Binance has been the subject of scrutiny following the recent escalation in the Israel-Palestinian conflict. Reportedly, the exchange has blocked all Palestinian accounts at the the request of the Israeli Defense Forces (IDF).
Binance has denied these allegations, insinuating that only a small number of accounts associated with illicit activities were involved.
Binance CEO Richard Teng has denied the allegations of a comprehensive prohibition, stating that the restrictions were strictly enforced on accounts that were involved in illicit transactions in compliance with international anti-money laundering laws.
The controversy emerged when Ray Youssef, CEO of NoOnes, accused Binance of suspending Palestinian users’ funds under IDF pressure and refusing to return them amid allegations of affiliations with a Gaza-based terrorist organization. These allegations have prompted apprehension regarding the potential for government interference and bias in the exchange.
Binance’s spot trading volume has decreased by 23% in the past month, a substantial decline from its previous market dominance. Yi He, Binance’s co-founder, confirmed that Palestinians can continue to utilize the platform without any restrictions, indicating that only a small number of accounts were affected.
Investor Simon Dixon criticized Binance’s heightened regulatory scrutiny, relating its current operations to those of a bank, and suggested that geopolitical influences may be at play. At the same time, the situation in the West Bank has deteriorated, with at least nine fatalities as a consequence of recent Israeli military operations in Jenin and other regions.
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