Cryptocurrency exchange Binance continued to serve customers from Iran, bypassing US sanctions and the ban on doing business in that country. This is evidenced by the results of a Reuters investigation.

In 2018, US authorities reinstated suspended sanctions as part of an agreement with major powers to phase out Iran’s nuclear program. In November of the same year, Binance notified local traders that it would no longer serve them and suggested they liquidate their accounts.

However, at least seven Iranian customers of the exchange continued to use their accounts until September 2021, according to Reuters. They only needed an email address to sign up. They lost access to the platform only after Binance tightened their anti-money laundering controls.

“There were several alternatives, but none as good as Binance. “Authentication was not required, so we all used this exchange,” said Tehran-based trader Asal Alizadeh, who used the platform for two years until September 2021.

In addition to those interviewed by Reuters, eleven others in Iran reported LinkedIn profiles trading cryptocurrencies on Binance since the 2018 ban.

Traders said they were attracted to Binance because of its weak KYC controls, high liquidity and large number of cryptocurrencies. Some easily bypassed restrictions using VPN services.

“Cryptocurrency is a good way to circumvent sanctions and make money,” said trader Ali, who has been using Binance for about a year.

He shared Reuters correspondence with the exchange support service, which announced that his account was closed in 2021 in accordance with “the recommendations of the UN Security Council”.

The company’s senior employees were aware of the increase in the number of Iranian users. The messages they sent to each other in 2019 and 2020 show this, the agency wrote.

Someone wrote “IRAN BOYS” in response to data showing Binance’s popularity on Instagram in Iran.

Another jokingly offered to advertise this fact: “Promote this on Twitter at Binance USA.”

In April 2020, an unnamed senior official stated in a correspondence that Iranian traders use Binance without specifying how he learned about it. A foreign exchange compliance document reviewed by Reuters that same year gave Iran the highest risk rating of any country for illegal financing.

Exchange representatives did not comment on this information.

Lawyers say news about Iran’s Binance trading could draw the attention of US regulators. The comprehensive nature of the exchange does not protect foreign firms from the risk of secondary sanctions that prevent them from doing business with blacklisted entities. This not only damages reputation, but also deprives the company of access to the US financial system.

Reuters found no evidence of sanctioned individuals using Binance.

Recall that in March, in response to Western sanctions against Russia, Binance stated that it “strictly complies with the rules of international sanctions.”

The exchange said it uses “bank-level tools” to prevent sanctioned individuals or entities from using its platform.

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