Binance, the second cryptocurrency exchange in the world by trading volume, has ceased to provide their services to residents of those countries, which imposed economic sanctions.
Users Binance from Iran, Belarus, Serbia, Bosnia, Myanmar and other countries with limited jurisdiction was denied access to the exchange immediately after sending notification of termination of services. Interestingly, Binance deny access to individuals and countries that fall under the sanctions of the U.N. Security Council and the Office of Foreign Assets Control of the U.S. Treasury Department, however, Russian customers are not affected.
Many Zimbabweans who wanted to buy and sell cryptocurrency on Binance, were in a difficult situation, since now only a very small number of exchanges allows them to register new accounts. Local financial regulators have already complicated the work of several popular trading platforms such as Golix, imposing a ban on the virtual currency. Immediately after this, the trade has moved underground ― to social media platforms like Whatsapp and on the P2P exchanges.
Cryptocurrency broker William Chui said:
"Trying to make a deal on Binance, I suddenly found out that they no longer can work in this platform. Where I can store these tokens, as Cardano (ADA) and Binance (BNB)? These assets are practically not supported by the wallets."
The Zimbabwe Democratic and Economic Recovery Act , under which the country was under sanctions during the last twenty years constantly became a subject of controversy. The United States argued that the sanctions are only intended for individuals and organizations who do not fulfill their obligations.
At the moment the Binanceuser agreement says:
"Accessing the exchange Binance and its services, you confirm that you are not included in any of the lists of trade or economic sanctions approved by the U.N. Security Council, and the Office of Foreign Assets Control of the U.S. Treasury Department or other relevant departments".
As a rule, these sanctions freeze the assets of specific countries restrict financial transfers to individuals or States, as well as suspend the provision of services to those included in the embargo list.
However, a complete ban and lock on the stock exchange and touched a simple Zimbabwean users are not in the list of U.S. sanctions. Such a radical ban has no clear basis in the terms of Binance. Rather, the exchange simply satisfies the interests of the American government, which is very strange, because it is located outside the United States.
It is noteworthy that many users have been disconnected without prior notice. For example, a 36-year-old woman from Harare, who kept their savings in tokens Ripple and Stellar on Binance, wasn’t even aware that a ban had taken effect:
"Only now I realized that my account is frozen. I can't even withdraw their own money."