TLDR

Russia banned WhiteBit and W Group for alleged $11M transfers to Ukraine since 2022
Russian authorities claim WhiteBit helped fund drone purchases for Ukraine’s army
WhiteBit is accused of supporting Ukraine’s official donation platform United24
Russia plans new crypto rules and investor limits to curb unauthorized flows

Russia has banned the Ukrainian cryptocurrency exchange WhiteBit and its parent company, W Group, from operating within its borders. Authorities accuse the platform of transferring millions of dollars to Ukraine and assisting its military efforts through crypto-based donations.

WhiteBit and W Group Declared Undesirable

The Prosecutor General of Russia has officially labeled Ukrainian crypto exchange WhiteBit and its parent company, W Group, as “undesirable organizations.” This legal move blocks their operations in Russia, cutting off access to Russian users and partners.

Authorities claim that since 2022, WhiteBit transferred around $11 million out of Russia, including nearly $900,000 used to purchase drones. Officials say the company also supported Ukraine’s official donation platform, United24, by offering technical help.

WhiteBit, which was founded in 2018 by Ukrainian entrepreneurs, states it has over 8 million users and daily trading volumes of over $11 billion in spot markets. Despite its global presence, the platform now faces severe restrictions from Russia’s legal system.

Crypto Ties to Ukraine’s War Effort

Russian officials allege WhiteBit played a part in funding Ukraine’s military. The Prosecutor General’s Office stated that crypto assets were moved through “shadow schemes,” avoiding local oversight and sanctions.

The office also says WhiteBit’s systems were used to bypass currency controls, facilitating illegal fund withdrawals. Authorities claim these actions helped supply Ukraine with weapons, including drones used in combat.

“WhiteBit provided technical infrastructure for the operation of United24,” the official statement reads. United24 is a government-run platform created by Ukraine to collect global crypto donations for military and humanitarian purposes.

New Crypto Licensing Rules in Development

This ban comes as Russia speeds up efforts to tighten crypto regulation across its financial system. The Bank of Russia recently announced plans to introduce licensing rules for exchanges and digital depositories. These new rules aim to bring more control over crypto platforms and prevent them from engaging in unlawful transfers.

Platforms not working with digital securities will have access to a simpler licensing process. However, stricter prudential rules will apply to banks and brokers engaging in crypto-related activities. Officials say the changes will be implemented by July 1, 2027, following updates to current crypto legislation.

Ekaterina Lozgacheva, Director of Strategic Development at the Bank of Russia, stated, “We want to make it possible to sell mined crypto assets inside and outside of Russia legally.”

Crypto Investment Limits for Non-Professional Investors

As part of the broader framework, the Russian government is proposing investment limits for non-professional participants in the crypto market. Current discussions suggest a yearly cap of 300,000 rubles per intermediary.

Deputy Finance Minister Ivan Chebeskov said the government may adjust the cap based on future market feedback. “We will review any proposals to raise the threshold,” he stated in a local media report.

Finance Minister Anton Siluanov said the government aims to allow access only through registered platforms and keep transactions within a controlled volume. He added that draft laws should be submitted to the State Duma in the first half of 2026.

This move against WhiteBit reflects Russia’s growing attention to the role of digital currencies in international conflicts and financial security.

The post Russia Bans WhiteBit Over Alleged Crypto Support To Ukraine’s Military appeared first on CoinCentral.

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Filed under: News - @ January 26, 2026 8:34 am