The Attorney General of the Russian Federation designated the Ukrainian cryptocurrency exchange WhiteBit as an 'undesirable organization.' They are accused of promoting illegal fund transfers outside of Russia and being involved in funding the Ukrainian military.
This designation also applies to the parent company, W Group, and all related organizations, effectively banning activities within Russia.
Russia intensifies crackdown on WhiteBit
According to local media reports, Russian authorities have pointed out that the management of WhiteBit transferred approximately 1.1 billion yen to Ukraine since 2022. Of this amount, about 900 million yen was designated for drone purchases.
The Attorney General's office also claims that the platform provided technical support to the Ukraine government-supported cryptocurrency donation platform United24.
At the same time, there are suspicions of involvement in withdrawal of funds from Russia and other illegal activities through "shadow schemes."
WhiteBit was founded in 2018 by Ukrainian entrepreneurs, claiming to have over 8 million active users, with a daily trading volume of $11 billion in spot trading and up to $40 billion in futures trading.
While the platform has an international presence, it has faced significant constraints under the tightening regulations in Russia.
The measures taken against WhiteBit this time align with Russia's moves to accelerate the institutionalization of cryptocurrency regulation. According to local reports, the Central Bank of Russia has indicated new licensing requirements for cryptocurrency exchanges and digital custodians, promising simplified approvals for platforms that do not handle securities.
When banks and brokers handle cryptocurrencies, special prudence requirements are needed to mitigate risks associated with traditional financial (TradFi) operations.
Ekaterina Rozgacheva, head of the Financial Market Strategy Development Department at the Central Bank of Russia, emphasized the authorities' intention to promote the sale of cryptocurrencies obtained through mining both domestically and internationally. At the same time, she also revealed plans to impose penalties on intermediaries involved in fraudulent activities.
These measures are scheduled to come into effect on July 1, 2027, as soon as the amendments to Russia's cryptocurrency-related laws are completed.
Russia's strict proposed restrictions on cryptocurrency investment
Under the new proposed regulatory framework, general investors will be allowed to invest in digital currencies, but strict annual limits will be imposed.
Currently, the central bank is proposing an annual limit of 300,000 rubles per intermediary. However, the Ministry of Finance has suggested that this amount may be adjusted in the future.
Deputy Finance Minister Ivan Chebeskov indicated that proposals from the market side to raise this limit would also be considered. This is a move intended to balance investor access and financial security.
Finance Minister Anton Siluanov supported this proposal, stating that general investors should only be allowed to invest on officially registered platforms and that investment limits should apply.
"To minimize risks, the central bank and I plan to set limits on such transactions and investment volumes," local media reported Finance Minister Siluanov as saying.
He also indicated that a bill regarding digital currency regulation is expected to be submitted to the lower house in the first half of 2026.
The strengthening of regulations on WhiteBit indicates an increase in monitoring of cryptocurrency flows by Russia against the backdrop of geopolitical tensions with Ukraine.
As authorities advance regulations and clarify legal responsibilities for cryptocurrency intermediaries, the operational and legal risks for cross-border platforms in the Russian market are expected to increase.