Binance CEO: Crypto anonymity is a myth

Binance CEO Changpeng Zhao (CZ) has said that it is a common misunderstanding about cryptocurrencies that they are “anonymous”.

He went on to explain that this alleged anonymity was actually a myth and that most people who wished to conceal illegal gains were not actually using crypto to do so.

In a recent interview with CNN, he said crypto is too traceable. He said crypto transactions were easy to link to individuals even after years of an account staying dormant.

As regulation mounts, the chances of anyone using crypto to avoid financial sanctions – as is the feared case with Russia – significantly diminishes.

CZ spoke about sanctions in the context of the Russo-Ukrainian war which has led to the displacement of millions. He said that his company stood against war and crime, and dictatorship, but it didn’t stand against the people.

He elaborated that both Russians and Ukrainians were suffering because of the Kremlin regime and added that Binance was one of the first companies to pledge $10m to assist refugees.

CZ categorically dismissed suggestions that Binance may be facilitating Russian oligarchs in escaping sanctions and reiterated his view of mainstream finance serving a much more convenient and familiar way of concealing funds.

He gave an example with Bitfinex, which was hacked back in 2016 and lost billions worth of crypto.

However, the instant they got caught, CZ noted they were brought to justice. With this in mind, the executive is confident that financial sanctions may not be avoided nor transactions obfuscated simply because everything lives on the public ledger.

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Updated: 04/07/2022 — 12:00