Binance, Coinbase Explain Why Cryptocurrency Won’t Help Russia Evade Sanctions – Featured Bitcoin News

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The leaders of two major cryptocurrency exchanges, Binance and Coinbase, do not believe that cryptocurrency is an effective tool to help Russia avoid Western sanctions.

Binance and Coinbase CEOs Say Crypto Is Not Useful in Avoiding Sanctions

Since Russia began its invasion of Ukraine, governments around the world have expressed concern that cryptocurrency could be used to circumvent sanctions imposed by Western nations.

The leaders of two major cryptocurrency exchanges have shared their thoughts on whether crypto can be an effective tool to avoid sanctions. Binance CEO Changpeng Zhao (CZ) was quoted by the Guardian as saying:

Nowadays, the media and politicians spend a lot of effort and focus on crypto and sanctions. The truth is, crypto is too small for Russia.

“If we look at crypto adoption today, there are probably about 3% of the global population with some kind of crypto exposure (i.e., owning some crypto),” Zhao continued. “Of those, most have only a small percentage of their net worth in crypto. Less than 10% on average. So, it’s probably only less than 0.3% of global net worth in crypto today. This percentage applies equally to Russia.”

The Binance chief added:

Another reason that Russia would not want to use crypto is that it is too traceable. And governments around the world are already very capable of tracking it.

In addition, Zhao said that using privacy-focused cryptocurrencies as a currency will also not work because the market capitalization of XMR is $ 3 billion compared to Russia’s GDP of $ 1.5 trillion.

Citing that any crypto transaction can be examined by anyone, Binance’s CEO stressed that crypto assets are “not an effective tool for illegal activities”.

Coinbase CEO Brian Armstrong shares a similar sentiment. He tweeted on Friday:

We don’t think there is a high risk that Russian oligarchs will use crypto to avoid sanctions. Because it is an open ledger, trying to steal a lot of money with crypto would be more traceable than using US dollars in cash, art, gold or other assets.

Meanwhile, the G7 countries, the European Union and several other nations around the world are taking steps to prevent Russia from using cryptocurrency to avoid sanctions.

The U.S. Treasury Department released a report last year stating that cryptocurrency reduces the effectiveness of U.S. sanctions. The department is currently monitoring Russian efforts to avoid sanctions using cryptocurrency.

Tags in this story

Binance, bitcoin sanctions, Brian Armstrong, Changpeng Zhao, Coinbase, cryptocurrencies, cryptocurrencies, CZ, avoid sanctions, Russia, Russian sanctions

Do you think that cryptocurrency can help Russia avoid sanctions? Let us know in the comments section below.

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Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection between economics and cryptography.

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