Binance Disables Access to Non-Resident Zimbabwean Users

News • 2021/06/04 • by

The Zimbabwean Binance block has now been extended to non-residents.

Following the block on Zimbabwean users, it was soon discovered that locals were accessing the platform through loopholes. Users were making use of virtual private networks to access their accounts. Now, the platform has chosen to block all users of the Zimbabwe nationality. This targets both residents and non-residents of Zimbabwe.

Major Updates

Binance shows compliance with the U.S. OFAC.

Binance to deactivate Zimbabwean accounts three days after issuing warnings.

Zimbabweans express displeasure over new policies.

Many believe the new policies will curb criminal activity.

Ever since the new CEO of Binance, there have been certain changes directed at Zimbabwean users. This consists of cutting off Zimbabweans from access to the platform. This was also coupled with warnings for locals to withdraw all of their digital assets.

Locals, however, turned to the use of VPNs to bypass this. This only brought about heightened directives leading to the ban of all Zimbabweans irrespective of location.

Any user of the Zimbabwean nationality who has submitted any documents proving so will no longer access Binance. It was all disclosed in an email letter addressed to a Zimbabwean user;

The issued letter warned that after three days, Zimbabwean Binance crypto accounts would be permanently deactivated hence, users were to liquidate their accounts.

Affected users did not take this lightly, as one anonymous user slammed back at Binance. The user accused Binance of targeting traders based on their “nationality rather than their location.”

The new measures had come without any announced or official reason behind them, although many have their speculations. It is believed that it may attempt to evade criminal activities like money laundering and others like tax bill aversion.

Ever since Brian Brooks, the new acting CEO of the Binance US Division and former banks regulator, took his seat, thus began the new directives. This brings us to another theory.

Conclusion

The Binance US division which is under the watch of the U.S. The Department of Justice (DOJ) may have placed these policies to evade sanctioning. A good reason they are choosing to strictly abide by the U.S. Office of Foreign Asset Control (OFAC).