The BingX cryptocurrency exchange is providing a way for sanctioned Iranian users to bypass restrictions. The exchange openly presents an Iranian version of its website and its officials communicate in Persian within the exchange’s official Telegram group.
According to a translated statement, the BingX exchange has no issue with Iranian users and even allows authentication with a national card. Additionally, the exchange enables Iranian rial to Tether (USDT) swaps on its platform, which is prohibited under the United States Treasury Department’s Office of Foreign Assets Control (OFAC) regulations.
In a post on the official BingX Discord, a user inquired about any restrictions for registration from Iran. A BingX representative responded that it should be fine and advised the user to follow the registration instructions.
Iran has faced numerous sanctions since 1979, with accusations from the U.S. and the United Nations ranging from seizing U.S. company property to funding terrorism and pursuing nuclear weapons through uranium enrichment. Iran denies these claims.
These sanctions generally prohibit Iranian residents from using centralized cryptocurrency exchanges, and exchanges that engage with Iranians risk being blocked from U.S. and global markets.
According to OFAC, Foreign Financial Institutions (FFIs) face correspondent and payable-through account sanctions and blocking sanctions if they knowingly facilitate transactions involving the purchase or sale of Iranian rials. However, it appears that BingX allows direct swapping of the OFAC-sanctioned Iranian rial for other cryptocurrencies.
BingX facilitates over $974 million in daily trading volume, ranking it among the top 20 cryptocurrency exchanges globally. The exchange is a registered financial services company in the Republic of Lithuania, with licenses to operate in the European Union and Australia. Compliance with U.S. OFAC sanctions and any sanctions imposed on Iran by their home countries or the European Union is required.
Despite these requirements, BingX openly seeks users based in Iran through its social channels and official website. The exchange was previously known as Bingbon before November 2021.
BingX was founded in 2018 by Josh Lu and claims to serve over 10 million users. The nationality of its current founder is unknown.
According to another BingX representative, Iran is on the list of countries with restrictions, but this does not entail a ban on providing services. Furthermore, the exchange advertises its Iranian rial services, stating 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 largest cryptocurrency exchange in the world, was reported to be serving Iranian citizens in July 2022. However, Binance denied the claim and emphasized its strict adherence to sanctions requirements. In November 2023, Binance agreed to a $4.5 billion plea deal with the U.S. Justice Department and the U.S. Treasury, admitting to inadequate anti-money laundering policies. Its former CEO, Changpeng Zhao, also pleaded guilty to Bank Secrecy Act violations.
In May 2023, Poloniex, another crypto exchange, paid a $7.6 million settlement to the OFAC for failing to retroactively screen users from Crimea, Cuba, Iran, Sudan, and Syria who had registered before the implementation of Know Your Customer controls.