Russia Criminalizes Transactions with Ukrainian Exchange WhiteBIT

TLDR

• WhiteBIT designated as ‘Undesirable Organization’ on March 15, 2025.
• Violators may face 4 to 8 years imprisonment for transactions.
• Ban disrupts $2.7 trillion trading volume in cryptocurrency market.

Russia has criminalized interaction with the Ukrainian cryptocurrency exchange, WhiteBIT. On March 15, 2025, it was designated as an “Undesirable Organization”. This decision stems from alleged financial support of $11 million, including a $1 million allocation for drones, to Ukrainian military forces since February 2022.

The ban effectively makes all transactions with WhiteBIT illegal within Russia. Those caught defying the ban could face criminal charges, with potential imprisonment ranging from four to eight years. The Russian Prosecutor General’s Office announced the ban, highlighting WhiteBIT’s alleged involvement in ‘gray’ schemes enabling Russian fund withdrawals.

Enforcement Strategies Against WhiteBIT

Russian authorities, especially Rosfinmonitoring, are tasked with enforcing the ban. Their approach includes blocking WhiteBIT’s domains via Internet Service Providers (ISPs), monitoring bank transactions closely, prosecuting users who attempt to bypass restrictions, and freezing assets connected to Russian entities.

Details regarding the former roles or industry history of WhiteBIT executives have not been disclosed in primary announcements. However, the exchange is noted for its cross-exchange transactions and entanglements within geopolitical frameworks.

Implications for Cryptocurrency Assets

The ban encompasses all general cryptocurrencies traded on WhiteBIT, including major coins such as Bitcoin (BTC) and Ethereum (ETH). No specific altcoins or tokens have been singled out for sanctions, but the prohibition affects any transactions involving these digital assets for Russian users.

Although privacy coins like Monero continue to face separate ongoing bans within Russia, these restrictions are unrelated to the WhiteBIT action. Notably, the trading volume of $2.7 trillion has been disrupted by the ban, though this figure likely pertains to wider market effects rather than WhiteBIT alone.

Broader Regulatory Context

This action is part of Russia’s evolving stance on crypto regulations. Initially, sanctions in 2022 were more permissive regarding crypto use but have since become more stringent. The WhiteBIT ban represents the most aggressive exchange-specific action to date under these policies.

Plans to legalize regulated trading by July 2026 are underway, with the Russian Central Bank proposing conditions such as tax reporting for foreign platforms and retail caps. However, harsh penalties will be enforced for any illegal use, and these reforms aim to provide a regulated framework for crypto trading.