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