Ukraine crisis: Crypto exchange boss rejects Russian user ban

The boss of one of the world's biggest crypto-currency exchanges has ruled out restricting ordinary Russians from using the service.

Binance founder and chief executive Changpeng Zhao, told BBC Radio 4's Today programme: "Many normal Russians do not agree with war."

Major cryptocurrency exchanges have been asked by Ukraine to block Russian users.

One financial expert warned the war could become a "crypto conflict".

In a tweet sent on Sunday Ukraine's Deputy Prime Minster Mykhailo Fedorov asked major crypto-currency exchanges to block the addresses of ordinary Russian users, not just politicians.

The value of Bitcoin has risen 13% since the Russian invasion of Ukraine, according to the Reuters news agency.

There has been speculation Russian oligarchs may pour their money into cryptocurrencies to avoid sanctions and other restrictions.

And the Telegraph newspaper called cryptocurrency "Putin's sanctions-busting super-weapon".

But Mr Zhao said: "We're not against any people.

"We differentiate between the Russian politicians who start wars and the normal people.

"Many normal Russians do not agree with war."

"We don't control the industry.

"I can publish my sanction list, you can publish yours... Guess what? No-one else is going to follow.

"It just moves Russian users to other smaller platforms," he said.


'Financial freedom'

In a statement published earlier, Binance said it would not unilaterally freeze millions of "innocent users'" accounts.

"Crypto is meant to provide greater financial freedom for people across the globe," the company told BBC News.

Any unilateral ban would "fly in the face" of the reason crypto existed.

But "while minimising the impact to innocent users", it was taking the steps necessary to enforce sanctions.


'Libertarian values'

Mr Zhao said: "There are, I think, a few hundred individuals that are on the international sanction list in Russia - those are mostly politicians, et cetera.

"We follow that very, very strictly.

"And we are not in a position to sanction populations of people.

"We are not political - we are against war but we are here to help the people."

Several other cryptocurrency exchanges have also ruled out freezing all Russian accounts, according to a Vice News investigation.

Kraken's chief executive Jesse Powell, for example, said its platform would not freeze Russian accounts, which would go against Bitcoin's "libertarian values".

But Tom Keatinge, director of the Centre for Financial Crime and Security Studies (CFCS), at the Royal United Services Institute (RUSI) think tank, warned exchanges that failed to follow the rules might find themselves cut off from financial services.

"Those banks that provide services to crypto exchanges will be watching their clients' activities very carefully to ensure that they are diligently applying the checks required by the expanding sanctions regimes against Russia," he said.

The war in Ukraine could become the first meaningful "crypto conflict", Mr Keatinge told BBC News, as those seeking to "evade sanctions, protect their savings or avoid a collapsing banking system turn to cryptocurrencies for solutions".

Criminals laundered $8.6bn (£6.4bn) of crypto-currency in 2021, up 30% on the previous year, according to a report by blockchain data company Chainalysis published prior to the invasion.

And the Financial Times revealed: "Trading between the Russian rouble and crypto assets such as Bitcoin and Tether had doubled since the assault on Ukraine began, reaching $60m a day."


Crackdown

The increase comes as governments have sought to cut Russia out of the financial system.

On Wednesday, French Finance Minister Bruno le Maire said that the European Union will include crypto currencies in its sanctions against Russia, aimed at making Moscow's aggression against Ukraine as costly as possible.

He told journalists during a news conference that the sanctions against Russia were very effective and have "disorganised" the Russian financial system.

The British government has alsoannounced measures to crack down on money laundering by Russian "oligarchs and kleptocrats", including new powers to seize crypto assets.

Chainalysis's Caroline Malcolm told BBC News: "As with the traditional financial system, Russian oligarchs could leverage crypto-currency to evade the sanctions."

But it was unlikely designated persons under sanctions would move around large quantities of cryptocurrency now.

"Russia's elite and financial authorities have been preparing for sanctions for some time," she said.

"To the extent that cryptocurrency may be used to evade sanctions related to this crisis, it likely would have happened slowly over the past several months."

And analytics tools used for following money were more effective than those "capable of disrupting Russia's use of a network of traditional bank wires or physical cash to evade sanctions".

Tom Robinson, of blockchain analysis company Elliptic, said crypto-currency could be an attractive haven for the wealth of oligarchs as it could not be seized and no-one could prevent it being moved.

But it was "highly traceable, which means that they would find it difficult to spend anywhere that sanctions are enforced".

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THIS ONE NA ALLY

Binance founder and chief executive Changpeng Zhao, told BBC Radio 4's Today programme: "Many normal Russians do not agree with war."

Immediately I saw this, I've already know the direction he'll take. Not necessarily because China & Russia are ally but because Chinese don't play with their livelihood.

Business is business

Make peace not war

The source is BBC, but
it isn't western propaganda since it favors Putin.

If you hate western media so much go live in china or North Korea

Somehow, I agree with their stance. There are many citizens if Russia who do not want the war. They have even been arrested on account of protesting against it.

...many of such are crypto investors. Doesn't it amount to double jeopardy for them?

Crypto is a fraud scheme in the first instance.

Is this even possible to block thier addresses

it's not possible for some platforms

God bless Putin

Crypto is playing a pivotal role in the Ukraine/Russia crises and although at first crypto people joined the popular idea of donating crypto coins to Nazi Ukraine, but after most of the facts started coming out it became obvious that Crypto can not be used by the state as a weapon of sanctions.

Crypto represents freedom from centralisation of power and wealth.

Also, the West is currently losing the media war. They also lost India and Chnises support. They are now desperate for more allies.

Their sanctions will not last for more than two months because they were all made from emotions and not reasoning.

The rest of the world is gradually falling in line with #IstandWithRussia and #IStandWithPutin trending in their own twitter worldwide.

The Western zombies here on Nairaland will start to disappear one by one and soon the West will have no friends left to cheer them as they push for war and more blood.

Thank you CZ

the ban would have defile everything crypto stands for.
crypto have been used to fund something much worse.

crypto is not your regular fiat and not controlled by the government.

Nice business decision.

Forget sentiments but the guy is right....Cryptocurrency is not supposed to be partisan but open for everyone.

sotall:


Crypto is a fraud scheme in the first instance.

Illiterate

This is a very bold and beautiful decision by the CEO of Binance

In fact he has earned my support and respect more

The west are playing double standard inn this issue

I cannot,and will never support making ordinary citizens suffer because of decisions made without their consent and is way above their pay grade.
The high handedness of America and it's allies shows they've got no honour and respect for processes and can just do whatever they want because they think they control the world.
All these sanctions that'll have Russian ordinary people suffer and freezing their oligarchs assets around the world is highly stupid,unethical and i will think there's something else making them do this asides the invasion of Ukraine, else why?
Decisions and actions like this make me give support to Russia to bomb Ukraine to kingdom come and they're justified honestly.

It will cripple his company if he does

Mykhailo Fedorov na God go punish u for tht foolish statement.

sotall:


Crypto is a fraud scheme in the first instance.

Person weh buy Btc at 69k done drop quote

NATO and EU are the most hyprocritical organization have ever seen in my life.

They put santion on Russia's Nordstram 2 and left Nordstream 1 still working, meaning regardless of all the santions Europe still buy Russia's oil daily and as oil price goes up, Russia's is bound to earn more because of sanctions NATO and EU had hit Russia with.

Oil revenue is main Russian source of income and Europe can't do without Russia's oil. That means if my man (Putin) decides to pull the plug on Nordstream 1 — the whole Europe will suffer but for now Russia still get paid daily. And keep in mind; India is bidding for Nordstream 1, that is why they are yet to condemn Russia's operation in Ukraine.

Haha long live Putin.

[img]https://c./HjUdWiHjvbYAAAAd/eating-popcorn-watching.gif[/img]

Good decision by Binance!

Jackanda1:
The source is BBC, but
it isn't western propaganda since it favors Putin.

Una go cry tire. Go and check those that originated Crypto. It's the Russians. You cannot beat them in their own game.

Putin will not blink.

It's norm that's the sole purpose of Crypto

Wise choice..

If you ban Russia from crypto, get ready to say bye bye bitcoin. Next support at $12000

If I were you, I will login to my crypto app now and do a quick trade and withdrawal Sharp Sharp...No time!