A new channel for sanctions evasion uncovered?
According to information obtained by the Wall Street Journal from informed sources, the U.S. Department of Justice is investigating the possible use of the popular cryptocurrency exchange Binance by Iran to evade international economic sanctions.
Iran is under tough economic restrictions from the U.S. and a number of other countries due to its nuclear program and support for terrorism. Cryptocurrency transactions are often used to circumvent such sanctions, as they allow cross-border transfers without the involvement of the traditional banking system.
Binance is the world's largest cryptocurrency exchange by trading volume. It does not have an official legal entity and headquarters, making it difficult to regulate its activities. Binance has previously been the subject of investigations by various regulators, including the U.S. Department of Justice and the Office of Foreign Assets Control (OFAC).
Binance representatives have not yet commented on the information about the new investigation. The exchange has repeatedly stated that it complies with all applicable laws and cooperates with regulators.