BingX crypto exchange has found a way to help Iranian users bypass sanctions by openly catering to them on its platform. The exchange has even created an Iranian version of its website and made statements in Persian on its official Telegram group. According to one of the statements, BingX has no issue with Iranian users and even allows them to authenticate using a national card.
In addition, the exchange enables Iranian users to swap Iranian rial for Tether (USDT) on its interface, a practice prohibited under the United States Treasury Department’s Office of Foreign Assets Control (OFAC) rules.
BingX’s willingness to accommodate Iranian users is evident in its policies. When asked about restrictions for registering from Iran, a BingX representative replied, “It should be fine… Just follow the instructions on your registration.”
Iran has been under various sanctions since 1979, with the US and the United Nations accusing the country of numerous violations of international law. These include seizing property from US companies, funding terrorism, and pursuing nuclear weapons through uranium enrichment. Iran denies these allegations.
The sanctions generally prevent Iranian residents from using centralized cryptocurrency exchanges, and any exchanges that do business with Iranians risk being blocked from US and global markets.
However, BingX appears to allow direct swaps of the OFAC-sanctioned Iranian rial for other cryptocurrencies. This is despite the fact that BingX facilitates over $974 million in trading volume per day, making it one of the top 20 crypto exchanges globally.
BingX is registered as a financial services company in Lithuania and holds a license to operate in the European Union. It is also licensed as a digital currency exchange in Australia and operates from Singapore. Like all global financial institutions, BingX must comply with US OFAC sanctions and any sanctions imposed on Iran by their home countries or the EU.
Despite these obligations, BingX actively seeks out Iran-based users on its social channels and website. The exchange was previously known as Bingbon but rebranded as BingX in November 2021. It was founded by Josh Lu in 2018, although the nationality of the current founder is unknown.
According to a BingX representative, Iran is on the list of countries with restrictions, but this does not equate to a ban on providing services. The exchange also advertises its Iranian rial services, emphasizing that users can buy and sell Tether with rials on BingX.
BingX is not the only licensed cryptocurrency exchange that has been caught circumventing sanctions for Iranian users. Binance, the world’s largest crypto exchange, was accused of serving Iranian citizens in July 2022. Although Binance denied the claim at the time, it later agreed to a $4.5 billion plea deal with the US Justice Department and the Treasury, admitting to failing to maintain an effective policy against money laundering. Binance’s former CEO, Changpeng Zhao, also pleaded guilty to Bank Secrecy Act violations.
In May 2023, crypto exchange Poloniex paid a $7.6 million settlement to the OFAC for failing to screen users from Crimea, Cuba, Iran, Sudan, and Syria retroactively. This failure occurred before the exchange implemented Know Your Customer controls.
It is worth noting that the US Treasury has recently sanctioned crypto mixer Sinbad, alleging ties to North Korea.