Some Binance employees and volunteers are advising users in China and other countries on evading KYC-checks. CNBC reports this, citing Chinese-language chats controlled by the trading platform.
According to the media, the so-called “angels” within the groups share tips on forging bank documents, falsifying addresses, and concealing the country of origin to bypass controls and obtain a Binance debit card.
A Binance spokesperson told the publication that “Binance employees are strictly forbidden from offering or assisting users in circumventing their local laws and regulatory policies.”
“Those who violate these rules will be immediately fired or subjected to an investigation,” they added.
Binance representatives in a statement to Cointelegraph said that an internal investigation has begun. It will involve employees who “may have violated the company’s policy.”
The exchange has also implemented “advanced detection tools” designed to identify users from jurisdictions under restrictions.
China has banned regulated institutions from participating in digital asset transactions since 2017, and in 2021 classified cryptocurrency operations as illegal financial activity. Despite this, users try to circumvent the restrictions by various means.
Earlier in March 2023, representatives of the US Senate Banking Committee sent Binance a letter requesting detailed information about KYC/AML policy and anti-money-laundering procedures. They accused the platform of links to criminals, calling it a “hotbed of illicit financial activity.”
Later, Binance CEO Changpeng Zhao denied accusations of money laundering funds obtained illicitly.
The response provided by the exchange to the senators, while describing the company’s policy on KYC/AML compliance, almost did not address financial matters.