CZ of Binance says crypto is the worst place to be for sanction dodgers

Changpeng Zhao, CEO of cryptocurrency exchange Binance, has reiterated what financial technology experts have said, that using crypto and blockchain for avoiding sanctions is the very worst thing you can do.

Changpeng Zhao (CZ) was speaking on CNN, and reacted to a question implying that crypto was being used to dodge sanctions, and that the EU lawmakers were pushing for new tracing rules.

CZ was very dismissive of the claim and said that intelligent people just wouldn’t attempt such a thing. He said:

“On using crypto in order to avoid sanctions – I think that’s a myth. If you look at the data, nobody smart does that. Crypto is too traceable. The governments around the world are increasingly very good at tracing crypto transactions. So crypto is not good for that.”

CZ is only repeating what the foremost experts on crypto, blockchain, and financial technology are saying, and that is that definitively, crypto is eminently more traceable than fiat currencies such as the dollar.

He also quoted Chainalysis in order to back up his point.

“If you look at Chainalysis data, last year, only 0.15% of crypto transactions may be potentially related to illicit activities, where the United Nations published the data where 2 to 5% of fiat transactions, or what we call the banking industry, are associated with illicit activities. So the data shows that crypto is much, much safer, yet everybody is focused on crypto sanctions. Nobody is talking about banks, cash, oil, etc.”

When pressed to say which side Binance took on the war in Ukraine, CZ said that his company was totally against the war. He said that Binance upheld all sanctions that were required by government, but he drew the line at banning normal Russian citizens who were not on any sanctions list. His company is taking the same line as Coinbase on this issue.

Opinion

Mainstream media continues to slavishly publish the comments of crypto detractors such as Senator Elizabeth Warren and Christine Lagarde, head of the European Central Bank. Their comments appear to brook no argument and are published as is.

It appears that all those who are pro crypto can do is to publish the facts and let them speak for themselves. Without any question whatsoever, the banks have been using fiat currencies for illicit purposes on numerous occasions, for which they have been fined heavily. 

However, this hardly ever appears in the public eye, and banks just carry on as before. Although not for too much longer. The cryptos such as Bitcoin, that can’t be manipulated by any government or political organisation, will eventually replace the incumbent fiat system. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.