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Iran Signals Openness to Crypto While Binance Reaches Out to Pakistanis

Iran is allowing trade settlements using cryptocurrencies and Binance extends its cooperation to authorities in Pakistan in combating crime.

Multi-Faceted Role

The Central Bank of Iran and its Ministry of Trade agree that international trade settlement can be made through cryptocurrencies. A local news agency reported that an agreement has been reached to allow for importers and exporters to make payments using cryptocurrencies. 

Source: A new payment mechanism will provide both economic and business opportunities to the Iranians for international deals

In an unrelated event, the Federal Investigation Agency (FIA) of Pakistan received Binance’s assurance that the crypto exchange will cooperate in an investigation into a million dollar scam. Imram-Riaz, the head of FIA’s cyber crime department, received confirmation on Friday that Binance will provide its fullest support to the agency. 

Source

Crypto transactions are becoming increasingly common as it starts to gain traction as a mainstream asset class. Countries that are struggling economically like Iran realizes that cryptocurrency is a form of financial liberation. 

Centralized exchanges are starting to play the role of financial institutions whereby large volumes of transactions are processed each day. Information and data for each transaction will be available because of the implementation of the mandatory Know-Your-Customer (KYC) and Anti-Money Laundering (AML) protocols. 


International Trade

Iran has been subjected to US imposed sanctions and the use of the US dollar is restricted. The US dollar is the preferred mode of settlement for most international trade. Iran switched to Euro in 2018 because of its strained relationship with the US. 

International trade settlements are dominated by the US dollar but institutions and establishments are starting to recognise crypto assets as a mode of payment. Payment processing companies like Visa, Mastercard and Paypal are ensuring that their platforms are crypto friendly because its users are demanding for it. This paradigm shift is underlined by the need for a mode of settlement that is fast, cost efficient and safe.  


Binance’s Role 

Binance as the leading crypto exchange platform has a prominent role to play. It is by far the leader in terms of number and volume of transactions and user base. Therefore, Binance carries with it a heavy responsibility in setting the pace and industry practices for other operators. 

Source: Binance adopts global standards in crime prevention as part of its operations

Centralized exchanges have an important role to play. Platforms such as Binance are taking the lead by incorporating crime prevention tools. In early July, Binance integrated CipherTrace Traveler as part of its commitment towards combating crime. Implementing additional features and protocols will involve resources but it is necessary to guarantee a safer environment for all.

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