In an urge to comply with international sanctions, Binance Exchange warns Iranian traders to withdraw their funds from its platform. The headlines come into picture when Iranian traders received an email statement, stating;
“If you have an account with Binance and fall into that [sanctions] category, please withdraw your assets from Binance as soon as possible,”
A local report reveals that the number of emails sent out from the Binance has eventually increased when US Sanctions were renewed on November 05. Accounts that were pointing towards Iranian IP were also advised to get their funds out from the exchange. Reportedly, the KYC process in Binance has also reportedly closed all Iranian users who have submitted their Iranian passport.
A spokesperson belongs to Iranian blockchain project called Areatak, Nima Dehqan said that “That isn’t really something new.”. Viciously, he points that cryptocurrency exchanges are not trusted patform that Iranians can rely. In fact, earlier the other two exchanges, BitMex and Bittrex have also banned Iranian users and failed to refund their holdings yet, he concerned. Eventually, failure of effective services from these platforms urged Iranians to form their own bitcoin community. In her own words;
“We do actually have cryptocurrency groups in Telegram or WhatsApp for people who want to change their cryptocurrencies in person,” adding that. “People have to trust each other. It’s a bit of closer-knit community in Iran.”
As a concern and to stabilize the economic status of Iran, the authorities may soon launch state-backed cryptocurrency. It proposes to completely dominate the economic crises by controlling the crypto market. Nonetheless, this wouldn’t have a dramatic effect on Tehran’s bitcoin mining, however, mining cryptocurrency in Iran is actually much profitable than other countries.
With the confidence that increasing inquiries received by Areatak regarding collocation mining contract, Dehqan said;
“The sanctions don’t have much effect on mining bitcoin. It’s actually profitable in Iran, compared to other countries.”
He also compared crypto mining in Iran with the cost of electricity which in due course comes less than a single cent per kilowatt hour.
As Iran is preparing to launch its own cryptocurrency, Binance seeking Iranians to withdraw their funds may negatively effect. Do you think that Binance’s warning will affect upcoming Iran’s cryptocurrency? Lets discuss.
Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com