Binance Seizes Palestinian Crypto Assets because Israel Rules?

Bittime - She incident involved one of the world's largest cryptocurrency exchanges, Binance. The news circulating stated that this company had frozen crypto funds belonging to Palestinians at the request of the Israeli authorities. 

However, Binance firmly denied these accusations and emphasized that freezing actions were only carried out against a small number of accounts related to illegal activities.

Early Accusations Against Binance

This controversy began when Ray Youssef, founder of the crypto peer-to-peer (P2P) platform Paxful and CEO of Noones P2P, revealed surprising information via his social media account on August 26. 

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Youssef claimed that Binance had confiscated funds from all Palestinians at the request of the Israel Defense Forces (IDF). He even predicted that similar measures might be implemented against users from other countries such as Lebanon and Syria in the future.

According to the source quoted by Youssef, Binance argued that the action was based on a letter from the Israeli Ministry of Defense. 

The letter, signed by Paul Landes of Israel's National Bureau of Countering the Financing of Terrorism in November 2023, stated that the anti-terrorism law allows the Minister of Defense to carry out "temporary confiscation of the property of declared terrorist organizations", including cryptocurrency funds.

Binance Denies Withdrawing Crypto Funds from Palestine

Responding to this news, Binance quickly denied the claim. Reporting from Cointelegraph, the company emphasized that the restrictions only apply to “a small number of user accounts associated with illegal funds.” 

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Binance also emphasized that it complies with “internationally accepted sanctions laws, just like other financial institutions.”

However, Binance was reluctant to provide further details regarding the exact number of users affected. They also have no opinion about when exactly the restrictions will be implemented. 

Data from web analytics resource SimilarWeb shows that Palestine accounted for only about 0.05% of total visits to the Binance site in the past year. This figure is equivalent to countries such as El Salvador (0.06%), Albania (0.06%), and Malta (0.03%).

This incident has once again sparked debate around the role and responsibilities of cryptocurrency platforms. This is concerned with maintaining a balance between regulatory compliance and protecting user rights. 

On the one hand, Binance is required to comply with international regulations and cooperate with law enforcement authorities. But on the other hand, the act of mass freezing of funds can be considered a violation of the principles of decentralization and financial freedom that are the foundation of blockchain technology.

Binance's Hope After This Case

Despite this controversy, Binance expressed its hope that sustainable peace will be created in the region. Meanwhile, the global crypto community continues to monitor developments in this situation closely. 

Given, its potential impact on the future of cryptocurrency regulation and adoption at the international level.

This case is an important reminder for cryptocurrency users of the importance of the principle "not your keys, not your coins" - a popular adage that emphasizes the importance of storing crypto assets in a personal wallet rather than on a centralized exchange. 

Going forward, it is hoped that there will be a more open dialogue between cryptocurrency platforms, regulators and the user community to find solutions that can protect the interests of all parties without sacrificing the innovation and financial freedom offered by blockchain technology.

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You can buy and sell crypto assets in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Learn How to Buy Crypto on Bittime.

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