Changpen Zhao: Cryptocurrencies won't help Russia bypass sanctions

Changpen Zhao: Cryptocurrencies won’t help Russia bypass sanctions

Changpen Zhao, CEO of the popular cryptocurrency exchange Binance, believes that cryptocurrencies should not be considered as a tool to circumvent sanctions. The head of the trading platform shared his opinion in an interview for CNN

Against the backdrop of the escalating conflict between Russia and Ukraine, Russians are facing sanctions pressure. Among others, many crypto platforms, including Binance, have imposed restrictions on Russian citizens. Users from sanctions lists lost access to the crypto exchange.

Many Russians, faced with sanctions, turned their attention to cryptocurrencies. Digital assets turned out to be one of the few tools with which Russian citizens can freely conduct transactions on the financial market.

U.S. regulators, in turn, pointed out that they could prosecute crypto-exchanges and other representatives of the crypto-industry that help Russians circumvent sanctions.

Changpen Zhao believes that cryptocurrency should not be seen as an effective tool to reduce sanctions pressure. The CEO of Binance explained his point of view by the fact that there are already services on the market that will allow, if necessary, to trace episodes of the use of coins to circumvent restrictions.

“I think that using cryptocurrency to circumvent sanctions is nonsense. If you look at [market] data, you’ll see that smart people don’t do that. Cryptocurrencies are too easy to track”, the Binance chief noted, recalling the recent capture of criminals who had stolen Bitfinex cryptocurrency exchange assets in their hands.

Changpen Zhao also drew attention to the fact that his decision to refuse a complete withdrawal from the Russian market does not mean that the company he heads supports the actions of the Russian authorities in the context of the country’s conflict with Ukraine.

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Written by Renat
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