Binance launches internal investigation following KYC bypass rumors

A recent article surfaced alleging that Binance employees and volunteers were assisting Chinese users on how to bypass Know Your Customer (KYC) and other security protocols. 

However, speaking to Cointelegraph a spokesperson from Binance clarified that employees are “explicitly forbidden” from supporting users in circumventing any laws or policies. The spokesperson also said the company is taking action following the recent allegations.

“We have launched an investigation into employees who may have violated our internal policies including wrongly soliciting or making recommendations that are not allowed or in line with our standards.”

They went on to say that Binance has implemented “advanced detection tools” which allow the exchange to crack down on users in restricted jurisdictions, along with actively blockchain VPNs from said areas.

According to the exchange it is “extraordinarily rare” that workarounds are possible. Binance claims to have “multiple manual and AI-driven processes” which help prevent users from bypassing any critical security procedures.

“Furthermore, users who are found to have used any sort of workaround to avoid local law are restricted immediately.”

Changpeng Zhao, the co-founder of Binance, has made no comment on the situation at the time of writing, despite his regular commentary on social media. Previously, Zhao took to Twitter to address rumors which had spread via the Chinese messaging platform WeChat.

Related: Binance.US, Alameda, Voyager Digital and the SEC — the ongoing court saga

Prior to this incident, Binance had announced in February that it would delist low-trade volume nonfungible tokens (NFTs) that were listed before the implementation of its new KYC rules. 

In October 2022, the exchange was hit with allegations that it “swerved scrutiny” from regulators in the United States and the United Kingdom due to incidents in its operating history.

Previously Binance has been open about its employee policies. In January, the exchange confirmed that its employees must adhere to a 90-day period prior to trading any digital assets to prohibit insider trading.

Magazine: US enforcement agencies are turning up the heat on crypto-related crime

Source: Read Full Article