Binance CEO Changpeng Zhao, also known as CZ, believes that Russia cannot use cryptocurrencies to avoid Western sanctions. According to him, cryptocurrency is too traceable, making it inappropriate for evading penalties.
Zhao stated that governments all around the world are growing better at tracing crypto transactions. As a result, he argues that a sensible individual would not attempt to use crypto for such goals.
Nonetheless, he stated that Binance strictly adheres to the sanction guidelines and will prohibit everyone on the suspension list. CZ went on to say that Binance would also block the accounts of anyone who is even remotely associated to those on the penalty list.
He did, however, claim that Binance considers freezing the assets of ordinary Russian consumers to be illegal. As a result, the exchange will hold firm in its decision not to bar all Russians. To demonstrate the organization’s desire to follow the rules, CZ stated that it is up to governments to decide which assets Binance should freeze or unfreeze.
Standing up to the war rather than the people
Unlike many organizations who are afraid to take a position on whether Russia was wrong to invade Ukraine, CZ stated that Binance is opposed to the war and the politicians that launched it.
He emphasized that Binance is not anti-people because the violence has affected both Ukrainians and Russians. Binance, he claims, aims to assist these folks in overcoming their issues.
He praised the company’s efforts to assist people in need, pointing out that Binance was one of the first to offer $10 million to aid Ukrainian refugees. CZ noted that Binance had already distributed the majority of this cash.
This follows Coinbase CEO Brian Armstrong’s statement that the exchange would not proactively block all Russian users. In a tweetstorm on March 4, Armstrong stated that Coinbase thinks that everyone deserves access to financial services until the law states differently.
He further stated,
Now that their currency has collapsed, some regular Russians are turning to cryptocurrency as a lifeline. Many of them are likely to oppose what their country is doing, and a ban would be detrimental to them as well. Having said that, if the US government decides to enforce a ban, we will, of course, abide by the rules.