Since Russia began its invasion of Ukraine, some politicians 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. Earlier, the European Central Bank president had asked regulators to frame crypto regulations to stop Russia from using the technology to evade sanctions.
“Crypto is too small for Russia.”
The CEOs of two leading cryptocurrency exchanges have shared their thoughts on whether crypto can be an effective tool to circumvent sanctions. The Guardian quoted Binance CEO Changpeng Zhao (CZ) 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.” “There is probably only less than 0.3% of the global net worth in crypto today. This percentage applies equally to Russia,” Binance CEO explained.
Citing that anyone can scrutinize every crypto transaction, the Binance CEO stressed that cryptocurrencies are “not an effective tool for illicit activities.”
“Trying to sneak lots of money through crypto would be more traceable than using U.S. dollars.”
Coinbase CEO Brian Armstrong shared a similar sentiment. He tweeted on 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 are taking measures to stop Russia from using cryptocurrency to evade sanctions.