How Iranians Bypassed the US Sanctions Against Iran
Updated: Jul 17
In 2018, the United States imposed many nuclear sanctions against Iran. One of them was stopping all business-related deals with the Middle-Eastern country. These laws were meant to boycott and sabotage Iran so they could limit the building of nuclear arms. These rules included all cryptocurrency deals as well, as the industry was and kept getting stronger every day. One of the main parties in crypto trading is Binance, a platform that allows people to trade, buy, sell, and hold multiple cryptocurrencies.
What the multimillionaire company didn't know is that users in Iran were still interacting with the platform despite the sanctions imposed on them up until September 2021. How? With the use of VPNs that redirected the connection to the United States. This software allows users to change the IP address (location online) to wherever they want. Funnily enough, Binance released an article on their platform called "A Beginner's Guide to VPNs". Afterward, the company's CEO Chanpeng Zhao said to interviewers that he was aware of users using VPNs to try to overcome rules in his platform, claiming that from then, Binance and other crypto companies just had to be more careful with the way they block users and impose rules.
We in Praegressum promote the benefits of the blockchain, which offers a more secure, transparent, and decentralized way to manage your financial means (specifically in crypto). But we also believe it must be legal and fair. The US government has different parties that try to regulate the use of cryptocurrencies and the blockchain. This doesn't mean that the rules set need to be extreme and completely alter the essence of DeFi. But if applied smartly enough, governments and organizations can benefit from it, creating opportunities for innovation. As the industry grows, governments and crypto organizations can collaborate for the better use of it. For example, a regulation where companies have to be more strict on identifying and doing background checks on their users, asking them to upload official IDs, could allow the industry to keep growing while stopping users to break any laws, becoming a game-changer for the future of the industry.