Binance Helped Iranian Firms Trade $8 Billion Despite Sanctions

According to reports by Reuters cryptocurrency exchange Binance processed transactions of Iranian origin with a value of $8 billion since 2018 despite sanctions imposed by the U.S. that are intended to cut the country off from the global financial system.

Data from U.S. blockchain researcher Chainanalysis revealed that almost all the funds, or at least $7.8 billion, moved between Binance and Iran’s largest crypto exchange, Nobitex. 75% of the funds that moved through Binance were in Tron which gives users an option to hide their identities. Nobitex encourages its clients to use Tron – a mid-tier token – to trade anonymously without “endangering assets due to sanctions.” The findings have been revealed following an investigation by the U.S. Justice Department into possible violations of money-laundering rules by Binance. Chagri Poyraz, head of sanctions at Binance said that “Earlier this week, we discovered that Binance interacted” with “bad actors” using Iranian cryptocurrency exchanges. He added that some of these users “attempted to move crypto through Binance’s exchange,” adding that “As soon as we discovered this, we moved to freeze transfers (and) block accounts.”

It is important to note that no Iranian crypto platforms are currently under sanction, however, U.S.- imposed restrictions prohibit a U.S. entity or U.S. national from selling goods and services to Iranian residents, businesses, or institutions and the ban includes financial services. According to data from Chainanalysis, Binance.US has conducted various transactions with Iranian crypto platforms.

Crypto a Convenient Alternative for Iran

Cryptocurrencies have offered Iran a way to circumvent U.S. sanctions that have left its economy crippled. In August, the Islamic Republic made its first official import order using cryptocurrencies. The order is reported to be worth $10 million and was taken as a first step towards allowing the country to trade via digital assets that bypass the dollar-denominated global financial system and allow it to trade with other countries that are similarly limited by U.S. trade embargoes such as Russia. The Iranian government has also reportedly started issuing licenses to cryptocurrency miners under a new regulatory framework.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.