Binance, one of the world’s largest cryptocurrency exchanges, has launched an internal investigation following allegations that its employees and volunteers assisted users in circumventing Know Your Customer (KYC) and other security protocols.
According to a recent article, Binance staff and volunteers allegedly helped Chinese users bypass KYC procedures. However, a Binance spokesperson has stated that such behavior is prohibited, and the exchange is conducting an investigation into any potential breaches of internal policies.
Binance claims to have implemented advanced detection tools to prevent users from bypassing critical security procedures, and to be cracking down on users in restricted jurisdictions and VPN use from these areas. The exchange also stated that workarounds are extremely rare due to multiple manual and AI-driven processes.
Binance previously announced in February that it would delist low-trade volume NFTs that were listed before the implementation of its new KYC rules. The exchange’s employees are required to adhere to a 90-day period before trading any digital assets to prevent insider trading. However, in October 2022, Binance faced allegations of regulatory avoidance in the US and UK.