Russia’s Prosecutor General has designated Ukrainian cryptocurrency exchange Whitebit as an “undesirable organization.” They accuse it of facilitating the illegal movement of funds out of Russia and funding the Ukrainian military.
The designation also extends to WhiteBit’s parent company, W Group, and all related entities, effectively banning them from doing business in Russia.
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Russia moves to counter WhiteBit with escalating virtual currency and war crackdown
According to local media reports, Russian authorities say Whitebit management has moved about $11 million to Ukraine since 2022. This includes nearly $900,000 that was earmarked for the purchase of drones.
The Attorney General’s Office further alleges that the platform provided technical support to United24, a Ukrainian state-backed cryptocurrency donation platform.
They were also allegedly involved in a “shadow scheme” to extract funds from Russia and commit other illegal activities.
Founded by Ukrainian entrepreneurs in 2018, WhiteBit claims an active user base of over 8 million people, daily spot trading volume of $11 billion, and futures trading of up to $40 billion.
Despite the platform’s international popularity, it currently faces significant restrictions in Russia amid a tightening regulatory environment.
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The move against WhiteBit coincides with Russia’s accelerated formalization of cryptocurrency regulation. According to local media, the Bank of Russia has outlined new licensing requirements for virtual currency exchanges and digital depositories and promised to simplify licensing for platforms that do not deal in securities.
Banks and brokers wishing to operate in cryptocurrencies will face special prudential requirements to reduce risks to their TradFi activities.
Ekaterina Rozgacheva, director of the Financial Market Strategy and Development Department of the Bank of Russia, emphasized that the regulator aims to facilitate the sale of mined cryptocurrencies both domestically and internationally. At the same time, penalties will be introduced for intermediaries who engage in illegal activities.
These measures are expected to come into effect by July 1, 2027, once the amendments to Russia’s Cryptocurrency Law are completed.
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Russia proposes strict cryptocurrency investment restrictions
As part of the proposed framework, non-professional investors will also be allowed to invest in digital currencies, but with strict annual limits.
Currently, the central bank is proposing an annual limit of 300,000 rubles per intermediary. However, the Treasury has indicated that this figure may be adjusted.
Deputy Finance Minister Ivan Chebeskov said any market proposals to raise this threshold would be considered. This reflects a broader intention to balance investor access with financial safeguards.
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Finance Minister Anton Siluanov expressed support for the plan. He pointed out that access for non-experts should be limited to officially registered platforms and subject to investment restrictions.
“In order to minimize risks, the central bank and I plan to limit the volume of such transactions and investments in the virtual currency market,” local media quoted Siluanov as saying.
He noted that a bill to regulate digital currencies is expected to be submitted to the State Duma in the first half of 2026.
The WhiteBit crackdown highlights Russia’s growing scrutiny of cryptocurrency flows, especially amid geopolitical tensions with Ukraine.
As authorities tighten controls over crypto intermediaries and establish clear legal responsibilities, platforms operating across borders may face increased operational and legal risks in the Russian market.
