25

The European Union will prohibit Belarusian nationals and residents from owning, controlling or managing crypto exchanges and other crypto service providers based in the EU that fall under the Markets in Crypto-Assets (MiCA) framework, effective Aug. 25. The restriction appears in Council Decision (CFSP) 2026/1847, adopted Thursday to amend the bloc’s sanctions regime targeting Belarus over its role in Russia’s war in Ukraine. The decision entered into force on July 24.

The amendment expands an existing restriction that until now covered only companies providing crypto wallet, account or custody services. Under MiCA, crypto-asset services include operating trading platforms, exchanging crypto assets, executing and transmitting client orders, placing crypto assets, providing transfer services, and offering investment advice or portfolio management.

From Aug. 25, Belarusian nationals and residents may not own or control an EU-based entity that provides “any other crypto-asset services” as defined by MiCA, nor may they hold a position on such an entity’s governing body. The Council presented the change as part of efforts to cut channels that could be used to evade sanctions linked to the conflict in Ukraine.

The expansion follows the end of MiCA’s transition period on July 1, after which crypto firms without authorization were required to wind down operations in the EU or face enforcement. The Council’s measure is included in the EU’s 21st sanctions package against Russia, which also extended a transaction ban to 14 crypto-related platforms outside the bloc and introduced a mechanism to prohibit dealings with foreign crypto providers used to help Russia evade sanctions.

The United Kingdom imposed sanctions on Huobi Global S.A., the Panamanian company behind HTX, in late May over alleged links to Russia-related financial networks. HTX denied wrongdoing in a statement, saying regulatory compliance “remains our absolute top priority” and that it strictly adheres to regulatory frameworks in the jurisdictions where it operates.

The amended sanctions require EU-based crypto firms within MiCA’s scope to ensure their ownership and governance structures exclude Belarusian nationals and residents. Firms and platforms operating in the EU will need to review compliance procedures and corporate records before the Aug. 25 effective date to avoid potential enforcement actions under the sanctions regime.