Binance Users Get Past KYC Controls With Help From ‘Angels’

Key Points:

• Binance employees and “volunteers” are helping users in China and other countries evade Binance’s Know Your Customer (KYC) controls.
• The revelation of these practices raises questions about the integrity of Binance’s operations and the extent to which it is willing to go to maintain its user base.

A recent report by CNBC has revealed that some Binance employees and “volunteers” are helping users in China and other countries evade Binance’s Know Your Customer (KYC) controls.

The report states that these individuals, who call themselves “Angels,” share a variety of techniques with other users on how to bypass these controls, including forging bank documents, falsifying addresses, and hiding the country of origin. These techniques not only allow users to access the platform and obtain a Binance debit card, but they also potentially facilitate illegal activity by allowing users to circumvent local laws and regulations.

The revelation of these practices raises questions about the integrity of BNB’s operations and the extent to which it is willing to go to maintain its user base. The company has faced regulatory scrutiny in the past, and this latest report could further damage its reputation.

In response to the report, a Binance spokesperson stated that employees are “explicitly forbidden” from suggesting or supporting users in circumventing local laws and regulations and that those who violate these policies “would be immediately dismissed or audited.” However, the fact that these practices were apparently taking place in a Binance-controlled Discord server and Telegram group suggests that they were not entirely unknown to the company.

This report highlights the challenges facing crypto companies operating in countries with restrictive regulations. It also underscores the importance of KYC controls and the need for companies to ensure that their employees and volunteers are adhering to local laws and regulations.

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Annie

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