30. November 2023

Binance Launches Internal Probe After KYC Bypass Rumors

Binance Launches Internal Investigation

• Binance has launched an internal investigation after allegations that their employees and volunteers have helped users bypass KYC protocols.
• The crypto exchange states that employees are „explicitly forbidden“ from supporting users in circumventing any laws or policies.
• Binance claims to have multiple manual and AI-driven processes that help prevent users from bypassing critical security procedures.

Allegations of KYC Bypass

Recent reports suggested that Binance employees and volunteers were helping Chinese users bypass Know Your Customer (KYC) and other security protocols. Following the allegations, a spokesperson for the crypto exchange stated that it is taking action by launching an internal investigation into employees who may have violated company policies.

Advanced Detection Tools at Binance

In response to the allegations, Binance has implemented advanced detection tools to crack down on restricted jurisdictions, while actively blocking VPNs from these areas. Furthermore, the exchange claims to have „multiple manual and AI-driven processes“ that help prevent users from bypassing security procedures. Any user found to have used a workaround to avoid local law will be restricted immediately.

Changpeng Zhao’s Response

Changpeng Zhao, the founder and CEO of Binance has not made any public comment on the situation at this time despite his regular commentary on social media. In February of this year, Binance announced plans to delist low-trade-volume nonfungible tokens listed before its new KYC rules were implemented in October 2022.

Employee Policies at BInance

Binance has been open about its employee policies since January 2021 when they confirmed all staff must adhere to a 90-day period prior to trading any digital assets in order to prohibit insider trading