Russia’s Prosecutor General declares Ukrainian exchange WhiteBit and its parent company “undesirable organizations,” alleging illegal fund transfers and support for Ukraine’s military. WhiteBit reportedly moved $11 million to Ukraine, including funds for drone purchases, prompting a ban on its operations in Russia.

Despite boasting 8 million users and high trading volumes, WhiteBit faces restrictions in Russia due to alleged illicit activities. This crackdown coincides with Russia’s efforts to regulate crypto, with new licensing requirements for exchanges and strict rules for banks and brokers dealing with cryptocurrencies.

The Bank of Russia plans to introduce penalties for intermediaries engaging in illegal activities and aims to simplify licensing for compliant platforms by July 1, 2027. Non-professional investors may soon have limited access to digital currencies, with proposed annual investment limits and penalties for violators.

Finance Minister Siluanov supports restricting non-professional access to registered platforms with investment limits to mitigate risks. Draft legislation regulating digital currencies is expected in 2026, reflecting Russia’s tightening control over crypto flows amidst geopolitical tensions with Ukraine.

The crackdown on WhiteBit signals Russia’s increased scrutiny of crypto activities, posing operational and legal risks for platforms operating across borders. As regulatory measures tighten and legal liabilities become clearer, intermediaries in the Russian market may face growing challenges.

Read more at Yahoo Finance: Russia Targets Crypto’s Shadow War Pipeline as WhiteBit Faces Sweeping Ban