Binance is blocking certain users (linked to Russian government) (1) How is this possible when crypto is supposed to be decentralized? Can those users not access their wallets bypassing Binance's controls?<p>(1) https://cointelegraph.com/news/binance-blocks-crypto-accounts-of-relatives-tied-to-the-russian-government
Binance is blocking usage of Binance to exchange cryptocurrency for other assets.<p>Note this part: "Binance blocked the account of the Kremlin spokesman’s daughter when she tried to use the exchange"<p>"blocked the account" -- i.e., the <i>Binance</i> account.<p>"use the exchange" -- one would "use an exchange" to convert cryptocurrency to/from fiat or to transfer/receive cryptocurrency held by Binance to/from Binance -- so what they are blocking is using Biance to buy/sell/send/receive cryptocurrency on Binance.<p>But cryptocurrency transfers to another wallet of the same cryptocurrency that happen outside of Binance can't be blocked by Binance.
> Binance is blocking certain users (linked to Russian government) (1) How is this possible when crypto is supposed to be decentralized?<p>The cryptocurrencies <i>may</i> be <i>'decentralized'</i> but the exchanges are not and they can block or deny access to the customer's wallet address (with KYC/AML information) from sending and receiving the funds by disabling the deposit and withdraw functions, since these wallets are sitting on an exchange i.e custodial wallets.<p>They can trace up addresses from a hack, tornado wallet address, funds transferred from one wallet address and linked to a sanctioned address and block associations with that as soon as the money touches their custodial wallets.<p>That is why custodial wallets are always associated with <i>'not your keys not your coins'</i> and why the CEO of another crypto exchange has told their customers to stop using centralized exchanges. [0] Non-custodial wallets are <i>'decentralized'</i>.<p>So, as soon as you asked:<p>> Can those users not access their wallets bypassing Binance's controls?<p>The answer is they cannot access them not bypass it. Hence, <i>'Not your keys not your coins'</i>.<p>[0] <a href="https://cryptobriefing.com/kraken-ceo-warns-users-to-get-your-coins-out-of-centralized-exchanges" rel="nofollow">https://cryptobriefing.com/kraken-ceo-warns-users-to-get-you...</a>
Binance exchange is not decentralized. You can have the most decentralized and libre ledger in the world but once you put your funds onto someone else’s private key they are not in your control anymore.