Updated on:12/01/2025 05:07 PM 
Binance CEO Changpeng Zhao, widely known as CZ, has publicly stated that nations cannot effectively use cryptocurrencies to bypass Western-imposed sanctions. He made these remarks during a recent interview with Richard Quest, the host of CNN's Quest Express. According to Zhao, the inherent traceability of digital assets makes them an inappropriate method for circumventing international financial penalties.
Zhao pointed out that governments across the globe are becoming significantly more proficient at monitoring and tracing blockchain transactions. To this end, he believes a sophisticated state actor would not seriously attempt to leverage crypto for such purposes due to the high risk of detection.
Nevertheless, he affirmed that Binance strictly adheres to sanctions compliance and will block any individuals or entities found on international sanction lists. CZ added that the exchange would also freeze accounts belonging to anyone even remotely connected to those sanctioned parties.
However, he asserted that Binance considers it wrong to freeze the assets of ordinary Russian citizens who are not on sanction lists. As such, the exchange will maintain its decision not to impose a blanket ban on all Russian users. To demonstrate the organization's commitment to regulatory compliance, CZ stated that it is ultimately up to governments to instruct Binance on whose assets should be withheld or released.
Unlike some organizations hesitant to take a definitive position on the conflict, CZ stated that Binance is unequivocally against the war in Ukraine and the politicians who initiated it.
He reiterated that the exchange's opposition is directed at the aggression, not the people, acknowledging that the war has harmed both Ukrainians and Russians. According to him, Binance aims to support these individuals in overcoming the hardships they face.
Highlighting the company's humanitarian efforts, he pointed out that Binance was among the first organizations to pledge $10 million to aid Ukrainian refugees. CZ added that the majority of these funds have already been distributed.
This development follows a statement from Coinbase CEO Brian Armstrong, who said the exchange would not proactively ban all Russian users. In a March 4 series of tweets, Armstrong affirmed that Coinbase believes everyone deserves access to financial services unless legally specified otherwise.
He added that,
Some ordinary Russians are using crypto as a lifeline now that their currency has collapsed. Some of them likely oppose what their country is doing, and a ban would hurt them, too. That said, if the US government decides to impose a ban, we will of course comply with those laws.
