Background and Regulatory Action
Russia's Prosecutor General's Office has announced the designation of Ukrainian cryptocurrency exchange WhiteBit and its parent company W Group as unwelcome entities, sparking significant attention within the crypto industry.
Allegations Against WhiteBit
According to official statements, WhiteBit is accused of facilitating illicit fund transfers out of Russia, involving approximately $11 million, including $900,000 allegedly used for drone procurement. Russian authorities also claim the platform collaborated with Ukraine's Ministry of Foreign Affairs to support the United24 crypto donation initiative.
Legal Framework and Future Oversight
Currently, no cryptocurrency exchanges are officially registered in Russia. However, the Central Bank aims to finalize legal amendments by July 1, 2027, to enhance oversight of crypto market intermediaries and hold them accountable for illegal activities.