Russia Targets Crypto’s Shadow War Pipeline as WhiteBit Faces Sweeping Ban

Core Viewpoint - Russia's Prosecutor General has labeled Ukrainian cryptocurrency exchange WhiteBit as an "undesirable organization," accusing it of facilitating illegal fund transfers and financing Ukraine's military efforts [1][2]. Group 1: WhiteBit's Operations and Accusations - WhiteBit's management allegedly transferred approximately $11 million to Ukraine since 2022, including nearly $900,000 for drone purchases [1]. - The Prosecutor General's Office claims WhiteBit provided technical support to United24, Ukraine's state-backed crypto donation platform, and engaged in "shadow schemes" for illicit fund withdrawals [2]. - Founded in 2018, WhiteBit has over 8 million active users and reports daily spot trading volumes of $11 billion, with futures trading reaching up to $40 billion [2]. Group 2: Regulatory Environment in Russia - The crackdown on WhiteBit coincides with Russia's efforts to formalize crypto regulation, with the Bank of Russia outlining new licensing requirements for crypto exchanges and digital depositories [3]. - Banks and brokers dealing with cryptocurrencies will face special prudential requirements to mitigate risks to traditional financial activities [4]. - New measures are expected to take effect by July 1, 2027, following amendments to Russia's crypto legislation [5]. Group 3: Investment Limits and Financial Safeguards - Proposed regulations will allow non-professional investors to invest in digital currencies but within strict annual limits, currently suggested at 300,000 rubles per year per intermediary [6]. - The Deputy Finance Minister indicated that any proposals to raise this investment threshold would be considered, reflecting a balance between investor access and financial safeguards [7].