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Binance It is one of the largest platforms in the world for cryptocurrency trading, and changes what they need to change to make it work in the countries that host them. In Iran, there are many international sanctions that must be met to work. As such, Binance has issued a council for users in the area: withdraw their assets.
Iranian users were given an e-mail, saying "If you have an account with Binance and fall into that [sanctions] category, please withdraw your assets from Binance as soon as possible. "Apparently, e-mails like these have been occurring for months, but have only increased in frequency following the entry into force of new US sanctions, according to Sepehr Mohamadi, Mohamadi is the chairman of the board of the Blockchain Association of Iran.
At the beginning of the e-mails, the platform mainly dealt with the silencing of accounts for users who had included their Iranian passports as part of the Know-Your-Customer (KYC) protocols. However, in the e-mails this week, they also asked to withdraw the accounts linked to the Iranian IP addresses. An Areatak researcher, Nima Dehqan, commented: "The Iranians are not really able to trust the cryptocurrant trade, it's really not something new."
Iranian users have struggled during the last year to participate in the cryptocurrency. Also BitMex and Bittrex are some of the users who have forbidden these users to use their services. The even greater struggle with the current bans is that there are presumably some platforms that are not even repaying the cryptocurrency that users have entrusted to them.
John Collins, a member of FS Vector in Washington D.C. and the former head of the Coinbase policy, said: "It would be difficult [for the exchanges] serve users in these jurisdictions if they want to serve American citizens. It is logical to say that many companies are looking into states at this time and are adjusting to US regulation. "
Because of these changes, the Iranian bitcoin community had no choice but to work together to create local businesses and to support networks, according to Dehqan. He went on to say, "We actually have cryptocurrency groups in Telegram or WhatsApp for people who want to change their cryptocurrencies in person, people have to trust each other, it's a much more united community in Iran. "To create these opportunities, there are also some configurations of physical stores, according to traditional KYC regulations.
The actions that US regulations have adopted against some trading platforms (such as EtherDelta) have encouraged some Americans to be more cautious about the KYC process. This could alter the functions of Binance, considering that about 13% of their business comes from the United States.
The lawyer Nelson Rosario, who works specifically with legal issues in cryptocurrency in Chicago, said: "Regulators are starting to focus more on trade". Referring to Binance's recent decisions, he continued: "This is an example of how managing a business that deals with people around the world can be extremely complex and it is almost impossible to identify all potential early pitfalls. "However, Rosario has commented that Binance does not actually have operations in the United States, and the regulators' attention has been on local companies.
Right now, the separation from Iranian users is coming at the same time as the Iranian authorities are working on a national cryptocurrency, very similar to what Venezuela has done with Petro. In a statement to CoinDesk, Mahmoud Eskandari, one of Binance's users and blockchain developer in Tehran, expressed his concerns about the fact that the Iranian government is trying to "completely dominate the economic crisis" by taking over the encrypted market.
Due to a shared concern with most Iranian users, small mining operations are being created recently, which decide to leave external platforms behind. However, the few options have not dampened the enthusiasm that the locals have for the cryptocurrency market. Moreover, Dehqan commented that the opinion of Binance did not have much influence on the crypto community. Traders and investors in the area first extract their crypto or hodl assets, protecting themselves from inflation and avoiding speculative trade. Dehqan went on to say, "The sanctions do not have much effect on bitcoin mining, but it is actually profitable in Iran compared to other countries."
This year, Areatak has received over 1,000 colocation mining contracts, taking advantage of low-cost electricity with a new infrastructure and reloading miners for their revenues. At this time, Dehqan believes that cryptocurrency represents only 25% of the typical cost of electricity, adding up to less than one cent per kilowatt hour.
Eskandari, who extracts both Bitcoin and Ethereum, said: "Many people from other cities come to Tehran to buy mining devices, my friend sells Antminers and mining devices in Tehran, and he sold about 100 devices last month."
Based on the latest news in Iran, regulators are trying to create a legal system that can keep track of this growing mining industry. Dehqan noted: "We have a lot of investors who have visited Iran from the World Mining Summit, all in all, you can actually access the cryptocurrency purchase in Iran and that's the only thing that matters . "
So far, Binance has not released any further statements regarding their advice to customers or current circumstances.
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