Cryptocurrency is too small for Russia - Binance CEO

[Accardo]

Recently, Changpeng Zhao the CEO of Binance disclosed some relevant reasons why he refused to sanction customers from Russian. He mentioned that cryptocurrency have nothing to do with the War and nothing will change if the Russians are sanctioned from using Binance Exchange. Instead the Government should focus on Banks that controls  99.7% of the money. And he noted that cryptocurrency only controls 0.3% of the global net worth today. So the whole energy transferred to bitcoin on this Russia and Ukraine crisis should be channeled on some other things like Oil and Gas instead of bitcoin or cryptocurrency.

Another important point of view he stated is that if it's a good idea to ban Russians in other countries like Paris? they are innocent and should not suffer for what they do not control.

Lastly,

The fact remains that the traditional financial system is far more susceptible to money laundering and sanctions-busting than crypto will ever be.

https://www.binance.com/en/blog/leadership/ukraine-russia-sanctions-and-crypto-421499824684903532?ref=P3W07KOS&utm_source=BinanceLinkedIn&utm_medium=GlobalSocial&utm_campaign=GlobalSocial

[The Cryptovator]

CZ took the right decision. I don't support war, nor Russia or Ukraine. Decentralized cryptocurrency is borderless and unstoppable, so even Binance CEO stopping trading in Russia can't freeze the funds. As a result, Russian people would use other exchanges or any other method since Cryptocurrency is legal there. If Binance froze funds and prevent Russian traders to use them, then they will lose the faith of traders. Any country would fall into this situation at any time, it doesn't prove citizen or Binance user's mistakes. War shouldn't affect Cryptocurrency anyway.

[dkbit98]

Never trust anything that CZ is saying, he is like chameleon and changes his story every day, so I won't be surprised if he comes in few weeks with announcement of blocking all accounts from Russia.
From news I was reading they are going to start working with Chinese banking system with their own credit cards, and they are totally separate from swift and mastercard/visa.
Nobody is talking about banning China because they can't, and CZ is from that same country.

[Ziskinberg]

If there's no mandate from the regulators of Binance to ban Russia on their trading platform, then he has no legal responsibility. It's a good idea not to ban the traders because we are talking here of decentralized currency and in the first place the main purpose of crypto is to get free'd up from the government full control and manipulation.

[Accardo]

If there's no mandate from the regulators of Binance to ban Russia on their trading platform, then he has no legal responsibility. It's a good idea not to ban the traders because we are talking here of decentralized currency and in the first place the main purpose of crypto is to get free'd up from the government full control and manipulation.

Many people quoted him on LinkedIn regarding what you just said; if the exchange was decentralized he wouldn't have been making all these explanation in the first place. But, we are not yet ready for the decentralized exchange because of the use cases of CEX and many people preferred it over the DEX. Nothing can be done to change the minds of the people so we just have to adapt to the disputes of using a centralized exchange.

War shouldn't affect Cryptocurrency anyway.

Cryptocurrency is not the cause of the war and I don't see any reason why the Government is all about cryptocurrency traders or users on CEX. Freezing of their account. The enemy is Putin and not innocent Russian citizens. They should reshape their focus on cryptocurrency and find other important issues that can be used to hold against Putin. At least to freeze the war.

[moderator's note: consecutive posts merged]

[Despairo]

Few years ago Binance offer trading without KYC up to 2 BTC/day, but last year they force their citizens to submit KYC due to SEC and government enforcement.
Now he said Binance refuse to sanctions on Russian citizens right now, but we do don't know what will happen if the war going far and widely. What if US and Europe force Binance to sanctions on Russian? Of course he will do that since he doesn't have any choice.

Rule number 1: Don't trust anyone with your funds.

[rat03gopoh]

Few years ago Binance offer trading without KYC up to 2 BTC/day, but last year they force their citizens to submit KYC due to SEC and government enforcement.
Now he said Binance refuse to sanctions on Russian citizens right now, but we do don't know what will happen if the war going far and widely. What if US and Europe force Binance to sanctions on Russian? Of course he will do that since he doesn't have any choice.

Rule number 1: Don't trust anyone with your funds.

That is a different context. In the first case, binance is here as the main role that is the target of KYC implementation.
Whereas in the case of the invasion of ukraine, binance is just one of many individual financial services that are completely uninvolved with the political situation of any country. If any government wants to pressure this kind of service to take sides, they have to have a logical reason to block customers who don't violate anything.

[Husires]

CZ  is a businessman and is looking for profits for his platform. He is not interested in decentralization, but rather in profits.
Thus, his views will change according to the trends that bring him those profits.

• If supporting Ukraine means more money for them, they will, and it has happened recently
• If they find that they may benefit from sanctions on Russia, they will support it.

Binance is starting to turn to centralization daily, and therefore they will be sad about the statements, especially since many countries can withdraw the them trading license, which is something that will harm the platform a lot.

So do not expect him to be honest in their words.

[coupable]

CZ  is a businessman and is looking for profits for his platform. He is not interested in decentralization, but rather in profits.
Thus, his views will change according to the trends that bring him those profits.

• If supporting Ukraine means more money for them, they will, and it has happened recently
• If they find that they may benefit from sanctions on Russia, they will support it.

So do not expect him to be honest in their words.

It's not a matter of honesty. CZ will folow the wave if a lawsweet filled by SEC or any other legislative entity. But for now, he can say whatever.
From another side, it won't be in its own profit to ban users according to their nationalities , knowing that Russian users have a considerable activity in all exchanges and not only binance in particular.

[Darker45]

Lest it be misconstrued, CZ's reason why they don't impose a blanket ban on Russian users is not these:

• Crypto plays a very minor role in Russian finances
• Implementing a ban won't change anything
• Crypto doesn't have anything to do with the invasion
• Russians are innocent and shouldn't suffer because of Putin's madness
• Crypto is not a good alternative to escape sanctions
• Crypto is easy to track and, therefore, not good for money laundering

CZ makes it appear as if their decision not to ban Russians in Binance is because of their commitment to fairness, freedom, or crypto. No, it isn't.

The truth of the matter is that CZ is not imposing a blanket ban on Russians because there's no legal order to do so. Such sanction is not in place right now. Should there be one, however, or "if governments introduce new sanctions that include off-boarding users then we will apply those aggressively as well."^[1]

Be warned!

[1] https://www.binance.com/en/blog/leadership/ukraine-russia-sanctions-and-crypto-421499824684903532

[Taskford]

He knows everything on that area as he can check the number of users in certain particular country and its good decision to remain neutral because if you cannot harm them with the action you do then for sure it will all back fire to you on what you did to them and its good that CZ will not impose this sanction to there citizens because this could ruin his business in long run if government will also do their action towards Binance. Crypto should remain nuetral on this discussion it needs more adoption so engaging on this kind of activity will just delay things or will result to banning.

[tabas]

CZ makes it appear as if their decision not to ban Russians in Binance is because of their commitment to fairness, freedom, or crypto. No, it isn't.

The truth of the matter is that CZ is not imposing a blanket ban on Russians because there's no legal order to do so. Such sanction is not in place right now. Should there be one, however, or "if governments introduce new sanctions that include off-boarding users then we will apply those aggressively as well."^[1]

Be warned!

Good take, I honestly thought that he's giving the benefit for Russia because he has decided not to ban users there. But with all of those analysis and facts that I've read, there's really no need for him in doing so. Thus, there's also the right information about him being half Chinese and China is an ally to Russia.

[AmoreJaz]

CZ makes it appear as if their decision not to ban Russians in Binance is because of their commitment to fairness, freedom, or crypto. No, it isn't.

The truth of the matter is that CZ is not imposing a blanket ban on Russians because there's no legal order to do so. Such sanction is not in place right now. Should there be one, however, or "if governments introduce new sanctions that include off-boarding users then we will apply those aggressively as well."^[1]

Be warned!

Good take, I honestly thought that he's giving the benefit for Russia because he has decided not to ban users there. But with all of those analysis and facts that I've read, there's really no need for him in doing so. Thus, there's also the right information about him being half Chinese and China is an ally to Russia.

though we don't know the absolute truth about his decision. but most of these Russians are against with Putin. and if the crypto exchange will turn down these regular Russian users, then, how can they cope up with the impending crisis in their country? they are also humans who want to survive after this war. and one option to store their assets right now is via crypto.
but it is true, there is no legal sanction towards these crypto exchanges regarding acceptance of Russian clients, so why would binance or other exchanges block these russian users?

[sheenshane]

All was I see here is pure business, of course, CZ is a businessman that might have an effect on the exchange if they will impose a ban on the Russian's accounts.  There's another reason on other hand, remember that CZ has come from Jiangsu, China the place where he is born.  China and Russia have a good relationship and maybe that was a possible reason.

What possible reason it is, at least it showing support to innocent people and they have the right to have their fund.  Like Coinbase do the same with Binance and I think Brian Armstrong isn't Chinese but still, he has a concern for the innocent users from Russia and they're in the right decision, exchanges should be on a neutral decision which is CZ also care on Ukrainian victims.

[Taskford]

CZ makes it appear as if their decision not to ban Russians in Binance is because of their commitment to fairness, freedom, or crypto. No, it isn't.

The truth of the matter is that CZ is not imposing a blanket ban on Russians because there's no legal order to do so. Such sanction is not in place right now. Should there be one, however, or "if governments introduce new sanctions that include off-boarding users then we will apply those aggressively as well."^[1]

Be warned!

Good take, I honestly thought that he's giving the benefit for Russia because he has decided not to ban users there. But with all of those analysis and facts that I've read, there's really no need for him in doing so. Thus, there's also the right information about him being half Chinese and China is an ally to Russia.

though we don't know the absolute truth about his decision. but most of these Russians are against with Putin. and if the crypto exchange will turn down these regular Russian users, then, how can they cope up with the impending crisis in their country? they are also humans who want to survive after this war. and one option to store their assets right now is via crypto.
but it is true, there is no legal sanction towards these crypto exchanges regarding acceptance of Russian clients, so why would binance or other exchanges block these russian users?

Putin is just worried about future war that might happen against western countries that's why he really put a hard action towards the decision of Ukraine to join NATO. Putin doesn't want to see Ukraine will be the entry point of western country if there's a war will happen.

For having this implementation I guess it will not help nore can hardly bother the government but instead it will just add the fire that might back fire to them so cz is doing good for his decision and its best not to lock the accounts of Russian citizens because its so unfair to them.

[tabas]

CZ makes it appear as if their decision not to ban Russians in Binance is because of their commitment to fairness, freedom, or crypto. No, it isn't.

The truth of the matter is that CZ is not imposing a blanket ban on Russians because there's no legal order to do so. Such sanction is not in place right now. Should there be one, however, or "if governments introduce new sanctions that include off-boarding users then we will apply those aggressively as well."^[1]

Be warned!

Good take, I honestly thought that he's giving the benefit for Russia because he has decided not to ban users there. But with all of those analysis and facts that I've read, there's really no need for him in doing so. Thus, there's also the right information about him being half Chinese and China is an ally to Russia.

though we don't know the absolute truth about his decision. but most of these Russians are against with Putin. and if the crypto exchange will turn down these regular Russian users, then, how can they cope up with the impending crisis in their country? they are also humans who want to survive after this war. and one option to store their assets right now is via crypto.
but it is true, there is no legal sanction towards these crypto exchanges regarding acceptance of Russian clients, so why would binance or other exchanges block these russian users?

There's no need to know the absolute truth with his decision. Everyone sees it as a fair decision and as someone who's a market leader, many would sympathize and likes the decision he has given. But as someone who's curious about each detail that has been visible, you get the idea and believe what you want to believe. He has already given favor not just with Ukrainians but also the Russians, that's already enough to think that he's neutral although if you try to comprehend and connect all the details that has been said, there's really a content that you can build.

[Darker45]

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There's no need to know the absolute truth with his decision. Everyone sees it as a fair decision and as someone who's a market leader, many would sympathize and likes the decision he has given. But as someone who's curious about each detail that has been visible, you get the idea and believe what you want to believe. He has already given favor not just with Ukrainians but also the Russians, that's already enough to think that he's neutral although if you try to comprehend and connect all the details that has been said, there's really a content that you can build.

How can CZ be neutral when he is imposing sanctions to individual Russians? He is not in any way neutral. A neutral company would be in the middle and wouldn't take orders from whichever side. CZ, on the other hand, is blocking individual Russian accounts in favor of western sanctions. Just because he stopped short from blocking all Russian users doesn't mean he is neutral. He simply doesn't want to lose revenue from the Russians, or lose license from his western bosses.

[tabas]

How can CZ be neutral when he is imposing sanctions to individual Russians? He is not in any way neutral. A neutral company would be in the middle and wouldn't take orders from whichever side. CZ, on the other hand, is blocking individual Russian accounts in favor of western sanctions. Just because he stopped short from blocking all Russian users doesn't mean he is neutral. He simply doesn't want to lose revenue from the Russians, or lose license from his western bosses.

He didn't imposed any sanction, although there's really some sense to think about what he's doing and his company is the one to benefit from that decision of not-banning Russian users. It's making it look like that he's helping them and at the same time, he's really not losing revenue from that region.

[Darker45]

How can CZ be neutral when he is imposing sanctions to individual Russians? He is not in any way neutral. A neutral company would be in the middle and wouldn't take orders from whichever side. CZ, on the other hand, is blocking individual Russian accounts in favor of western sanctions. Just because he stopped short from blocking all Russian users doesn't mean he is neutral. He simply doesn't want to lose revenue from the Russians, or lose license from his western bosses.

He didn't imposed any sanction...

Have you been reading your news lately? I don't know if the news I've been reading are all fake news but it seems they're not. It's all over the media.

From CNBC: "Binance said Monday it will block the accounts of Russian individuals who have been sanctioned..."

From Business Insider: "Binance is blocking access to Russian account holders targeted by international sanctions..."

From Reuters: "Crypto exchange Binance blocks Russian users targeted by sanctions"

Also, CZ has been saying that it is unethical to block all Russian users because they don't necessarily support the invasion. I agree. But those Russian individuals who are sanctioned, do they all support the invasion?

[bittraffic]

What would the world be if no one stands up for decentralization despite having a centralized business?

It defeats the purpose of cryptocurrency when companies are dictated by governments of what thier business should do when they are not involved in the conflict between Ukraine and Russia. Definitely a good point for CZ and I don't see why banning should also be done on Russian sports athletes.