• Binance, the world’s largest cryptocurrency exchange, is reportedly facing allegations that some of its employees have been helping Chinese customers to bypass the Know-Your-Customer (KYC) verification process.
• According to an investigation conducted by CNBC, techniques that can be used to evade the exchange’s KYC residency and verification systems were shared in Binance official Chinese language chat rooms which contain above 220,000 users.
• In response to these allegations, a Binance spokesperson noted that they have taken action against employees who may have violated their internal policies.
Binance Facing Allegations of Employees Helping Bypass Verification Process
Binance, the world’s largest cryptocurrency exchange in the industry has allegedly been facing allegations where some of its employees have reportedly been doing some elicit acts to dent the company’s reputation. According to an investigation conducted by CNBC, some employees at the exchange have been helping Chinese customers to bypass the Know-Your-Customer (KYC) verification process despite the region’s ban on the crypto market.
Techniques Shared in Chat Rooms with 220K Users
The reports highlighted that the techniques that can be used to evade the exchange’s KYC residency and verification systems were shared in Binance official Chinese language chat rooms which contain above 220,000 users. These shared techniques and chats came from accounts identified as Binance employees or Binance-trained volunteers known as “Angels.” Some of these techniques included forging bank documents or offering false addresses while others contained basic manipulation tips of the crypto exchange’s systems. Additionally, video guides and documents on how to falsify their country of residence in order to obtain Binance’s debit card were also shared among these chats.
Binance Takes Action Against Employees Violating Internal Policies
As a response to these allegations, a Binance spokesperson noted that they have taken action against employees who may have violated their internal policies such as wrongly soliciting or making recommendations not allowed or not in line with their standards. The spokesperson further added that “Binance employees are explicitly forbidden from suggesting or supporting users in circumventing their local laws and regulatory policies, and would be immediately dismissed or audited if found to have violated those policies.”
CEO CZ Addresses Allegations on Twitter
Binance CEO Changepeng Zhao “CZ” who is usually most active on Twitter addressing almost all queries related to his company took no time this time too by responding promptly regarding this issue stating: “We cannot control people’s words/actions outside of our platform – nor do we want such power.” He further added “I hope people understand we take such matters very seriously & will take appropriate actions whenever necessary.”
Conclusion
To conclude it can be said that while no one knows what action was taken against those involved yet; it appears though that Binance is taking this matter quite seriously as they should being one of top players in Crypto industry at present.