Binance Served Crypto Traders in Iran Despite US Sanctions

 Experts affirmed that Iranian trading on the exchange could draw interest from US regulators. (Reuters)
Experts affirmed that Iranian trading on the exchange could draw interest from US regulators. (Reuters)
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Binance Served Crypto Traders in Iran Despite US Sanctions

 Experts affirmed that Iranian trading on the exchange could draw interest from US regulators. (Reuters)
Experts affirmed that Iranian trading on the exchange could draw interest from US regulators. (Reuters)

The world's largest crypto exchange, Binance, continued to process trades by clients in Iran despite US sanctions and a company ban on doing business there, a Reuters investigation has found.

In 2018, the United States reimposed sanctions that had been suspended three years earlier as part of Iran’s nuclear deal with major world powers.

That November, Binance informed traders in Iran it would no longer serve them, telling them to liquidate their accounts.

But in interviews with Reuters, seven traders said they skirted the ban.

The traders said they continued to use their Binance accounts until as recently as September last year, only losing access after the exchange tightened its anti-money laundering checks a month earlier.

Until that point, customers could trade by registering with just an email address.

“There were some alternatives, but none of them were as good as Binance,” said Asal Alizade, a trader in Tehran who said she used the exchange for two years until September 2021. “It didn’t need identity verification, so we all used it.”

Eleven other people in Iran beyond those interviewed by Reuters said on their LinkedIn profiles that they too traded crypto at Binance after the 2018 ban. None of them responded to questions.

The exchange’s popularity in Iran was known inside the company. Senior employees knew of, and joked about, the exchange’s growing ranks of Iranian users, according to 10 messages they sent to one another in 2019 and 2020 that are reported for the first time.

Binance did not respond to Reuters' questions about Iran.

In a March blog post, published in response to Western sanctions on Russia, Binance said it “follows international sanction rules strictly” and had assembled a “global compliance task force, including world-renowned sanctions and law enforcement experts.”

Binance said it used “banking grade tools” to prevent sanctioned people or entities from using its platform.

The Iranian trading on the exchange could draw interest from US regulators, seven lawyers and sanctions experts told Reuters.

Binance, whose holding company is based in the Cayman Islands, says it does not have a single headquarters.

It does not give details about the entity behind its main Binance.com exchange which does not accept customers in the United States.

Instead, US clients are directed to a separate exchange called Binance.US, which - according to a 2020 regulatory filing - is ultimately controlled by Binance founder and CEO Changpeng Zhao.

Lawyers say this structure means Binance is protected from direct US sanctions that ban US firms from doing business in Iran. This is because the traders in Iran used Binance’s main exchange, which is not a US company.

But Binance does run a risk of so-called secondary sanctions, which aim to prevent foreign firms from doing business with sanctioned entities or helping Iranians evade the US trade embargo.

As well as causing reputational damage, secondary sanctions can also choke off a company’s access to the US financial system.

Binance’s exposure would depend on whether sanctioned parties traded on the platform and whether Iranian clients dodged the US trade embargo as a result of their transactions, four lawyers said.

Aske about traders in Iran using Binance, a spokesperson for the US Treasury declined to comment.

Cryptocurrencies grew attractive in Iran as sanctions took a heavy toll on the economy.

Since the birth of bitcoin in 2008, users have been drawn to crypto’s promise of economic freedom beyond the reach of governments.

Cut off from global financial services, many Iranians relied on bitcoin to do business on the internet, users said.



French MP: We Look Forward to Sustainable Cooperation with Saudi Arabia under Vision 2030

French MP Amélia Lakrafi. (Asharq Al-Awsat)
French MP Amélia Lakrafi. (Asharq Al-Awsat)
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French MP: We Look Forward to Sustainable Cooperation with Saudi Arabia under Vision 2030

French MP Amélia Lakrafi. (Asharq Al-Awsat)
French MP Amélia Lakrafi. (Asharq Al-Awsat)

As Saudi Arabia undergoes economic and social changes under its Vision 2030, attention is turning to strengthening strategic partnerships with France in areas such as innovation, technology and cybersecurity.

Amélia Lakrafi, a French member of parliament and representative for French nationals abroad, stressed the importance of Vision 2030 as a platform for long-term cooperation between the two nations.

Vision 2030 presents unique opportunities to boost economic ties between France and Saudi Arabia, she stressed.

She emphasized the need to support innovation and technology as key areas of collaboration.

To advance this partnership, she suggested empowering French-Saudi business councils and holding regular meetings for companies and experts to discuss legal and tax issues, such as setting up companies without a local partner.

She also proposed creating a unified platform to streamline information access for businesses and coordinate with entities like embassies and the “Business France” agency.

France should highlight the investment opportunities it offers to Saudi investors, ensuring quick and clear solutions to legal and procedural challenges, Lakrafi went on to say.

Innovation and AI

Innovation and technology are vital for future cooperation. Lakrafi noted that artificial intelligence (AI) and renewable energy are key areas for collaboration.

She explained that AI is a strategic priority for both France and Saudi Arabia, and French President Emmanuel Macron’s recent visit to Riyadh highlighted its potential.

Paris will host a global AI event in February, with Saudi Arabia as a partner guest, said the MP.

The event will help strengthen partnerships between institutions and businesses from both countries. She proposed creating competitive hubs in Saudi Arabia, similar to those in France, to bring together large companies, startups and researchers.

Boosting capital

Lakrafi stressed the importance of intangible capital, which includes branding, reputation and internal processes, for improving competitiveness.

“Intangible capital represents about 60% of a company's value,” she said. “Companies should invest in securing these assets, through trademark registration, enhanced cybersecurity, or better internal management.”

She called for the development of tools to measure intangible capital, which could help businesses build trust and attract investors and customers.

Cybersecurity

Given the rise in global cyber threats, Lakrafi called for stronger cooperation between France and Saudi Arabia in cybersecurity.

She underscored France’s expertise through institutions like the National Agency for the Security of Information Systems.

This collaboration could help Saudi Arabia develop shared cybersecurity standards, including rules to secure companies receiving government funding. She also warned that 80% of companies hit by major cyberattacks close within three years.

Lakrafi concluded by stressing that the cooperation between France and Saudi Arabia extends beyond economic ties, focusing on building cultural and social connections that support shared goals.

“Our relationship with Saudi Arabia goes beyond economics. We are building new links every day, whether between leaders, lawmakers, or citizens. I see a bright future for this partnership that will strengthen both countries’ global standing,” she remarked.