In a post, Binance announced that Lebanese citizens can now register and open an account on the platform using their driver license as their identification for KYC ( know your customer) procedure.

Binance, one of the world’s largest crypto exchanges, has been a supporter of the Lebanese and was one of the first to in relief efforts after August 2020 explosion.

It has expanded its presence in the MENA region and has been posting job opportunities for positions in countries such as the Kingdom of Saudi Arabia and others. In addition Binance exchange offers solutions for crypto exchanges in the region such as Fasset Exchange in Bahrain.

This announcement comes at a time when more and more Lebanese are looking at crypto as a solution to the devaluation of Lebanese Lira and financial situation in the country. Prior to this UNLOCK had talked about Fluus and its offering in Lebanon.

Last week, Lebanon witnessed the opening of Bitcoin shops that not only provide education on cryptocurrencies as well as assistance in trading.

The Lebanese government has not regulated the purchase and trade of cryptocurrencies, while the Central Bank of Lebanon has discussed launching a Central Bank Digital Currency on several occasions.

Cryptocurrencies have become popular in countries with high inflation and financial crisis. Elements of this popularity started in Lebanon in 2019 after the revolution, and as the financial situation in Lebanon deteriorated and has been growing ever since.

UNLOCK contacted Mr. Omar Rahim, Managing Director of Binance MENA, for comments on this announcement. Mr. Rahim stated, ” We are delighted to further support our Lebanese users. Binance is always looking to improve its user experience and this move represents the first of many steps to make acess to our products easier for our lebanese community. We will continue to listen to our users and make improvements to our platform in line with demand.”

Does Binance Work in Lebanon?

No, while Lebanese citizens can use their driver’s license to open an account, Binance is not officially available in Lebanon. The Central Bank of Lebanon has issued a warning against using cryptocurrency exchanges that are not licensed in the country. This means that Lebanese users may face difficulties opening accounts, depositing or withdrawing funds, and accessing customer support.

Workarounds for Lebanese Users:

Does Binance work in Lebanon? While Binance is not officially available, there are some workarounds that Lebanese users have reported using:

• Using a VPN: Some users have reported being able to open Binance accounts and access the platform by using a VPN to mask their location. However, this is not a foolproof method and may violate Binance’s terms of service.
• Using P2P trading: Binance offers a peer-to-peer (P2P) trading platform where users can buy and sell cryptocurrency directly from each other. This may be an option for Lebanese users to buy and sell cryptocurrency, but it is important to be aware of the risks of P2P trading, such as scams and fraud.

Risks and Considerations:

Even if you are able to access Binance using a workaround, there are still several risks and considerations to keep in mind:

• Binance may be banned in Lebanon in the future: The Lebanese government has not yet regulated cryptocurrencies, but it is possible that they may ban Binance or other cryptocurrency exchanges in the future.
• Difficulty withdrawing Lebanese pounds: It may be difficult or impossible to withdraw Lebanese pounds from Binance. You may need to convert your cryptocurrency to another currency, such as USD or EUR, before you can withdraw it. ( lebanese banks are not supposed to accept money from crypto exchanges, neither send money to it, but many people are buying stablecoins and on board on exchanges for trading. It is easy to exchange crypto and stablecoins with specific unofficial exchange offices ) 
• Risk of fraud and scams: There is always a risk of fraud and scams when using cryptocurrency exchanges. Be careful of anyone who offers to help you open a Binance account or buy or sell cryptocurrency.

Alternative Cryptocurrency Exchanges:

There are a few alternative cryptocurrency exchanges that are available to Lebanese users, such as:

• BitOasis: A popular exchange in the Middle East and North Africa region that is regulated by the Dubai Financial Services Authority. ( not anymore, their license is pending now, and you need a bank account in the UAE to be able to on board)
• Coinmama: A peer-to-peer exchange that allows users to buy and sell cryptocurrency with Lebanese pounds. ( not a good neither well known exchange)
• LocalBitcoins: Another peer-to-peer exchange that allows users to buy and sell cryptocurrency with local currency.

Definitions:

• Cryptocurrency: A digital or virtual currency that uses cryptography for security.
• Blockchain: A distributed ledger technology that stores and verifies transactions.

Historical Information:

• Bitcoin, the first and most well-known cryptocurrency, was created in 2009.
• Binance was founded in 2017 and has quickly become one of the most popular cryptocurrency exchanges in the world.

Profiles of Relevant People:

• Changpeng Zhao (CZ): The founder and CEO of Binance.( not anymore )
• Riad Salameh: The governor of the Central Bank of Lebanon. ( not anymore)