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After it was found earlier that BINANCE flouted US sanctions on Iran, another exchange was found to have repeated it. Binance continued trading service for its clients in Iran despite US sanctions, it was found earlier in July. Meanwhile, another crypto exchange based in the U.S. is suspected of violating sanctions by allowing Iran users to trade.
Kraken Suspected Of Violating Sanctions
According to a New York Times report, Kraken is under federal investigation for allowing users in Iran to buy and sell crypto assets. The report added that the U.S. authorities have been probing Kraken’s activities since three years now. The Treasury Department’s Office of Foreign Assets Control is expected to impose a fine, the report said quoting people in the know of affairs.
The issue of Kraken’s activities colliding with sanctions came to light in late 2019 thanks to a former employee’s accusations. In November 2019, Nathan Peter Runyon alleged that Kraken had been generating revenue from users in sanctioned jurisdictions. As per the report, the authorities took up the issue and began probing the company’s transactions in Iran. The report also claims that the crypto exchange is also believed to have operated in other sanctioned countries. “Kraken’s customers have also opened accounts in Syria and Cuba, two other countries under U.S. sanctions,” it said.
Crypto Sanctions Against Russia
Earlier this year in March, the U.S. Treasury Department said sanctions levelled against Russia also include checks on digital currencies. The authorities also warned crypto companies against dealing with sanctioned entities. At the time, the U.S. authorities warned of action against entities that transact with Russia. Action would be taken against anybody bypassing sanctions against Russia, including through the use of digital currencies, it said.
However, cryptocurrency transactions are difficult to control as they operate through a decentralized mechanism of blockchain. The technology leaves authorities with less power to have control, unlike with the traditional banking systems.
