Binance doesn’t seem to walk away from this image of being willing to do anything and everything to maintain its lead in the cryptocurrency exchange game, even if it means allowing trading from users in sanctioned countries.
Reuters On Monday, based on several interviews with traders, it was reported that Iranians continued to operate on the Binance exchange despite the 2018 US sanctions against their home country. It appears that these deals were ongoing until September 2021. One of the traders from Iran, a business development worker named Mehdi Qadri, used a VPN to trade around $4,000 on Binance, saying that “all Iranians were using [Binance]. “
Reuters also reported that it found 11 people in Iran other than those interviewed who declared in their LinkedIn profiles that they traded cryptocurrency on Binance.
Reuters found no evidence of anything specific individuals Those sanctioned in Iran using Binance. However, Iranian cryptocurrency traders, citing Reuters, said that while there were other alternatives, “none of them were as good as Binance.”
Not only did the company allow those deals, they knew about and even mocked them, according to internal communications detailed in a Reuters report. Senior employees have reportedly sent messages to each other Over the course of 2019 and 2020, one of them glorifies the growing number of Iranian users, calling them “Iranian boys”.
Binance is easily the largest crypto exchange by trading volume, according to CoinMarketCap and It’s not even close. The company advertises that it operates 1,681 markets, with FTX, the next largest, occupying 419 markets.
But there is still a lingering question about which country regulations Binance must adhere to. Binance Holdings is based in the Cayman Islands, and the main exchange Binance.com is not available in the US. Instead, US clients use Binance.us, a separate company still controlled by CEO Changpeng Zhao. Lawyers who spoke to Reuters said the company may be protected from major US sanctions, but it could be hit with the hammer of court orders trying to prevent foreign companies from doing business with countries like Iran.
Iranian users were reportedly allowed to exist on the platform – where they only requested an email address to register – until September 2021 when the company doubled down on anti-money laundering vetting procedures, according to the report.
In an email statement to Gizmodo, a Binance spokesperson said:
“We have assembled a globally recognized compliance and regulatory program that has been our primary objective over the past 18 months… our industry-leading sanctions program is fully compliant with all international financial sanctions, including blocking users’ access to the platform in Iran and North Korea, among others Several others. We have also implemented advanced detection tools that have allowed us to further crack down on users in sanctioned areas who have access to advanced anonymization tools including VPNs.”
The spokesman added that they obtained the registration and approvals to work in the G7 countries, France and Italy.
Zhao took to Twitter on Monday morning to effectively direct the allegations, saying: “Binance is using Reuters WorldCheck As one of the KYC verification tools since 2018… It’s the gold standard used by all banks. But when we use it, they still write FUD about us.”
For those who don’t conform to the acronym soup, KYC stands for Know Your Customer Verification, which is used to identify and verify customers, which may include checking if they are located in sanctioned countries. FUD, in the context of crypto, means “fear, uncertainty, and doubt,” a phrase often used to dismiss any negative news in practically any conversation about the honest efficacy of crypto-related businesses.
This isn’t the first time the company has been cited in reports to facilitate users from – and even from the governments of – sanctioned countries. Back in April, Reuters reported based on leaked internal messages and anonymous interviews of a cryptocurrency trader agreed to deliver Names of people who donated to political opponents of President VladiMir Putin to the Russian authorities.
So there is definitely a heap of fear of regulators entering the crypto exchange, evidenced by the number of public posts Binance has posted regarding its KYC policies and its attempts to comply with the sanctions. In a blog post on Monday, Binance Global Head of Sanctions Chagri Poyraz wrote, “We do not allow access from countries like North Korea, Syria, Cuba, and Iran, to name a few, precisely because we believe in following international sanctions laws.”
“Very few people understand the technology, let alone global penal laws,” Poyraz also said. He wrote that they were hiring “the most sophisticated Know your customer and monitor transactions technology.” However, he added, “we simply cannot move to a well-established sanctions program from the banking industry.”
And it’s not just the wrath of US regulators that Binance should be concerned about. Bloomberg report Last month Explain in detail how Binance and its founder Zhao promoted TerraUSD, the stablecoin that would Ultimately proves to be incredibly unstablewhich eventually led to the continuation of this encryption winter. The company lost nearly $1.6 billion in that crash, according to Bloomberg. Binance later Pending Raffle For a few hours in June “because the transaction was halted causing backlog”.
Then Binance said they plan on it 2000 job openingsalthough it would be interesting to see where things lead to knowing the number of smaller cryptocurrency exchanges closed to me Explodes.
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