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Crypto Currency Giant Continued Trades With Iran Amid US Sanctions

Iran International Newsroom
Jul 11, 2022, 14:39 GMT+1Updated: 17:40 GMT+1

Traders in Iran left Binance, the world’s biggest crypto exchange, only late 2021, despite US ‘maximum pressure’ sanctions imposed in 2018, Reuters said Monday.

Seven traders contacted by the agency said they had continued using Binance after the company in November 2018 told traders in Iran to close their accounts, while 11 others who failed to respond to Reuters confirmed on their LinkedIn profiles they had also continued trading crypto-currencies through Binance.

Iran has a complex relationship with crypto-currencies, which have both helped hide various kinds of trade from United States’ eyes and opened up opportunities for illegality. In May the Intelligence Ministry announced it had blocked over 9,200 accounts, belonging to 454 people, used for illegal or undeclared transactions of currency and digital currency, with the relevant trades amounting to 600,000 billion rials, around $2 billion.

However, many reports in Iranian media have indicated that large scale crypto mining has been taking place by influencial or well-connected networks and some Chinese companies have also been present in Iran using cheap, subsidized electricity.

A 2021 study found that 4.5 percent of global Bitcoin mining – worth then around $1 billion – was in Iran, leading to pressure on electricity supply in peak times and to repeated government assurances that the sector would be better regulated.

‘Proactive approach’

Binance, which leads the world’s $950 billion crypto industry, is owned by a holding company based in the Cayman Islands and therefore not liable to primary US sanctions. But ‘maximum pressure’ gave the US government powers to sanction third parties dealing with Iran’s banking sector, including the option of shutting them out of US markets.

Monday’s Reuters report suggested that the withdrawal of Iran-based traders from Binance came after September 2021, a month after the exchange tightened checks, including bringing in a requirement that customers verify identities rather than just register with an email address.

Iranian officials viewing a crypto mining set up discovered by police in 2021
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Iranian officials viewing a crypto mining set up discovered by police in 2021

In January, Reuters reported interviews with former Binance senior employees, internal mail and mail with national regulators, revealing earlier concerns over lax compliance. This was despite earlier claims, including by the chief financial officer that the exchange had a “proactive approach to detecting and squashing money laundering,” and long after Binance announced in August 2019 Binance that it included Iran – along with Crimea, Cuba, Syria, and North Korea – among “hard five sanctioned” jurisdictions.

Evading US monitoring was attractive in Tehran. “Cryptocurrency is a good way to circumvent sanctions and make good money,” Reuters was told by a trader named as ‘Ali,’ who said he had used Binance for around a year.

Tightening US pressure?

The continued presence of Iranians in the exchange was well known in the company, and regularly joked about by insiders. By September 2019, Tehran was among the top cities for followers of Binance's Instagram page, ahead of New York and Istanbul.

Now with 120 million users offered access to a variety of digital currencies and derivatives, Binance was founded in 2017 by ‘CZ’ – its chief executive officer Changpeng Zhao – and last month hired soccer star Cristiano Ronald to help with promotion.

The reported withdrawal of Iranian traders from Binance since last year, perhaps with the company under US pressure, came as negotiations have continued between Iran and world powers over restoring the 2015 Iran nuclear deal and easing the US sanctions introduced when Washington quit the agreement in 2018.

The apparent tightening has occurred under the administration of President Joe Biden, which wants to restore the 2105 deal, rather than under previous President Donald Trump. Monday’s Reuters report highlighted US government expectations that companies should use tools to prevent traders concealing their locations through VPNs (virtual private networks) – which are common in Iran both to evade domestic screening and disguise international transactions.

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Pompeo Ridicules Biden’s Opinion About Middle East Security

Jul 10, 2022, 21:10 GMT+1

Former US Secretary of State Mike Pompeo has reacted to an opinion piece penned by President Joe Biden for the Washington Post, saying only Iran’s Supreme Leader agrees with you.

In a tweet on Sunday, Pompeo rejected Biden’s claim that the Middle East is “more stable and secure” now than during the presidency of Donald Trump.

“You've got to be kidding me,” he said, adding that former chief of the United States Central Command (CENTCOM) General Kenneth F. McKenzie or any Israeli, Emirati, Afghan or Saudi citizen can testify that Biden is wrong.

Both former and current CENTCOM commanders called Iran the most destabilizing force in the Middle East.

“Only the Ayatollah agrees,” Pompeo said, referring to Ali Khamenei who usually tries to portray the region as more stable and tranquil than it truly is.

The US President said that when he took office Washington was “isolated and alone” at the United Nations Security Councill on the issue of Iran, as his predecessor had withdrawn from the 2015 nuclear agreement known as the JCPOA.

But the president also made a series of claims not exactly reflecting reality.

While there is more Western diplomatic coordination in dealings with Iran, the country has almost reached a nuclear threshold stage during Biden’s presidency and is violating more US oil export sanctions. Iran has now sufficient enriched uranium for one nuclear bomb.

Moreover, Biden’s claims about more stability in the Middle East also leave room for questions, as the US troops have been targeted at least 29 times since October 2021 without any military response, on the backdrop of dozens of Iran-backed Houthi attacks against Saudi Arabia in 2021 and 2022, with the aggression expanding to the UAE. Iran also continues its terror activities in the region, as recent events in Turkey showed and pro-Iran groups such as the Hezbollah and Hamas maintain a highly aggressive posture toward Israel.

US Denies Visas to Iran’s Archery Team To Partake In World Games

Jul 9, 2022, 11:32 GMT+1

Iran’s Archery Federation announced on Saturday that the United States did not issue visas for the national team members, and they lost the chance to participate in the World Games. 

The 2022 World Games, an international multi-sport event meant for disciplines or categories that were not contested in the Olympic Games, was inaugurated in Birmingham, Alabama, on July 7. 

The president of the Iranian federation, Gholamreza Shabanibahar, said Iran plans to voice its official protest to the World Archery Federation in the coming days.

Last week, the Iranian karate team was also denied visas to enter the US for the World Games. Fox News claimed that the national team has direct links to the Revolutionary Guard (IRGC) that is designated as a terrorist organization by Washington. The report said opponents of the regime and Gold Star families – a name given to immediate family members of the killed US service members -- called for an immediate ban.

Beverly Wolfer, sister of Major Stuart Adam Wolfer, who was killed in Iraq on April 6, 2008 by an Iranian-backed terror cell, said, “Allowing Iranian sports teams to compete in the US legitimizes a terrorist regime by flying its flag and playing its anthem on American soil.” 

The captain of the karate team, Zabihollah Poursheib, told ISNA, "America did not issue visas for various teams, including wrestling, which shows that the Americans mix non-sports and political issues with sports."

The Islamic Republic, especially since Ebrahim Raisi took office, has appointed several former IRGC officers as top managers of government organizations such as sports federations.

In May, Canada Soccer cancelled a controversial friendly match with Iran’s national team after many Iranians objected to the visit of Iranian football officials.

Germany’s Iranian-Born Deputy Secret Service Chief Traveled To Iran

Jul 8, 2022, 18:40 GMT+1

An Iranian-born senior official of the German domestic intelligence agency has recently made a personal visit to Iran following the death of her father.

German-language news magazine Focus reported on Friday that Felor Badenberg, the vice president of the Federal Office for the Protection of the Constitution (BfV) violated the strict security precautions of her own agency by making the private trip to the Islamic Republic, as many European countries as well as the United States are struggling to secure the release of their citizens held in Iran.

Badenberg, who was only promoted to the top of federal intelligence agency on June 22 by Interior Minister Nancy Faeser, flew to the Iranian capital months ago to settle inheritance matters after the death of her father. She had been previously the head of the Right-Wing Extremism and Terrorism Department of the BfV since June 2020. 

All BfV employees are strictly prohibited from traveling to or staying in countries such as Iran, Syria or Russia as they are at risk of arbitrary detention, mainly over espionage. The BfV president and the minister were apparently aware of her trip but they declined to answer if they approved Badenberg's flight to Tehran. 

Security circles assume that the 46-year-old was under meticulous surveillance by the Iranian secret service after she landed in Iran, with a senior government official saying that Iranian counterintelligence has certainly recorded very precisely who she met and where, meaning that Badenberg's contacts and family in Tehran are now in peril. The risk of possible blackmail is too high, the report suggested. 


China's Imports Of Iranian Oil Push India To Ignore Russia Sanctions

Jul 8, 2022, 17:44 GMT+1
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Iran International Newsroom

China’s growing imports of Iranian oil is one reason why India has not followed Western sanctions on Russian crude, more than tripling imports in recent months.

An analysis published by Reuters on Friday quotes Indian officials who said, “New Delhi wants to avoid repeating what it sees as the mistakes of the past: abiding by sanctions on Iran and winding down oil imports, only to see its main regional rival China continue unpunished and benefit economically.”

The result has been a huge leap in volumes from Russia. In May, India imported 819,000 barrels per day (bpd), from 277,000 bpd in April and 33,000 bpd a year ago. Russia is now the second biggest supplier to India, replacing Saudi Arabia, while Iraq continues to be the largest.

India abided by US sanctions when former US president Donald Trump withdrew from the 2015 nuclear agreement known as JCPOA and gradually imposed full oil export sanctions on Iran. But China continued buying small volumes until November 2020 when it began noticeably increasing imports of illicit Iranian shipments.

China has kept up larger Iranian oil imports and is now buying massive amounts of Russian oil at discount prices. According to various estimates Tehran is exporting around 750,000 barrels per day and China is by far the largest buyer.

The Biden Administration, which decided early on to start talks with Tehran to revive the JCPOA, has failed to put effective pressure on China to stop imports of Iranian crude, which also come with a discount.

This has convinced India not to join Western sanctions against Russia, seeing itself shortchanged by abiding with US sanctions on Iran, while its rival is getting cheap oil.

"India has the attitude that if China is buying, why wouldn't we?" Robin Mills, chief executive of energy consultancy Qamar Energy told Reuters.

"India doesn't want to be in the same position again when China continued to buy Iranian oil and India stopped it."

Last month, Indian Foreign Minister Subrahmanyam Jaishankar posed the question at a conference: "Why are Indian money and funds coming from India seen as funding the war (in Ukraine), when Europe also buys gas from Russia?"

Referring to US sanctions on Iranian and Venezuelan crude, he said: "They (Europe and the US) have squeezed every other source of oil we have and then say you will not go to the market and get the best deal for the people; it's not a fair approach".

That all means New Delhi is reluctant to put US interests ahead of those of Russia, especially after it felt it was harmed economically by sanctions on oil from Iran and Venezuela.

Under Modi's nationalist government, India has pursued an assertive foreign policy, standing up to China in a two-year military border standoff and rejecting Western criticism of domestic policies some say are authoritarian and divisive.

Indian officials counter that what refiners are doing is legal and some European countries are still buying Russian oil and gas. Executives at state-owned and private refineries do not expect purchases of Russian crude to slow any time soon, the report said.

The United States has offered to sell more defense equipment and oil to India, for example, and New Delhi joined a U.S.-led trade partnership Indo-Pacific Economic Framework for Prosperity.

India is a member of the Quad alliance, which links it with the United States, Japan and Australia. India also signed a free trade agreement with Australia, talks for which initially began in 2011.

With reporting by Reuters

Khamenei Calls For Muslim Unity, Slams Western Values

Jul 8, 2022, 15:40 GMT+1
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Iran International Newsroom

In a message to world's Muslims, Ali Khamenei the ruler of the Islamic Republic of Iran has called for "unity and spirituality" while attacking Western values.

Khamenei’s Shiite followers call him the leader of the Muslim world, but his appeal reaches a tiny minority of Muslims who are overwhelmingly Sunni. He is known among many Sunnis as a man who has been sowing division among Muslims through his actions in Syria, Iraq, Yemen and elsewhere.

Meanwhile, his critics say that the extent of despotism and financial corruption in the system under his leadership leaves no room for spirituality.

Khamenei also repeated his favorite theory that the West tithers on the verge of defeat and collapse, at a time when the United States and Europe have shown strong unity to confront Russian aggression in Ukraine and NATO has just accepted Sweden and Finland as new members.

He said in his message on the occasion of the annual Hajj pilgrimage: "The Islamic nation can once again observe its unity and harmony in this clear, timeless mirror, and take this opportunity to turn away from factors that lead to disunity and division." The statement is in total contradiction to Khamenei’s and his government's behavior as they have not been able to maintain friendly ties with Muslim nations around Iran, including Saudi Arabia where millions of Muslims from other countries gather for the pilgrimage.

Nonetheless, Khamenei accused "the enemies of Muslim nations" of "weakening the two bolstering elixirs of Islamic unity and spirituality among our nations."

"The enemies of Islam strive to weaken spirituality by promoting a western lifestyle that is devoid of spirituality and which is rooted in a short-sighted, materialistic vision of the world," Khamenei reiterated. "on the other hand," he stressed "everyone must work to overcome the factors that foster division and disunity."

Khamenei in his message emphasized the role of ideas such as "Islamic awakening, resistance," and what he called "the political governance in the Islamic Republic of Iran," as the elements of unity in the Muslim world. This comes while his idea of resistance has so far been nothing more than reckless anti-Americanism and opposition to the coexistence of regional nations with Israel.

He further charged that " the Arrogant Powers, and the United States are worried about such a trend in the Islamic world and employ all their resources in order to confront it. The tactics they employ range from dominating the media and soft warfare, to warmongering and starting proxy wars, political espionage, and acts of inducement, and threatening, bribing and other forms of enticement." He added that "the United States is using Israel as a tool for this all-out effort." Khamenei simply ignored Israel's alliance with most of the region's Muslim nations to prevent the Islamic Republic's atrocities.

Meanwhile, on the same day that Khamenei's message was sent out, his senior adviser for international affairs, Former Foreign Minister Ali Akbar Velayati whose Cold War era ideas is believed to have some influence on Khamenei, said "Iran cannot tolerate NATO's presence at its borders," mindless of the fact, that Turkey, a NATO member state for more than 70 years is a neighbor of Iran.

Velayati also echoed Khamenei's belief that the United States and Europe have been in decline during recent years, without providing any proof for the claim.