Last week, Bainance Exchange, the world’s largest digital currency exchange with a large number of Iranian users, lowered its daily withdrawal limit from 2 bitcoins per day to 0.06 bitcoins. The main question is what does this recent Bainance move mean and what aspects of Iranian users’ activity are affected?
Increasing pressure from lawmakers around the world has forced Bainance to serve its users more cautiously, according to CurrencyDigital. Reducing the daily withdrawal ceiling, reducing leverage for new traders and stopping stock tokens are some of the things Binance has done to win the hearts of lawmakers.
Another new feature of Binance is the ability to add profit and loss reports from users’ trading activities to present to tax experts and prepare tax reports; This means that this exchange is preparing the ground for more acceptance of the laws of different countries.
In the meantime, reducing the daily withdrawal ceiling may have the most to do with Iranian users; Because many Iranians, despite all the restrictions, operate in this exchange. On the other hand, it should not be forgotten that in the future, Bainance may impose more restrictions on unauthorized accounts; Because Bainance seems to seek maximum compliance with the laws of different countries.
The danger remains the same
Last week, Bainance announced that it was lowering its daily withdrawal limit from 2 bitcoins to 0.06 bitcoins to encourage users to complete the Customer Authentication Process (KYC). This restriction is only for accounts that have only completed the initial steps of authentication (such as email verification, phone number, etc.) and have not authenticated with their credentials.
This change will take effect immediately for new users and will take effect for other users starting in the morning (August 4) 2021 (August 13). The daily withdrawal limit will be the same for the former 100 bitcoins for those who complete their authentication process. Obviously, due to international sanctions, it is not possible for Iranian users to authenticate.
About this change, Arzdigital has interviewed several prominent experts and most of them believed that the risk for Iranian Bainance users is the same as before and only the withdrawal ceiling has been reduced. Prior to the change, Bainance had made it clear that it would not provide services to residents of countries under sanctions, including Iran.
Considering the price of Bitcoin and the price of the dollar at the present time, and considering the fact that Iranian users are not able to authenticate in Bainance, each user will be able to withdraw 63,800,000 million Tomans daily. But is this amount of withdrawals on a daily basis enough for Iranian users?
As we have said, since most Iranian Bainance users trade with unauthorized accounts in this exchange, lowering the daily withdrawal limit of unauthorized users will limit their activities more than before, however, as before, the possibility of blocking Iranian users’ accounts remains. There is, yet there is no new threat to Iranian Bainance users.
According to experts, Bainance is still not a safe place for Iranian users and the “gray space” for these users in Bainance remains strong. In this regard, one of the Iranian users of Bainance asked the support of this exchange that what will happen to unauthorized users due to the recent restrictions on the withdrawal ceiling? In another section, he raises the question of whether or not this restriction is likely to change in the future.
In response to this Iranian user, Bainance Support Manager says:
The daily withdrawal limit for unauthorized users (accounts that enter only basic information are also considered unauthorized) will be 0.06 bitcoins. New restrictions apply immediately to new users and apply to older users from the morning of August 4th.
According to Bainance Support, full authentication of users is subject to the submission of photo IDs and selfies. The support officer writes:
The 0.06 bitcoin limit is for digital currency withdrawals, and users are required to authenticate to withdraw with Fiat currencies. However, this [محدودیت] Our latest announcement [بایننس] And there is a possibility of change.
Following this message, the Iranian user asks support: “Is it possible for Bainance to change this restriction?” “Is authentication mandatory for all unauthorized accounts?” In response to this question, Bainance Support Officer writes:
Due to security requirements, we [بایننس] We ask all users to authenticate their account; Therefore, withdrawal restrictions for users who have not completed the authentication process may change in the future.
According to the above, it can be said that in the current situation, Iranian users can still withdraw 0.06 bitcoins per day from the exchange by changing the IP and the like, and the way to operate in this exchange has not been completely closed yet.
However, according to experts, it should not be forgotten that Bainance has to increase its restrictions in order to comply with legal authorities, and it is possible that in the future we will see a change in the rules of widespread withdrawal or blocking. An expert who did not want to be named told Arzdigital that if a decision is made to block it extensively, Bainance will most likely give users a chance to withdraw. However, according to the expert, “nothing is unlikely, given Iran’s poor international position.”
Although the risk of blocking for Iranian Bainance users is increasing day by day, many of them continue to operate in Bainance with a new withdrawal limit of 0.06 bitcoins per day. According to experts, although the probability of blocking the Iranians’ account in Bainance is not zero, this exchange may offer an opportunity to withdraw funds before imposing extensive blockades. Whatever it is, as before, there is still an atmosphere of uncertainty and uncertainty.
Bainance is likely to do more in the future to satisfy financial lawmakers around the world. to theSaid Changes Peng Zhao, CEO of Bainance, the exchange will move away from its core business model, which is a decentralized exchange, and will become a fully legal financial institution.
In general, it can be said that Bainance’s new measures to comply with international law have limited the activities of the users of this exchange more than they pose a threat; In fact, Bainance seeks to enact new laws that will legalize the exchange’s activities in all countries and allow it to operate, although it is unlikely that Iranian users will fall victim.