The EU has extended its sanctions against Belarus to the crypto industry. According to a new decision passed by the EU Council, starting August 25, Belarusian citizens and residents are prohibited from holding, controlling, or managing crypto asset service providers subject to the Crypto Asset Market Regulation Act (MiCA).

This means that the restrictions are no longer limited to crypto wallets and custody services, but have expanded to all crypto businesses covered by MiCA. This comes against the backdrop of the EU's continued tightening of sanctions against Belarus related to the Russia-Ukraine war, and the fact that MiCA's transition period ended on July 1st.

The restrictions have been expanded to include all MiCA services.

Under the new regulations, Belarusian citizens and residents will be prohibited from owning or controlling companies that provide encryption services within the European Union, as well as from holding positions in the governance bodies of such companies.

• Operating a crypto trading platform
• Crypto asset exchange and customer order execution
• Transfers, issuance arrangements, investment advice and portfolio management

This means that any crypto service provider that is licensed or regulated by MiCA will have its equity, control, and management positions restricted.

The measures will be implemented after the end of the MiCA transition period.

Following the completion of the MiCA transition arrangements by the EU on July 1, unauthorized crypto companies have been ordered to cease operations or face enforcement action. These restrictions on Belarus come after the full implementation of this regulatory framework.

The report mentioned that the European Commission proposed a sanctions plan on June 11, initially targeting 11 encryption platforms, but the final approved version expanded to 14.

Prior to this, on May 26, the UK imposed sanctions on Huobi Global S.A., which is linked to HTX. The UK stated that the company was associated with sanctioned entities A7 and Garantex, which are involved in Russian financial networks. HTX responded at the time that it always prioritizes compliance and adheres to regulatory requirements in various regions.

Belarus continues to promote its domestic crypto industry

In line with the EU's tightening of restrictions, Belarus has continued to promote the use of digital assets for nearly a year. In September 2025, Belarusian President Lukashenko requested the banking system to expand the use of cryptocurrencies and digital payment instruments, arguing that traditional financial methods were no longer sufficient to meet the needs of sanctioned economies.

He stated at the time that digital assets should play a greater role in cross-border payments and domestic financial activities, and that smart contracts and crypto payments could help reduce reliance on intermediaries. Lukashenko also called on banks to support the growth of crypto transactions in the country and to push for more comprehensive regulatory arrangements.

Belarus has permitted cryptocurrency trading within its high-tech parks since 2018. In recent years, the government has also proposed directing more retail cryptocurrency trading to domestic platforms and encouraging the development of a state-supported cryptocurrency mining industry to utilize the country's surplus electricity resources.