EU expands crypto restrictions on Belarus, banning its citizens from controlling all MiCA-regulated crypto service providers

OdailyOdaily reports that the European Union has further tightened restrictions on crypto assets concerning Belarus, prohibiting Belarusian citizens and residents from owning, controlling, or managing crypto service providers regulated under the Markets in Crypto-Assets (MiCA) regulation.

According to Council Decision (CFSP) 2026/1847, adopted by the Council of the European Union on July 24, this measure is an extension of the EU's sanctions framework targeting Belarus's involvement in the Russia-Ukraine conflict. The new rules will take effect on July 24, with the expanded restrictions on the crypto industry slated for implementation from August 25.

As defined by MiCA, the affected services include operating crypto trading platforms, exchanging crypto assets, executing and transmitting customer orders, crypto asset issuance services, asset transfer services, investment advisory, and portfolio management. These restrictions come as the MiCA transitional period ended on July 1. The EU had previously required unauthorized crypto firms to cease relevant operations or face regulatory enforcement.

The EU stated that this expansion is part of its efforts to combat the use of crypto platforms to evade sanctions against Russia. Earlier, in its 21st round of sanctions against Russia, the EU had extended trading bans to 14 foreign crypto service platforms and established a mechanism to potentially prohibit transactions with any foreign crypto service providers deemed to be assisting Russia in sanctions evasion.

Market participants point out that with the full implementation of the MiCA regulatory framework, the EU is further tightening its oversight of the crypto industry through licensing systems and sanction mechanisms. (Cointelegraph)