The Russian Attorney General has designated the Ukrainian crypto-exchange WhiteBit as an 'undesirable organization.' They accuse it of facilitating illegal money transfers from Russia and financing Ukrainian armed forces.
This designation also applies to WhiteBit's parent company, W Group, and all affiliated companies, making their activities in Russia now prohibited.
Russia takes action against WhiteBit in escalating crypto-war operations
Local media report that Russian authorities say that the management of WhiteBit has transferred approximately $11 million to Ukraine since 2022. Of that, nearly $900,000 went to the purchase of drones.
The office of the Attorney General further claims that the platform provided technical support to United24, the Ukraine-supported crypto donation platform.
WhiteBit is also said to have been involved in “shadow structures” to withdraw money from Russia and conduct other illegal activities.
WhiteBit was founded in 2018 by Ukrainian entrepreneurs and claims to have over 8 million active users. The daily spot trading volume is $11 billion, and futures trading reaches $40 billion per day.
Despite the international presence, the platform is now facing significant restrictions in Russia due to increasingly strict crypto regulation.
The measure against WhiteBit comes at a time when Russia wants to implement rules for crypto more quickly. According to local media, the Bank of Russia has established new licensing requirements for crypto exchanges and digital custodial companies. They promise simpler licenses for platforms that do not trade in securities.
Banks and brokers wishing to work with crypto will face special requirements to mitigate risks for TradFi activities.
Ekaterina Lozgacheva, director of the Strategic Development Department of the Financial Market at the Bank of Russia, emphasized that the regulator wants to make the sale of mined cryptocurrencies easier both within Russia and abroad. At the same time, it aims to impose stricter penalties on intermediaries conducting illegal activities.
These measures are set to take effect on July 1, 2027, once the changes to Russian crypto legislation are finalized.
Russia proposes strict crypto investment limits
In the new proposal, non-professional investors will be allowed to invest in digital currencies, but under strict annual limits.
Currently, the central bank has proposed to set a limit of 300,000 rubles per year per intermediary. However, the Ministry of Finance has indicated that this amount may still be adjusted.
Deputy Finance Minister Ivan Chebeskov stated that all market proposals to increase this limit will be considered. This shows that a balance is being sought between investor access and financial protection.
Finance Minister Anton Siluanov supported the plan. He said that non-professional access should remain limited to officially registered platforms and subject to investment limits.
“To minimize risks, the central bank and I want to limit the volume of such transactions and investments in the crypto market,” said Siluanov, according to local media.
He reported that the bill on the regulation of digital currencies is expected to be sent to the State Duma in the first half of 2026.
The action against WhiteBit emphasizes that Russia is increasingly monitoring crypto flows, especially due to geopolitical tensions with Ukraine.
As authorities impose stricter rules for crypto intermediaries and establish clear legal liabilities, platforms operating cross-border may face increasingly greater operational and legal risks in the Russian market.