Binance CEO says crypto cannot be used to escape sanctions

In an interview with CNN Business published last April 5, 2022, Binance CEO Changpeng Zhao also known as ‘CZ’ said that using crypto is ‘terrible’ for avoiding sanctions because it is traceable. This came in response to the warnings made by the US Treasury that cryptocurrency could be used by Russians to circumvent sanctions.  

Zhao continued with his opinion regarding the use of crypto to avoid sanctions, saying ‘If you look at the data, nobody smart does that. Crypto is too traceable, the governments around the world are increasingly very good at tracking crypto transactions. So crypto is not good for that’. 

In comparison to companies around the world limiting or even completely banning services in Russia in support of Ukraine, Binance will not ban all Russian users from trading on the platform since this is ‘unethical for [them] to do so’, said Zhao in a Bloomberg interview on March 2. 

‘It’s not our decision to make or freeze user accounts. Facebook hasn’t banned Russian users. Google has not blocked off Russia. The U.S. hasn’t done that. Also, from an ethical point of view, many Russians don’t support the war, so we should separate the politicians from the normal people’, Zhao said in his interview with Bloomberg.

According to reports made by Bloomberg, many crypto exchange platforms have been targeted and called out by governments such as the US to limit or even completely ban the access of Russian users. The goal of which is to prohibit illegal practices and prevent them from possibly avoiding sanctions. 

However, platforms such as Coinbase and Kraken have also joined Binance in strictly following regulations wherein only sanctioned parties will not be allowed to make use of their services. Those who are not a part of the sanction list will still be permitted to continue their trading practices. 

Both Russian and Ukrainian traders on the Binance platform are allowed to continue trading and using its services. Provided that regulations are followed and no sanctioned users or territories are involved, Binance will continue to offer its services. 

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