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Allegations of Inside Help in Bypassing Binance’s KYC in China

Allegations of Inside Help in Bypassing Binance’s KYC in China

Binance, the world's largest cryptocurrency exchange, has been at the forefront of transparency and security in the industry since the FTX scandal.

However, a recent report by CNBC has claimed that insiders at the business have been helping users bypass the Know Your Customer Controls (KYC) with the aid of shared messages.

Insiders allegedly aiding Chinese customers to bypass KYC

According to the report, employees and volunteers at Binance have allegedly been aiding customers in China to subvert the exchange’s KYC protocols.

The platform’s official Chinese-language chat rooms, with more than 220,000 users, were identified as the source of these messages.

Users were reportedly able to access shared messages containing techniques to bypass the exchange’s KYC, residency, and verification protocols. The messages allegedly came from accounts identified as Binance employees or trained volunteers called “Angels.”

Techniques shared by insiders

The techniques shared included forging bank papers, attesting false addresses, and other simple system manipulations. A Binance spokesperson reportedly said that the company had taken action against employees who may have violated its internal policies, including wrongly soliciting or making recommendations that are not allowed or in line with the company’s standards.

Binance co-founder Changpeng Zhao has made no comment at the time of writing.

READ MORE: Coinbase and SEC Lock Horns Over Alleged Securities Law Breaches

Chinese ban on cryptocurrencies

This development comes as China continues implementing a severe ban on cryptocurrencies since 2021, with crypto exchanges outlawed in 2017.

Chinese users evading KYC rules to access Binance could face repercussions if uncovered. Some have called on the Chinese government to reconsider the crypto ban, but regulators have not budged.

Chinese officials continue plans for a CBDC

Meanwhile, Chinese officials continue to make plans for a central bank digital currency (CBDC), the digital yuan and have recently spent millions on adoption efforts.

Andrey Kunev

Reporter at CoinsPress

Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.

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