Changpeng Zhao tells whether cryptocurrency exchange will comply with sanctions against Russians

Changpeng Zhao, CEO of cryptocurrency exchange Binance, said that sanctions against Russia over its invasion of Ukraine have created a «difficult situation» for the exchange to work with users of the terrorist state.

«We are against the military dictatorship, but not against the population. However, our company has licenses in many different places, and we have to follow the rules,» Zhao said.

When asked whether Binance will block users from the occupying country, as many other cryptocurrency platforms have already done, the head of Binance said that he did not have a final decision yet. He noted that Binance’s licensed companies in Europe will definitely not be able to serve Russian citizens, but nothing is known about other jurisdictions. It seems that the largest cryptocurrency exchange wants to please the European community and not lose Russian customers, who mostly keep their crypto funds with Binance.

In early October, the EU approved another package of sanctions, which included a ban on servicing cryptocurrency accounts of citizens and residents of the Russian Federation, regardless of the amount of the deposit. Blockchain.com, LocalBitcoins, Dapper Labs, and Kraken have already announced restrictions for the occupiers. Coinbase, Crypto.com, and BitMEX have also announced their readiness to support the sanctions.

As a reminder, the authorities in Singapore also called on cryptocurrency exchanges to block Russian accounts because of their military aggression against Ukraine. In addition, exchanges should monitor potential attempts to circumvent sanctions, in particular through the use of cryptocurrency mixers. Under the current legislation, a financial company found guilty of violating regulatory rules may be fined up to S$ 1 million (over $ 709,000).