Binance CEO Chengpeng Zhao Says ‘Crypto Terrible for Avoiding Sanctions’: Here’s Why

Chengpeng Zhao has pointed out that while there is still scope for crypto transactions to be traced, cash transactions can happen without any trail.

By Radhika Parashar | Updated: 30 March 2022 18:33 IST

Binance CEO Chengpeng Zhao Says ‘Crypto Terrible for Avoiding Sanctions’: Here’s Why

Photo Credit: Reuters

Chengpeng Zhao overtook India’s Mukesh Ambani to become Asia’s richest this year

Highlights

Chengpeng Zhao is the CEO of Binance, one of the world’s largest exchange
Zhao’s view resonates with a recently released report by US government
Fiat is reportedly preferred choice for criminals, not crypto

Chengpeng Zhao, the CEO of Binance crypto exchange, has defended crypto against blames of allowing sanctioned entities evade penalties. In recent times, several Russian individuals and organisations have made it to the Sanctions list of many western nations after Russia waged a war on Ukraine in February. World leaders, at this point, are eyeing the crypto sector to ensure that these sanctions are not violated via cryptocurrencies. Zhao, in a tweet, has said crypto is terrible for avoiding sanctions.

The richest man in Asia, Zhao, points out that while there is still scope for crypto transactions to be traced, cash transactions can happen without leaving any trail whatsoever.

Crypto is terrible for avoiding sanctions for a simple reason. It is traceable.

Cash on the other hand...
— CZ :large_orange_diamond: Binance (@cz_binance) March 30, 2022

As per recent reports, the Phuket Tourist Association (PTA) and the Bank of Thailand (BOT) were considering accepting crypto payments from Russia.

The move could have helped Russian crypto holders, especially the sanctioned entities, to liquidate their crypto assets in Thailand.

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Thailand, however, quashed the idea by banning the use of cryptocurrencies as payment option for commodities and services starting April 1.

Despite rising concerns about cryptocurrencies being rampantly used by criminal activities such as money laundering, fiat is still way ahead in terms of being the preferred choice for illegal activities.

The use of crypto assets for money laundering continues to be significantly less prevalent than the use of fiat cash and other more traditional means, recently released reports from the US government said.

Hillary Clinton Asks Crypto Exchanges to Freeze Russian Accounts

In the last one month, several crypto exchanges operating from the US were asked to freeze crypto wallets linked to sanctioned Russian entities.

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Further reading: Binance, Chengpeng Zhao, Cryptocurrency, Russia, Ukraine Russia War

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More