2023 Fintech and Financing Conference & Expo

Chainanalysis Shows Binance Processed $8 Billion Iranian Transactions Despite Sanctions

Reuters | Angus Berwick and Tom Wilson | Nov 7, 2022

Binance at Risk and Nobitex - Chainanalysis Shows Binance Processed $8 Billion Iranian Transactions Despite Sanctions

Image: Retuers

Crypto giant Binance has processed Iranian transactions with a value of $8 billion since 2018 despite U.S. sanctions intended to cut Iran off from the global financial system, blockchain data show.

  • Almost all the funds, some $7.8 billion, flowed between Binance and Iran's largest crypto exchange, Nobitex, according to a review of data from leading U.S. blockchain researcher Chainalysis.

See:  US Treasury of Foreign Assets Control Sanctions Virtual Currency Mixer (First Time Ever) 

  • In August 2021, Binance announced that customers would no longer be able to open accounts and use its services without identification. But since then, the exchange has processed almost $1.05 billion in trades directly from Nobitex and other Iranian exchanges, according to the Chainalysis data, which runs to November of this year. Since Zhao's tweet in July, Binance has processed around $80 million in Iranian trades.
  • The data reviewed by Reuters show that in total some $2.95 billion in crypto moved directly between Iranian exchanges and Binance since 2018. 
  • A further $5 billion in crypto moved between Iranian exchanges and Binance through layers of intermediaries, the data also reveal.
  • Reuters is making available here the data for direct transactions since August 20, 2021, amounting to around $1 billion.
  • Tron:  Three-quarters of the Iranian funds that passed through Binance were in a relatively low-profile cryptocurrency called Tron that gives users an option to conceal their identities. In a blog post last year, Nobitex encouraged clients to use Tron - a mid-tier token - to trade anonymously without "endangering assets due to sanctions."
  • Investigation:  The new findings come as the U.S. Justice Department is pursuing an investigation into possible violations of money-laundering rules by Binance, which dominates the $1 trillion crypto industry, with over 120 million users.

See:  An Analysis of Bitcoin’s Use in Illicit Finance

  • Sanctions:  Six lawyers and sanctions experts said the Iranian transactions documented by Reuters put Binance at risk of U.S. "secondary" sanctions, designed to prevent non-U.S. firms from doing business with sanctioned entities or helping Iranians evade the American trade embargo. Secondary sanctions can choke off a company's access to the U.S. financial system.
    • Binance could also be exposed to direct "primary" sanctions if the company has what the U.S. Treasury Department calls a "nexus to the United States," the lawyers and experts said. Such links can include any U.S.-incorporated entities, or transactions processed through the U.S. financial system or using the dollar, they said. Treasury didn't respond to a request for comment.

Continue to the full article --> here


NCFA Jan 2018 resize - Chainanalysis Shows Binance Processed $8 Billion Iranian Transactions Despite SanctionsThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - Chainanalysis Shows Binance Processed $8 Billion Iranian Transactions Despite SanctionsFF Logo 400 v3 - Chainanalysis Shows Binance Processed $8 Billion Iranian Transactions Despite Sanctionscommunity social impact - Chainanalysis Shows Binance Processed $8 Billion Iranian Transactions Despite Sanctions

Support NCFA by Following us on Twitter!







NCFA Sign up for our newsletter - Chainanalysis Shows Binance Processed $8 Billion Iranian Transactions Despite Sanctions




 

Leave a Reply

Your email address will not be published. Required fields are marked *

nineteen − 19 =