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Binance insiders allegedly helping customers bypass KYC norms

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Binance insiders allegedly helping customers bypass KYC norms

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  • A new CNBC report claimed that Binance insiders were allegedly assisting users in circumventing security protocols.
  • These insiders, termed ‘angels,’ have allegedly assisted customers bypass KYC norms.

Though the world’s largest cryptocurrency exchange, Binance [BNB] has made significant efforts to be a leader in transparency since FTX’s demise, a new CNBC report claimed that Binance insiders were allegedly assisting users with circumventing security protocols.

According to the report, a bunch of insiders have allegedly been assisting customers to circumvent the exchange’s Know Your Customer (KYC) norms.

It was only last week that Binance co-founder and CEO Changpeng “CZ” Zhao tweeted that the exchange will convert the remaining $1 billion funds in its Industry Recovery Initiative to “native crypto,” as there are “changes in stablecoins and banks.”

As per the CNBC report, over 220,000 users have registered in Binance’s official chat rooms. Users are reportedly able to access shared messages by circumventing the exchange’s KYC, residency, and verification protocols.

A Binance spokesperson told CNBC:

“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.”

China users bypassing Binance crypto ban

These messages allegedly came from accounts identified as Binance employees or trained volunteers, also known as “angels.” The report mentioned that these “angels” share techniques related to forging bank documents, falsifying addresses, and concealing the country of origin to help users obtain a Binance debit card.

This news has emerged as China continued to impose a strict ban on cryptocurrencies. In 2017, China banned cryptocurrency exchanges and cryptocurrencies altogether in 2021. Chinese users who circumvent KYC rules to gain access to Binance may face consequences if caught.

Some have urged the Chinese government to reconsider the crypto ban, but regulators have not budged. Meanwhile, Chinese officials are pressing ahead with plans for the digital yuan, its national central bank digital currency (CBDC). Millions of dollars have been spent on adoption efforts.

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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