Russia’s Prosecutor Basic has designated Ukrainian cryptocurrency change WhiteBit as an “undesirable group.” They accuse it of facilitating unlawful fund transfers out of Russia and financing Ukraine’s armed forces.
The designation additionally extends to WhiteBit’s mother or father firm, W Group, and all affiliated entities, successfully banning their operations in Russia.
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Russia Strikes Towards WhiteBit in Escalating Crypto–Battle Crackdown
Native media reviews that, in line with Russian authorities, WhiteBit’s administration has moved roughly $11 million to Ukraine since 2022. This contains almost $900,000 earmarked for drone purchases.
The Prosecutor Basic’s Workplace additional claims that the platform offered technical assist to United24, Ukraine’s state-backed crypto donation platform.
Allegedly, additionally they engaged in “shadow schemes” to withdraw funds from Russia and conduct different illicit actions.
Based in 2018 by Ukrainian entrepreneurs, WhiteBit claims an lively person base exceeding 8 million and each day spot buying and selling volumes of $11 billion, with futures buying and selling reaching as much as $40 billion.
Regardless of its worldwide attain, the platform now faces vital restrictions in Russia amid a tightening regulatory setting.
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The transfer in opposition to WhiteBit coincides with Russia’s accelerated push to formalize crypto regulation. In keeping with native media, the Financial institution of Russia has outlined new licensing necessities for crypto exchanges and digital depositories, promising less complicated licensing for platforms that don’t deal in securities.
Banks and brokers wishing to function with cryptocurrencies will face particular prudential necessities to mitigate dangers to TradFi actions.
Ekaterina Lozgacheva, Director of the Financial institution of Russia’s Division of Strategic Growth of the Monetary Market, emphasised that the regulator goals to facilitate the sale of mined cryptocurrencies each domestically and overseas. On the identical time, it might introduce penalties for intermediaries partaking in unlawful actions.
These measures are slated to take impact by July 1, 2027, as soon as amendments to Russia’s crypto laws are finalized.
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Russia Proposes Strict Crypto Funding Limits
As a part of the proposed framework, non-professional traders can be allowed to put money into digital currencies, however inside strict annual limits.
Presently, the Central Financial institution has advised a ceiling of 300,000 rubles per yr per middleman. Nevertheless, the Ministry of Finance has indicated that this determine may very well be adjusted.
Deputy Finance Minister Ivan Chebeskov acknowledged that any market proposals to lift this threshold can be thought-about. This displays a broader intent to stability investor entry with monetary safeguards.
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Finance Minister Anton Siluanov expressed assist for the plan. He indicated that non-professional entry must be confined to formally registered platforms and topic to funding limits.
“To reduce dangers, the central financial institution and I plan to restrict the quantity of such transactions and investments within the crypto market,” native media reported, citing Siluanov.
He famous that draft laws regulating digital currencies is predicted to be submitted to the State Duma within the first half of 2026.
The crackdown on WhiteBit highlights Russia’s rising scrutiny of crypto flows, notably amid geopolitical tensions with Ukraine.
As authorities tighten management over crypto intermediaries and set up clear authorized liabilities, platforms working throughout borders could face mounting operational and authorized dangers within the Russian market.