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Binance, Coinbase Explain Why Cryptocurrency Won’t Help Russia Evade Sanctions

News Feed - 2022-03-07 01:03:23

Binance, Coinbase Explain Why Cryptocurrency Won"t Help Russia Evade Sanctions


The chief executives of two major cryptocurrency exchanges, Binance and Coinbase, do not believe that cryptocurrency is an effective tool to help Russia evade Western sanctions. CEOs of Binance and Coinbase Say Crypto Not Useful at Evading Sanctions


Since Russia began its invasion of Ukraine, governments worldwide have raised concerns that cryptocurrency could be used to circumvent sanctions placed by Western nations.


The CEOs of two leading cryptocurrency exchanges have shared their thoughts on whether crypto can be an effective tool to circumvent sanctions. Binance CEO Changpeng Zhao (CZ) was quoted by the Guardian as saying: Currently, the media and politicians are spending a lot of effort and focus on crypto and sanctions. The truth is, crypto is too small for Russia.


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


The Binance boss added: Another reason Russia would not want to use crypto is that it is too traceable. And governments around the world are already very adept at tracking it.


Furthermore, Zhao said using privacy-focused cryptocurrencies, such as monero, would not work either because the market capitalization of XMR is $3 billion compared with Russia’s GDP of $1.5 trillion.


Citing that every crypto transaction can be scrutinized by anyone, the Binance CEO stressed that crypto assets are “not an effective tool for illicit activities.”


Coinbase CEO Brian Armstrong shares a similar sentiment. He tweeted Friday: We don’t think there’s a high risk of Russian oligarchs using crypto to avoid sanctions. Because it is an open ledger, trying to sneak lots of money through crypto would be more traceable than using U.S. dollars cash, art, gold, or other assets.


Meanwhile, the G7 countries, the European Union, and several other nations worldwide aretaking measures to prevent Russia from using cryptocurrency to evade sanctions.


The U.S. Treasury Department issued a report last year stating that crypto reduces the efficacy of U.S. sanctions. The department is currently monitoring Russian efforts to evade sanctions using cryptocurrency. Tags in this story Binance, bitcoin sanctions, Brian Armstrong, Changpeng Zhao, Coinbase, crypto sanctions, cryptocurrency sanctions, CZ, evade sanctions, Russia, russian sanctions


Do you think cryptocurrency can help Russia evade sanctions? Let us know in the comments section below. 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. Ukraine Uses Donated Crypto to Pay for Military Supplies — Government Says $50 Million in Crypto Raised in a Week FEATURED | 10 hours ago Ukraine Crypto Donations: Government Now Accepts Over 70 Crypto Assets FEATURED | 22 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleWharton Professor Urges the Fed to ‘Bite the Bullet’ and Defend the US Dollar — Warns About Bitcoin Taking Over Next articleIMF Warns Ongoing War in Europe Will Have a ‘Severe Impact on the Global Economy’ Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItVenezuela Might Be Affected by Russian Banks" SWIFT Suspension


Analysts from Venezuela have expressed their worries about the expulsion of a number of Russian banks from SWIFT, an international messaging system that allows the interconnection of banks. These measures could affect the finances not only of Venezuela, but also ... read more.Ukraine"s Cyberpolice Force Starts Accepting Cryptocurrency Donations Leaked Images Suggest Opensea Plans to Add Solana-Based NFT Support While the Fed Monitors the "Ukraine Situation Closely," Powell Still Expects a Series of Quarter-Point Rate Hikes US Senator Urges Regulators to Increase Scrutiny on Crypto as It Risks Undermining Sanctions Against Russia

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