A new article has surfaced claiming that Binance employees and volunteers are helping Chinese users on how to bypass Know Your Customer (KYC) and other security protocols.
However, speaking to Cointelegraph, a Binance spokesperson clarified that employees are “clearly prohibited” from supporting users to circumvent laws or policies. The spokesperson also said the company is taking action following the new allegations.
“We have launched an investigation into any employee who may have violated our internal policies including improperly soliciting or providing recommendations that are not permitted or in line with our standards.”
He went on to say that Binance has implemented “sophisticated detection tools” that allow the exchange to crack down on users in restricted jurisdictions, along with active blocking VPNs from those regions.
According to the exchange it is “very rare” that workarounds work. Binance claims to have “multiple manual and AI-driven processes” that help prevent users from bypassing critical security procedures.
“Furthermore, users found to have used any workaround to avoid local laws are immediately restricted.”
Changpeng Zhao, the founder of Binance, did not comment on the situation at the time of writing, despite his regular comments on social media. Earlier, Zhao took to Twitter to address the rumors circulating through the Chinese messaging platform WeChat.
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Prior to this incident, Binance had announced in February that it would remove low trade volume nonfungible tokens (NFTs) that were registered before the implementation of the new KYC rules.
In October 2022, the exchange was accused of “deviation” 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 before trading digital assets to ban insider trading.
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