Nobitex responded to the Reuters report regarding the relationship with Binance

News ID: ۷۵۱۹۷۳

06 November 2022

The Reuters news agency recently published a report that since 2018, Iranians have made 8 billion dollars of financial transactions on the platform of the Binance international exchange. Also, in this report, the relationship between Binance and Nobitex is discussed. In this context, Nobitex has published a statement as follows:

In recent years, following the implementation of US sanctions laws, the activity of Iranian users in international exchanges, including Binance, has been severely limited and the assets of some have been blocked in these platforms. In this situation, Nobitex, as a native and safe platform that has used all security protocols to protect users’ assets, has tried to provide safe buying and selling conditions for Iranians. In this way, the people who were directly affected by the sanctions were able to use the opportunity to invest in the cryptocurrency market.

The Reuters report cited data from the firm, which is an active business in the field of blockchain analytics and cryptocurrency tracking services. However, the reports of this institution are prepared with a commercial and marketing perspective, with the aim of cooperating with governments and economic organizations, and the data of the recent editions of this institution are accompanied by serious contradictions.

In its previous reports, “Chain Analysis” intentionally or unintentionally distorted numbers and figures. An example of the statistical contradictions of this company’s reports is part of the information of the 2021 Chainalysis report, in which statistics of the daily share of Bitcoin transfer from Mining pools have been provided to all Iranian platforms (an average of 343,000 dollars per day). Actually, we will reach a figure of around 125 million dollars per year for all Iranian platforms. This data, even at this limited level, is in serious contradiction with the other data of the report of the same year, that is, the announcement of Nobitex’s share of 195 million dollars in the transfer of Bitcoin to Binance.

According to Nobitex, the published data of Chainalysis’ recent report also has several technical errors and its credibility is seriously damaged. In the Reuters report, which was published citing Chainalysis statistics, the financial transaction of 8 billion dollars by Iranians in the Binance exchange was highlighted. Referring to these statistics and figures is misleading in that it may create the impression that this figure was unilaterally transferred from Nobitex to Binance, in the event that the claimed number is the total number of transactions made by Iranian users with Binance since the year It shows 2018. While a user may have moved a certain amount of assets multiple times between the internal and external platform and wallet for trading purposes. The majority of these transfers are especially among people who earn money from the difference in market prices. In the Reuters report, the sum of all these transactions is introduced as the volume of transactions, without mentioning that these amounts were circulated many times. Emphasizing this volume of financial exchange, without referring to the number of transactions and the net amount of output or input, is a kind of distortion of reality that was done in line with specific goals.

We must emphasize that blockchain is basically a network in which all its members are more or less interconnected. That is, one bitcoin can circulate many times between Iranian and international exchanges and different wallets. Titles such as financial exchanges between two brands are only proposed with destructive purposes, because the same fact applies to the relationship between two domestic brands or Nobitex with another foreign brand. The point of the story is that in this report, it is deliberately stated that Nobitex had such exchanges with Binance without an intermediary or mainly with one or more intermediaries, while it is possible that such a connection with an intermediary in the same volume or even more with other brands and for The confusion of the audience has been overcome.

Exchanges serve only authenticated users in line with their responsibility to keep transactions transparent and healthy. Also, if necessary, it is possible to deal with crimes in this area by order of judicial institutions. In order to prevent any violations and to make the space healthy, Nobitex has made the authentication mechanism mandatory when registering users.

In the Reuters report, conducting cryptocurrency transactions in line with actions such as circumventing sanctions or withdrawing currency is interpreted as not correct. As a rule, these transactions were not one-way and from the Iranian platform to the foreign platform or personal wallets, and there was a back and forth process. On the other hand, platforms such as Binance, which have strict rules for identifying users, can never be a suitable destination for circumventing sanctions, and there are much simpler solutions such as decentralized platforms. Therefore, it is clear that the majority of such claims were simply not considering the truth of the purpose of users in using a foreign platform for trading.

Contrary to Reuters’ claim, Nobitex has always advised its users not to use foreign platforms for cryptocurrency trading. A clear example of this is clearly stated in the terms and conditions of using Nobitex services. This point is evident in many posts and contents of the Nobitex blog. However, Nobitex has never deprived users of their right to withdraw cryptocurrency and assets, and will not violate its ideal of a world without restrictions for Iranians and all people of the world. It should be mentioned that Nobitex has created several technical facilities such as cold storage, multi-signature wallet structure, etc., with the aim of keeping users safe and encouraging them to use the internal platform. Naturally, no business encourages its users to use competing platforms and prefers users to invest and trade on the same platform instead of choosing other platforms.

Nobitex, as a 100% private and independent company, started operating in March 1996 with the aim of responding to the need for a native exchange platform for Iranians. This company does not have any affiliation with the governing institutions and has maintained the composition of its co-founders from the beginning until now, all of whom were PhD and MA graduates of Sharif University of Technology.

As in the past five years, Nobitex, relying on the knowledge of its experts, continues to provide safe and fast services without any restrictions to Iranian users of the cryptocurrency world. Also, the ideals of a decentralized world have prompted us to develop our field of activities beyond Iran.

In the end, we emphasize that as long as Iranian users carry out their activities on domestic platforms, there will be no risk to their cryptocurrency assets, which cannot be sanctioned.