Traders from Iran were banned from Binance’s exchange in November 2018.
The company has been utilizing Reuters WorldCheck for KYC verification since 2018.
According to a report, Binance, the world’s biggest cryptocurrency exchange, continues to service Iranian clients despite a corporate ban and economic sanctions.
Binance has added Iran to its list of countries it will not do business with, although local dealers have apparently continued to do so, according to Reuters.
There is a possibility that the transaction has circumvented American restrictions that were imposed in 2018. As Binance has already said, it ceased servicing Iranian customers in November of that year.
Bypassed Sanctions Using Alternative Ways
They were still using their Binance accounts until September 2021, when new anti-money laundering (AML) legislation came into force. According to the official document, more than a dozen persons claimed to be active traders on the Binance platform.
There are concerns that Iranians may have circumvented U.S. economic sanctions on their country by using the currency exchange. Sanctions against American corporations from doing business in Iran do not apply to Binance because of its Cayman Islands headquarters.
Traders from Iran were banned from Binance’s exchange in November 2018 when the Trump government disregarded the conditions of the previous administration’s nuclear accord and reinstituted sanctions. For some time, users from Iran could open Binance accounts with only an email address and trade on the platform, despite the exchange’s explicit restriction, according to reports.
According to the Reuters article, VPNs may be used to disguise users’ IP addresses, which might betray their location to Binance. According to a tweet in response to the news from the CEO and founder of Binance, CZ, the company has been utilizing Reuters WorldCheck for KYC verification since 2018. The CEO retweeted the company’s commitment to AML requirements a few days later.