Crypto Exchanges Flout Sanctions With Iranian Market Access

Major cryptocurrency exchanges are systematically violating U.S. Treasury sanctions by continuing to serve Iranian users, undermining the industry's credibility. Platforms like LBank actively facilitate access through Iranian IP addresses, local ID verification, and rial conversions—clear breaches of OFAC regulations that carry severe penalties.

Evidence shows deliberate accommodation rather than oversight. LBank's Telegram channels confirm unrestricted access for Iranian users, while geo-targeted features suggest intentional design for sanctioned markets. Such violations create unfair competitive advantages at a time when regulators are increasing scrutiny of crypto compliance failures.

The pattern highlights an industry-wide dilemma: exchanges balancing growth against regulatory risk. While some platforms restrict sanctioned jurisdictions, others exploit the gray areas of decentralized finance to capture forbidden markets—a strategy that may backfire as enforcement actions intensify.