Cryptocurrency trading giant Binance cancels Syrian accounts.. What are the reasons

 

Syrians circulated on social networking sites news that the “Binance” platform for cryptocurrencies announced the closure of the accounts of Syrian traders, Thursday, April 28.

Enab Baladi contacted the platform’s support and assistance department and got details confirming the news.

The official in the support department of “Binance” said that the platform has established strict laws to close the accounts of all holders of Syrian citizenship in various countries of the world.

The decision is based on recommendations received from many parties, most notably the United Nations Security Council and the US Treasury’s Office of Foreign Assets Control, according to the official.

The official in the support department explained that the platform is keen to reach the largest number of users, but its adherence to the recommendations is necessary to ensure that its services are not restricted in many countries, noting that violating the recommendations contained on Syrian accounts could restrict access to the platform.

The platform allowed Syrian traders to withdraw their money or transfer it to other platforms within a maximum period of seven days, starting from the 28th of April.

During the past months, fears emerged that Russia would use digital currencies to bypass the sanctions imposed on it after the European Union, the United States, the United Kingdom and Canada, on February 26, targeted Russia’s foreign exchange reserves amounting to 640 billion dollars (a financial reserve to deal with emergencies). and financial stability), by agreeing to prevent the Russian Central Bank from deploying its international reserves in ways that undermine the impact of sanctions imposed by them.

Iran is also actively selling its energy reserves in global markets, using Bitcoin to bypass the trade embargo.

The Iranian government can make about $1 billion annually from bitcoin mining, according to Blockchain Elliptic, a consulting analysis firm that helps clients fight crypto-related crime.

On the other hand, there is no confirmed information about the Syrian regime and its officials’ use of the cryptocurrency market to escape the sanctions imposed on it.

Cryptocurrencies can bypass the international banking system that is key to sanctions as a listening platform for financial transactions around the world (a feature of cryptocurrencies that regulators and central banks don’t like), by offering an alternative way to conduct cross-border transactions.

Digital currencies have attracted the attention of a large segment of Syrians, as Syria ranked tenth in the world in online searches for “Bitcoin” and other types of digital currencies, according to an analysis of data of 27 million searches from 100 million users of the site, between November 2020 and January 2021. .

And the British newspaper, “The Guardian,” published the result of this data analysis, on February 9, 2021, noting that countries with high levels of instability are relatively more interested in digital assets than developed countries, and that the countries that rank last in the “Human Freedom Index,” Or politically troubled ones for other reasons, appearing in the top ten countries to search for cryptocurrency online.

What is “Binance”?

It is one of the leading platforms in the cryptocurrency market.

Users of the platform can purchase cryptocurrencies using a wide range of payment options, including bank transfers, credit and debit cards, as well as cash.

The platform accepts a range of currencies to buy digital currencies, most notably: the US dollar (USD), the euro (EUR), the Chinese yuan (CNY), the Australian dollar (AUD), the Indian rupee (INR), the Russian ruble (RUB) and other supported local currencies.

What is “Bitcoin”?

A digital currency that is used and distributed electronically, as it is traded and speculated electronically, and is not under the control of a specific institution or person.

The existence of the virtual currency “Bitcoin” dates back to 2009, when it was invented by a person or group of people, who were called by default “Satoshi Nakamoto”.

On December 10, 2017, the virtual currency “Bitcoin” entered the official trading of the exchange, and it is the first digital currency to enter the stock market.

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