Recently, a report surfaced claiming that Binance employees and volunteers were helping Chinese users bypass Know Your Customer (KYC) and other security protocols.
However, a spokesperson from Binance has clarified that the company explicitly forbids employees from supporting users in circumventing laws or policies.
Binance has launched an investigation into employees who may have violated its internal policies, including wrongly soliciting or making recommendations that are not in line with the company’s standards.
Binance has implemented advanced detection tools to crack down on users in restricted jurisdictions and is actively blocking VPNs from those areas. According to the exchange, it is “extraordinarily rare” for workarounds to be possible. Binance claims to have multiple manual and AI-driven processes in place to prevent users from bypassing critical security procedures.
Users who are found to have used any sort of workaround to avoid local law are immediately restricted. 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 that had spread via the Chinese messaging platform WeChat.
In February, Binance had announced that it would delist low-trade volume nonfungible tokens (NFTs) that were listed before the implementation of its new KYC rules. Prior to this incident, 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.
