8 ms·

They're free to ignore US sanction laws as long as they don't want to receive money from US customers and US dollars from anyone.

olalonde 4y ago
That's exactly what they are doing. They created Binance US as a separate entity due to this issue (among others).
- JumpCrisscross 4y ago
  > exactly what they are doing Pretty sure the non-US Binance entity would like to be able to maintain dollar bank accounts, or let their executives and employees travel to America and allied territory. (Which is why they banned these users.)
  - olalonde 4y ago
    I don't believe that's how it works. There are plenty of businesses that do business with both Iran and USA, without apparent issue. Xiaomi (https://www.xiaomiiran.ir/ https://www.xiaomiiran.ir/), Samsung (https://www.samsung.com/iran/ https://www.samsung.com/iran/) or LG (https://www.lg.com/ir https://www.lg.com/ir) for example.
    - JumpCrisscross 4y ago
      > don't believe that's how it works It is. > Xiaomi for example Xiaomi was blacklisted [1]. Their CFO was arrested in Canada for fucking this up [EDIT: Nope!]. Xiaomi turned off their devices in Iran last year [2] in a bid to lift the restrictions. > Samsung There was a brief respite in sanctions during the nuclear deal. The pages you’re citing are from that era. Samsung withdrew from Iran [3]. Iran, for good measure, responded by banning them [4]. [1] https://www.cfo.com/accounting-tax/2021/01/xiaomi-and-cnoonc-added-to-list-of-blacklisted-chinese-firms/ https://www.cfo.com/accounting-tax/2021/01/xiaomi-and-cnoonc... [2] https://www.globaltimes.cn/page/202109/1234058.shtml https://www.globaltimes.cn/page/202109/1234058.shtml [3] https://asia.nikkei.com/Spotlight/Iran-tensions/Iran-sanctions-threaten-Samsung-and-LG-s-grip-on-local-market https://asia.nikkei.com/Spotlight/Iran-tensions/Iran-sanctio... [4] https://asiatimes.com/2021/11/iran-bans-goods-from-south-koreas-samsung-and-lg/ https://asiatimes.com/2021/11/iran-bans-goods-from-south-kor...
      - ionspin 4y ago
        > Their CFO was arrested in Canada for fucking this up If I recall correctly, CFO of Huawei was arrested in Canada, not Xiaomi.
        makomk 4y ago
        Yeah, and the thing that got Huawei in trouble was using a secret subsidiary to smuggle US-produced tech from US companies into Iran in violation of sanctions, not simply doing business with Iran themselves.
    - rtpg 4y ago
      The way this works in general is you build silos around these kinds of things (similar things happen when companies need to work on military tech, they end up isolating things to avoid some liability transfers). This is also beyond the general thing which is that you often have national-level subsidiaries that are only "sales partners" or the like. I do think there's also some differences depending on the kind of goods sold. Binance existing and theoretically helping with circumvention of sanctions probably make it a beautiful target.
  - dingleberry420 4y ago
    https://www.youtube.com/watch?v=KtJJC0nWs9s https://www.youtube.com/watch?v=KtJJC0nWs9s is a pretty good explanation of how this works.
    - deleted 4y ago
      [deleted]
rwmj 4y ago
Or have any company officer travel to or through the US any time in the future. I once interviewed for a company that ran gambling websites (legal in the UK) and it was explained to me that if I worked there I would never be able to travel to the US. I declined the job. Some time later one of their executives was on a plane which was diverted to a US airport and he was arrested and charged.
- sdfhdhjdw3 4y ago
  Would you link us the news report on this, please?
  - Miner49er 4y ago
    Idk about the person OP is talking about, but it's definitely happened: https://www.nytimes.com/2006/07/18/technology/18gamble.html https://www.nytimes.com/2006/07/18/technology/18gamble.html
    - rwmj 4y ago
      Yes that was the company. I wasn't interviewed by him, in fact I don't know if he would have been working there at that time. Looks like his plane wasn't diverted, but he made the mistake of stopping over on a flight from the UK to Costa Rica.
- akudha 4y ago
  Wow. I don't understand this - this plane was diverted to a US airport, just to arrest the executive? Was he a U.S citizen living in some other country? If not, was he arrested because the company had customers/users on U.S soil? Also, what about the other passengers in the plane? Annoying a bunch of passengers just to arrest one guy for working for a gambling website seems excessive, no? Or was it a private plane?
  - decremental 4y ago
    It sounds like the plane being diverted was incidental.
seydor 4y ago
I'm not holding my breath that the kind of businesses registered on the cayman islands will close down in ethical protest. More likely they ll lobby americans to look away
Scoundreller 4y ago
You’d also want to avoid any country that the US has an extradition treaty with. https://en.m.wikipedia.org/wiki/Extradition_case_of_Meng_Wanzhou https://en.m.wikipedia.org/wiki/Extradition_case_of_Meng_Wan...

olalonde 4y ago

That's exactly what they are doing. They created Binance US as a separate entity due to this issue (among others).

JumpCrisscross 4y ago
> exactly what they are doing Pretty sure the non-US Binance entity would like to be able to maintain dollar bank accounts, or let their executives and employees travel to America and allied territory. (Which is why they banned these users.)
- olalonde 4y ago
  I don't believe that's how it works. There are plenty of businesses that do business with both Iran and USA, without apparent issue. Xiaomi (https://www.xiaomiiran.ir/ https://www.xiaomiiran.ir/), Samsung (https://www.samsung.com/iran/ https://www.samsung.com/iran/) or LG (https://www.lg.com/ir https://www.lg.com/ir) for example.
  - JumpCrisscross 4y ago
    > don't believe that's how it works It is. > Xiaomi for example Xiaomi was blacklisted [1]. Their CFO was arrested in Canada for fucking this up [EDIT: Nope!]. Xiaomi turned off their devices in Iran last year [2] in a bid to lift the restrictions. > Samsung There was a brief respite in sanctions during the nuclear deal. The pages you’re citing are from that era. Samsung withdrew from Iran [3]. Iran, for good measure, responded by banning them [4]. [1] https://www.cfo.com/accounting-tax/2021/01/xiaomi-and-cnoonc-added-to-list-of-blacklisted-chinese-firms/ https://www.cfo.com/accounting-tax/2021/01/xiaomi-and-cnoonc... [2] https://www.globaltimes.cn/page/202109/1234058.shtml https://www.globaltimes.cn/page/202109/1234058.shtml [3] https://asia.nikkei.com/Spotlight/Iran-tensions/Iran-sanctions-threaten-Samsung-and-LG-s-grip-on-local-market https://asia.nikkei.com/Spotlight/Iran-tensions/Iran-sanctio... [4] https://asiatimes.com/2021/11/iran-bans-goods-from-south-koreas-samsung-and-lg/ https://asiatimes.com/2021/11/iran-bans-goods-from-south-kor...
    - ionspin 4y ago
      > Their CFO was arrested in Canada for fucking this up If I recall correctly, CFO of Huawei was arrested in Canada, not Xiaomi.
      - makomk 4y ago
        Yeah, and the thing that got Huawei in trouble was using a secret subsidiary to smuggle US-produced tech from US companies into Iran in violation of sanctions, not simply doing business with Iran themselves.
  - rtpg 4y ago
    The way this works in general is you build silos around these kinds of things (similar things happen when companies need to work on military tech, they end up isolating things to avoid some liability transfers). This is also beyond the general thing which is that you often have national-level subsidiaries that are only "sales partners" or the like. I do think there's also some differences depending on the kind of goods sold. Binance existing and theoretically helping with circumvention of sanctions probably make it a beautiful target.
- dingleberry420 4y ago
  https://www.youtube.com/watch?v=KtJJC0nWs9s https://www.youtube.com/watch?v=KtJJC0nWs9s is a pretty good explanation of how this works.
  - deleted 4y ago
    [deleted]

rwmj 4y ago

Or have any company officer travel to or through the US any time in the future. I once interviewed for a company that ran gambling websites (legal in the UK) and it was explained to me that if I worked there I would never be able to travel to the US. I declined the job. Some time later one of their executives was on a plane which was diverted to a US airport and he was arrested and charged.

sdfhdhjdw3 4y ago
Would you link us the news report on this, please?
- Miner49er 4y ago
  Idk about the person OP is talking about, but it's definitely happened: https://www.nytimes.com/2006/07/18/technology/18gamble.html https://www.nytimes.com/2006/07/18/technology/18gamble.html
  - rwmj 4y ago
    Yes that was the company. I wasn't interviewed by him, in fact I don't know if he would have been working there at that time. Looks like his plane wasn't diverted, but he made the mistake of stopping over on a flight from the UK to Costa Rica.
akudha 4y ago
Wow. I don't understand this - this plane was diverted to a US airport, just to arrest the executive? Was he a U.S citizen living in some other country? If not, was he arrested because the company had customers/users on U.S soil? Also, what about the other passengers in the plane? Annoying a bunch of passengers just to arrest one guy for working for a gambling website seems excessive, no? Or was it a private plane?
- decremental 4y ago
  It sounds like the plane being diverted was incidental.

seydor 4y ago

I'm not holding my breath that the kind of businesses registered on the cayman islands will close down in ethical protest. More likely they ll lobby americans to look away

Scoundreller 4y ago

You’d also want to avoid any country that the US has an extradition treaty with. https://en.m.wikipedia.org/wiki/Extradition_case_of_Meng_Wanzhou https://en.m.wikipedia.org/wiki/Extradition_case_of_Meng_Wan...