Belarus has proposed a unified regulatory framework for cryptocurrencies within the Eurasian Economic Union (EAEU) to address significant legal disparities among member states. The initiative aims to prevent legal conflicts and facilitate cross-border transactions among Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia.
Alexander Egorov, First Deputy Chairman of the Board of the National Bank of Belarus, presented the proposal. He warned that differing regulations incentivize crypto holders to move capital to jurisdictions with more flexible rules. This fragmentation creates risks for taxation and economic stability within the bloc.
This internal push for harmonization comes as the EAEU’s largest member, Russia, faces intensified external pressures from the European Union’s tightened cryptocurrency sanctions.
Within the EAEU, member states maintain diverse approaches to digital assets. Belarus currently allows crypto use for companies and individuals within its High-Tech Park zone. Discussions are underway to expand this framework to include crypto banking operations.
However, Belarusian President Aleksandr Lukashenko has called for stricter controls on crypto activities. A state audit reportedly found that nearly half of citizens’ investments sent to foreign crypto platforms do not return, raising concerns about investor protection and the country’s economic interests.
Russia, in contrast to Belarus, maintains severe restrictions on digital asset use and investment. Its Central Bank may modify regulations in early 2025 to allow capital management firms to acquire crypto-linked derivatives by 2026.
Kyrgyzstan has updated its banking instructions, allowing financial institutions to open escrow accounts for crypto token transactions. This broadens the banking sector’s role in the digital asset industry.
Kazakhstan plans to establish a cryptocurrency reserve ranging from $500 million to $1 billion. This reserve would be comprised of seized assets and repatriated funds.
Armenia will prohibit cash purchases of cryptocurrencies starting in 2025. This measure aims to combat anonymous transactions, though it does not restrict the general use of digital assets.
Meanwhile, the European Union approved its 19th package of sanctions against Russia, specifically targeting crypto platforms. The goal is to close loopholes for sanctions evasion.
Following the sanctions, platforms like Revolut and Bybit EU began blocking accounts of Russian users. This included individuals legally residing within the European Union.
One user reported that Bybit NL migrated to Bybit EU and then rejected their KYC verification. The rejection cited new regulatory changes, despite the user providing previously approved documentation. Revolut also closed accounts of Russian citizens with EU residency permits since November 1.
European Commission President Ursula von der Leyen stated these measures are designed to prevent the circumvention of sanctions. This marks the first time specific restrictions have been applied to cryptocurrency platforms in this context. An official document published on October 23 prohibits EU-licensed service providers from serving residents of the Russian Federation.