WhiteBIT said Russia’s decision to designate the crypto exchange as an “undesirable organization” does not affect its operations, citing a full market exit from Russia and Belarus in 2022 and continued expansion elsewhere.
The statement followed a move by Russia’s Prosecutor General’s Office in late January to blacklist WhiteBIT and related entities. Under Russian law, the designation effectively bans activity in the country and exposes individuals and organizations to legal risk for cooperation.
WhiteBIT said the action reflects political pressure rather than current business activity. The exchange stressed it has not served Russian users for several years and does not maintain infrastructure, staff, or marketing in the country.
Russia’s decision and official claims
Russian authorities said WhiteBIT was involved in facilitating the transfer of funds out of Russia and accused the platform of supporting Ukraine-linked initiatives after the start of the war. State statements referenced alleged financial flows tied to Ukraine’s defense efforts during 2022.
The “undesirable organization” label goes beyond a simple website block. It allows authorities to restrict access, limit promotion, and pursue administrative or criminal cases related to cooperation, depending on enforcement.
Russian media framed the move as part of a broader effort to tighten control over foreign crypto platforms, particularly those perceived as aligned with Western or Ukrainian interests.
WhiteBIT’s response and business trajectory
WhiteBIT said it voluntarily exited Russia and Belarus in 2022 following the invasion of Ukraine, complying with internal risk policies and international sanctions expectations. The company said the decision led to a sharp short-term loss of users.
According to WhiteBIT, the exchange later rebuilt its user base through expansion in Europe, Asia, and other regions, reporting roughly eightfold growth in global activity since the exit. The company did not provide detailed metrics but described the growth as organic and regionally diversified.
WhiteBIT said the Russian designation does not change its compliance posture or strategic priorities. The exchange continues to focus on regulated markets, partnerships, and localized services outside Russia.
Broader context for crypto platforms
The case highlights growing fragmentation in the global crypto market, where platforms face sharply different regulatory and political environments across jurisdictions. For exchanges, past geographic exposure can still carry consequences years later.
Russia has increasingly used legal tools to restrict foreign tech and financial firms since 2022, including media groups, NGOs, and digital platforms. Crypto exchanges have become a newer focus amid concerns about capital flows and sanctions evasion.
For WhiteBIT, the company framed the move as retrospective rather than operational, emphasizing that its business has already shifted away from Russia and toward international growth.
