While Binance, the world’s largest cryptocurrency exchange in the industry has developed to be as safe and transparent as possible after the FTX saga, some employees have been reported to have done some elicit actions to dent the company’s reputation.
According to investigated as reported by CNBC, some employees at the exchange have been helping Chinese customers to pass the Know-Your-Customer (KYC) verification process despite regional restrictions on the crypto market.
Employees Allegedly Help Bypass Verification Process
A CNBC report claims that Binance’s billion-dollar security protocol is being manipulated by some users on China with the help of some workers in exchange. The action reportedly took place in Binance’s official Chinese language chat room which contains more than 220,000 users.
The report highlighted that techniques that could be used to circumvent the exchange’s residency and KYC verification systems were shared in group chats. These shared techniques and conversations come from accounts identified as Binance Binance trained employees or volunteers known as “Angels.”
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Some of the techniques shown include falsifying bank documents or giving fake addresses, while others contain basic manipulation tips of crypto exchange systems.
In addition, employees, volunteers, and customers have also reportedly shared video guides and documents on how to cheat their country of residence to obtain a Binance debit card.
Binance’s Response To Alleged Laws
In response to the action, reported by CNBC, a Binance spokesperson noted, “We have taken action against employees who may have violated our internal policies, including wrongly soliciting or giving recommendations that are not permitted or in line with our standards.”
The spokesperson added that “Binance employees are strictly prohibited from advising or supporting users in violation of local laws and regulatory policies, and will be immediately fired or audited if found to be in violation of these policies.”
Binance CEO Changepeng Zhao “CZ” who is usually the most active on Twitter to address almost any situation regarding his exchange has yet to comment on CNBC’s investigation.
The price of BNB is moving sideways on the 4-hour chart. Source: BNB/USDT on TradingView.comNotably, this news comes amid China’s ban on cryptocurrencies starting in 2021. By banning new crypto exchanges in the country, actions such as Chinese users breaking KYC to access Binance could have consequences.
Meanwhile, the region is still pushing for central bank digital yuan (CBDC) adoption. last month, China brings more digital yuan (e-CNY) exposure. through various commercial and government-sponsored activities, as well as digital yuan donations made by the government to increase the adoption of the currency.
The original token of the BNB exchange started to enjoy a rise in the last few weeks. However, it has slowed down in the past week as the digital asset fell 2.58% in the last seven days to trade at $323 at the time of writing.
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