Russia’s Prosecutor General has declared the Ukrainian cryptocurrency exchange WhiteBit an “undesirable organization.” This designation effectively bans its operations within Russia. The order also applies to WhiteBit’s parent company, W Group, and all related entities.
Russian authorities accuse WhiteBit of facilitating illegal financial transfers out of the country. They also allege the exchange has been financing Ukraine’s military since 2022. Reports from local media claim WhiteBit’s management moved approximately $11 million to Ukraine. Of this amount, nearly $900,000 was allegedly earmarked for purchasing drones.
The Prosecutor General’s Office further states that WhiteBit provided technical support to United24. This is Ukraine’s official, state-backed platform for crypto donations. Authorities also allege the exchange used “shadow schemes” to withdraw funds from Russia for other illicit activities.
WhiteBit was founded in 2018 by Ukrainian entrepreneurs. The exchange claims to have over 8 million active users. It reports daily spot trading volumes of $11 billion, with futures trading reaching up to $40 billion. Despite its international scale, it now faces severe restrictions in Russia.
This crackdown coincides with Russia’s push to formalize cryptocurrency regulation. The Bank of Russia has outlined new licensing rules for crypto exchanges and digital depositories. The proposed system promises simpler licensing for platforms that do not deal in securities.
Banks and brokers wanting to handle cryptocurrencies will face special requirements. These are designed to protect traditional financial activities from associated risks. A bank official stated the goal is to facilitate the legal sale of mined cryptocurrency, both domestically and abroad. The rules would also introduce penalties for intermediaries involved in illegal operations.
These regulatory measures are scheduled to take effect by July 1, 2027. They will be enacted once amendments to Russia’s crypto laws are finalized.
Part of the proposed framework includes strict investment limits for non-professional investors. The Central Bank has suggested an annual cap of 300,000 rubles per person, per intermediary. However, the Ministry of Finance has indicated this figure could be adjusted. Officials say they will consider market proposals to raise the threshold, aiming to balance access with financial safety.
Draft legislation to regulate digital currencies is expected to be submitted to Russia’s parliament in the first half of 2026. The action against WhiteBit underscores Russia’s increasing scrutiny of cryptocurrency flows, especially amid ongoing tensions with Ukraine. As authorities establish clearer rules and legal liabilities, cross-border crypto platforms may face greater operational risks in the Russian market.
