EU Tightens Crypto Sanctions on Belarus, Impacting Governance Control

The European Union has tightened its crypto-related sanctions against Belarus, effective August 25. According to Council Decision (CFSP) 2026/1847, adopted on Thursday, Belarusian nationals and residents will be prohibited from owning or controlling certain MiCA-regulated EU crypto service providers. This includes trading platforms, exchanges, order execution/transmission services, transfers, investment advice, or portfolio management.

The updated sanctions structure expands the existing limitation that covered only wallet, account, or custody services. The prohibition now extends to governance influence as well as economic control, targeting who can own, control, manage, or sit on governing bodies of EU-based entities providing MiCA-listed services.

Regulated firms must review their current ownership arrangements, management structures, and board compositions to assess whether they could be impacted by the new sanctions restriction. The timing is particularly significant since the EU's Markets in Crypto-Assets (MiCA) transition period ended on July 1, requiring crypto companies without necessary authorizations to wind down operations or face enforcement action.

The move aligns with broader EU efforts to limit crypto access tied to Russia and its war against Ukraine. The EU has been expanding its approach through successive sanctions packages and transaction bans covering crypto-related entities, aiming to prevent the use of crypto platforms for sanctioned activity.