The BingX crypto exchange is allowing sanctioned Iranian users to evade restrictions.
At the open marketplace, an Iranian edition of their site is freely shown, and representatives have communicated in Persian within the exchange’s authorized Telegram forum.
Based on one interpretation, the Bing X platform welcomes Iranian users and allows for authentication using a national identification card.
The platform additionally offers Iranian rial to Tether (USDT) conversions through its system, but such transactions are forbidden under the jurisdiction of the United States Treasury Department’s Office of Foreign Assets Control (OFAC).
Since 1979, Iran has faced numerous sanctions imposed by both the United States and the United Nations. The primary reasons given for these sanctions are Iran’s alleged infringement of international law in various ways. Some of these alleged violations include taking possession of assets belonging to American businesses, financing terrorism, and enriching uranium with the intent of producing nuclear weapons. However, Iran strongly refutes these allegations.
Centralized cryptocurrency exchanges are typically prohibited for Iranian citizens due to sanctions, resulting in the risk of being excluded from U.S. and international markets should they engage in transactions with Iranian residents.
Based on OFAC’s regulations, Foreign Financial Institutions (FFIs) could face consequences such as “sanctions on correspondent and payable-through accounts, along with freezing of assets,” if they unwittingly participate in Iranian rial transactions that are known to them.
It seems that on the BingX platform, the Iranian rial, which is subject to OFAC sanctions, can be exchanged directly for other cryptocurrencies.
According to data from CoinMarketCap, daily trading volume on BingX exceeds $974 million, placing it among the twenty largest crypto exchanges globally.
According to its own website, this exchange is legally registered as a financial services provider in the Republic of Lithuania, allowing it to conduct business within the European Union. Additionally, it holds a license for digital currency exchange activities in Australia, and carries out operations from Singapore.
In simple terms, financial institutions in Australia and Lithuania, just like those around the world, are required to adhere to the U.S. sanctions against organizations in countries such as Iran, as well as any restrictions imposed by their own governments or the European Union.
Although it has specified certain conditions, the platform openly invites users from Iran to engage with it on their social media platforms and website prior to November 2021, when it was called Bingbon.
Founded by Josh Lu in 2018, BingX has over 10 million users reportedly serving them. The founder’s nationality is not disclosed publicly at present.
A BingX representative has mentioned that Iran is among the countries with service restrictions. Yet, it’s essential to note that this isn’t a complete ban on offering services. Furthermore, BingX promotes its Iranian rial services and enables users to buy and sell Tether using Rials on their platform.
BingX isn’t the sole cryptocurrency exchange with a licensed status who has reportedly found ways to bypass restrictions on transactions involving users from Iran.
In July 2022, a news report from Reuters revealed that Binance, the biggest cryptocurrency exchange globally, was providing services to Iranian residents. However, Binance disputed this allegation, explaining that they rigorously follow sanction regulations.
In November 2023, the exchange reached a $4.5 billion settlement with the U.S. Justice Department and the U.S. Treasury. They admitted that they hadn’t properly implemented anti-money laundering measures. Their ex-CEO, Changpeng Zhao, confessed to violating the Bank Secrecy Act as well.
In May 2023, Poloniex crypto exchange agreed to pay a $7.6 million fine to the Office of Foreign Assets Control (OFAC) due to not screening users from Crimea, Cuba, Iran, Sudan, and Syria, who had registered before the exchange introduced Know Your Customer procedures.
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2024-04-12 23:06