Tuesday, September 27, 2022

Binance Reportedly Defies US Sanctions, Offers Products To Iranian Traders

For a while now, top crypto exchange Binance has been having run-ins with regulators around the globe. And now, in a recent discovery, it appears that the world’s largest crypto exchange did not act in line with the dictates of sanctions that the U.S. imposed on Iran.

Binance users evaded sanctions

According to a Reuters report, Binance did not yield to the instructions of the U.S. that asked it to stop offering trading services to Iranians. The traders recall that they still had full trading access on Binance, up until September 2021. And by merely signing up with their email address, they could do virtually anything on the platform. Although, soon after, they lost access as the exchange came up with more stringent anti-money laundering AML policies.

Meanwhile, it is noteworthy that the United States placed another restriction on Iran in 2018. That was three years after suspending the country over a nuclear deal. And in line with the sanction, Binance announced in November that it would cease serving its Iranian users. The exchange also asked them to liquidate their accounts at the time.

Complacency accusations 

On the account of a Tehran-based trader, Binance was so easy to use that it didn’t even need to verify users’ identities. The anonymous trader confirmed that many like him continued trading crypto on the platform long after the 2018 sanction. 

The claims also suggest that Binance was fully aware of the fact that it was popularly used amongst Iranians at the time. A comment by one of the top executives at the firm, regarding the platform’s demand in Iran, at least confirms that.

But, Binance has since denied all of these allegations in a blog post. The exchange claims it continues to work in full compliance with all international sanctions. And in addition, it also claims that it doesn’t encourage money laundering by any means.

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