While discussions about the legalization of virtual assets have been ongoing in Ukraine for years, local companies have already become notable players on the international stage. One such example is the crypto exchange WhiteBIT, which is one of the leaders in the industry in Europe and unites a team of over 1,200 specialists worldwide.
How does WhiteBIT differ technologically from its competitors? How is the company preparing to work under the new European MiCA rules and planning to enter the US market? And are there any prospects for the crypto industry in Ukraine in the absence of clear legislation? We talked about this and much more with the founder and president of the WhiteBIT Group blockchain solutions ecosystem, Volodymyr Nosov.
Based on your background, you had no experience in either IT or finance before WhiteBIT. Why did you decide to go into this business?
I have always been attracted to innovative business. Even while working in distribution and trade, I was interested in technology, following the emergence and development of many startups and tech companies. When I first learned about blockchain technology, digital assets and mining, I immediately plunged headlong into learning new things. In this niche, I was first of all captivated by the prospects and scale. I realized that blockchain and cryptocurrencies are the future, because they are the beginning of a new digital economy. Cash and fiat are already outdated forms of money, and in the future more and more payments will be made in cryptocurrency.
Today, we are witnessing the rapid development of digital assets. For example, about 85% of companies with an annual turnover of over $ 1 billion use them to attract new customers and implement innovations. In general, according to various sources, almost 570 million people around the world are already actively using cryptocurrencies.
How would you explain to people who have never used WhiteBIT how your exchange is technologically different from similar projects?
In terms of technology, three factors are key for us: innovation, speed and security. Our technical core is capable of processing over a million orders per second, making WhiteBIT one of the fastest exchanges in the industry.
Regarding security, we store 96% of our assets in cold wallets and have a number of security certifications. In particular, last year WhiteBIT became the first crypto exchange in the world to receive the highest level of certification according to the Cryptocurrency Security Standard (CCSS). This standard covers all aspects of the exchange’s operations — from protecting user assets to internal procedures and protocols.
We always analyze the market and user needs to create unique products that distinguish us from others. This is how QuickSend appeared — a function of instant and commission-free cryptocurrency transfers within the exchange using only the user's exchange nickname or using Shake-to-Send, which allows you to transfer funds in seconds by simply "shaking" your phone. Another example is Autoinvest, a tool that automates regular cryptocurrency purchases using the DCA (Dollar Cost Averaging) strategy, helping you invest systematically and without emotions, minimizing the impact of volatility.
Overall, WhiteBIT is one of the few product IT companies from Ukraine, such as Grammarly, Petcube or MacPaw, that successfully operates in global markets and has clients from more than 150 countries. WhiteBIT is a member of the Strategic Council of the Dia.City United technology business association.
How many people currently work at WhiteBIT? Is your head office still in Vilnius? Do you plan to open an office in Kyiv or other Ukrainian cities?
Currently, the team has 1200+ specialists from different countries of the world. One of the company's offices is indeed located in Vilnius. In Ukraine, we cooperate with a large number of highly qualified specialists. So far, there are no necessary conditions for opening a full-fledged local office, in particular, the status of virtual assets is not defined.
Many companies now require employees to be in the office at least a few times a week. What is your opinion on remote work?
As I mentioned, the Ukrainian team performs its tasks mainly remotely. We have a large company, and different approaches to the work format have long been formed — depending on the location of the employee and his specialty. This approach allows us to take into account the real needs of teams in different regions.
Recently, there have been fewer projects related to cryptocurrencies in Ukraine, the Kuna crypto exchange has ceased commercial activity, and Trustee has actually stopped registering new clients. Given this, how do you generally assess the Ukrainian virtual asset market? Does it have prospects, given the problems with regulation?
The lack of regulation, of course, creates uncertainty for market players. Some wait and see, while others act at their own risk and fear. Without regulation, the industry does not completely pause its development, but at the same time a number of processes are slowed down, for example, its institutionalization. It is difficult for crypto companies to establish interaction with the banking sector, it is not easy to build long-term plans. Users also need more protection.
In the context of regulation, I want to emphasize that for the Ukrainian market, it is important not only to have a legitimate environment, but also the key principles of the future law. Namely, what rules will be enshrined in the new document, what regulatory mechanisms will it provide, what guarantees will be established for market players and owners of virtual assets. The future prospects of the crypto market in Ukraine will largely depend on this. For example, will the law protect national business from the appearance on the market of participants associated with the aggressor country? What will be the tax burden on the industry and will it not scare away investors? It is very important that the state listens to the market and takes into account its specifics, and not simply introduces standard approaches — even if they are based on pan-European regulations, which at the stage of the emergence of the virtual assets market are neither politically nor from a business point of view effective.
The law on the legalization of cryptocurrencies, promised this year, has not yet been passed. Based on your assessment, do you expect it to be passed this year?
Regulation of virtual asset markets is a global trend. And it is set by the most powerful players in this market — the USA, the EU countries and the Asian region. Therefore, the rest of the world simply cannot remain aloof from this process. We are already observing that even the most business-friendly jurisdictions among the island states are already implementing their own regulation.
The situation is similar in Ukraine. The law is needed here by various stakeholders. First, the state itself — both for external obligations (within the framework of the IMF agreement) and for its own fiscal interests. Second, the law is needed by business — for global economic integration, because this is a large market in which Ukrainians can and should earn. And finally, the law is needed by our citizens - at least for the security of virtual assets and the ability to fully manage them in a civilized manner.
As for the specific timing of the adoption of this law, it is difficult to predict. The legalization process has been going on for four years — since 2022, when a relevant law was already adopted in Ukraine, but it has not yet entered into force. To be honest, I am quite cautiously optimistic about the forecasts of some experts regarding the adoption of this law by the end of 2025.
Do you consider the proposed option acceptable for the development of the virtual assets market?
Bill No. 10225-d, which was supported by the relevant parliamentary committee on finance in the spring, did not become the final, perfect document that the market expected, although this version contained a number of positive ideas.
Business is primarily concerned with ensuring market stability. Therefore, a single regulation should be established for the long term, and the state should guarantee its immutability. Disputes among the main stakeholders regarding the identity of the regulator indicate a lack of consensus on this issue, which creates a risk of market turbulence if a truly balanced decision is not laid down as the basis of the law.
Secondly, this is a question of taxation: in an effort to collect as many taxes as possible today, the state risks losing both taxpayers and the object of taxation itself tomorrow, because virtual assets have no borders and operate wherever the best conditions are offered.
Given your jurisdiction in Lithuania, are you currently compliant with the updated MiCA legislation and do you find it effective?
MiCA is often perceived as a kind of universal guide on virtual assets for everyone. But in fact, this regulatory act is a rather generalized guideline. It contains general requirements unified for all EU countries regarding types of crypto assets, regulatory entities, guarantees for consumers of their services, etc. The provisions of the Regulation should be used as the basis for national regulation by each country, but in a generally recognized coordinate system. Therefore, it will be possible to speak globally about effectiveness or ineffectiveness only when European countries build their own legislation based on MiCA.
Currently, during the transition period, our operating companies in Europe are providing services to European clients in accordance with the requirements of the MiCA Regulation. In parallel, the process of obtaining WhiteBIT authorization in accordance with the requirements of the MiCA is ongoing. I hope that you will hear positive news from us in the near future.
Exchanges are quite often targeted by hackers. Have you had any security incidents and how did you resolve them?
Throughout the entire history of the WhiteBIT exchange, we have not had a single incident where the security of users' funds was at risk. When answering the question about our technical advantages above, I already emphasized the priority of security for us. We have created a technical infrastructure that is resistant to external threats, thanks to the work of our internal IT team. All developments are carried out exclusively in-house, as dependence on external contractors and third-party software often leads to hacks or other technical problems.
What is WhiteBIT's liability to users in the event of loss of assets? Is there a transparent compensation policy?
Everything is done in accordance with legislation and regulatory requirements — both from a legal and financial point of view. As I have already emphasized, we store users' digital assets on a multi-tiered infrastructure of cold and hot wallets, which is developed and maintained by our internal team.
We adhere to a transparent compensation policy, which involves individual consideration of each situation, taking into account all reasons and circumstances.
In this context, I would like to emphasize how important it is for users to follow basic digital security rules. In particular, not to neglect elementary cyber hygiene measures to protect their account and personal data: activating two-factor authentication and an anti-phishing mechanism for email, using unique passwords, prohibiting transferring access to third parties, etc.
We provide all the necessary tools for safe use of the platform, but ultimate safety also depends on the awareness and actions of the user himself.
Who carries out market making operations on the WhiteBIT exchange? How many of these market makers are there and what conditions must they meet?
Our market makers include large trading companies, asset managers, and hedge funds from around the world.
To become a member of our market maker program, you must complete compliance procedures, including KYB (Know Your Business). Regarding financial conditions: for spot market makers, the entry threshold is a trading volume of at least $100 million in the last month. The minimum requirement for futures trading is from 0.1% to 2% of the market maker's volume of the total trading volume on the exchange per month.
I would like to add that we are constantly expanding the capabilities of our users and partners and listening to their requests. Over the past two years, we have added a colocation option for faster trading on the exchange and launched an improved Portfolio Margin risk management system, thanks to which traders can use their capital more efficiently. We have also implemented support for sub-accounts for convenient distribution of trading strategies. In addition, we have entered into partnerships with custodial providers and prime brokers to speed up the onboarding process, as well as increase the security and efficiency of market maker program participants.
You have previously announced plans to enter the US market. What barriers are currently preventing you from doing so, and are you not afraid of repeating the fate of exchanges that have been persecuted there?
We are actively working in this direction, many processes have already been launched to achieve this business goal. We have gathered our local team here and expect to hear news about the launch of WhiteBIT products in the USA by the end of the year.
The states carefully protect their market and citizens from unauthorized companies that try to operate on their territory, like modern pirates. We enter the US market exclusively legally — the process is complicated, but it allows us to minimize a number of potential risks.
Do you consider cryptocurrency a competitor to the classical financial system?
I assess digital assets not as competition, but as the future of the financial system. Large and small businesses have already appreciated all the opportunities that cryptocurrency provides — speed of payment, lower fees, barrier-free in terms of geography. Today, digital assets can be used to pay virtually on a par with fiat money — in restaurants, taxis, buying real estate. And in the USA, Canada, and some European countries, bitcoin is accepted for paying local taxes.
I would like to add that cryptocurrencies are not only a means of payment, but also an asset for investment and accumulation. Along with large companies, more and more ordinary citizens are investing in Bitcoin, especially young people who are growing up in an environment of modern gadgets and technologies.
Digital assets do not compete with the traditional financial system, but transform and improve it, contributing to the construction of a new digital economy with more efficient approaches.
Many exchanges are already testing AI integration. How is WhiteBIT doing with this? Can you share any interesting cases?
We use AI in various ways. For example, to enhance security — to prevent and detect potential fraud in a timely manner. Machine learning algorithms help analyze transactions and detect suspicious activity in real time.
We are also seeing the effectiveness of AI for cybersecurity systems. We are implementing intelligent systems to prevent and detect cyberattacks and potential vulnerabilities early.
We have also integrated AI into compliance procedures, including automating customer due diligence processes, ensuring rapid compliance with regulatory standards. This technology helps minimize human error, increase the accuracy of checks, and speed up the process.
Our development team uses AI to write some of the code. And, of course, this technology is actively integrated into operational work.
Where do you see WhiteBIT in 5 years: a global player or a strong regional exchange with a narrow specialization?
We have been operating as a global player for several years now. Our strategy is aimed at further expanding our global presence and strengthening our positions in various markets. While we always take into account the specifics and needs of each region, our main focus remains on global expansion.