Binance, the largest cryptocurrency exchange in the world, has been under fire for enabling money laundering and criminal activities in the past. Despite its efforts to improve transparency after the FTX scandal, a recent investigation by CNBC has revealed that Binance insiders are allegedly helping users in China to circumvent the exchange’s security protocols.
The report suggests that Binance employees and volunteers have been providing Chinese customers with assistance in bypassing KYC controls. The Chinese-language chat rooms of Binance reportedly had over 220,000 registered users, with shared messages providing tips and techniques to bypass KYC, residency, and verification protocols. The messages were allegedly sent by accounts identified as Binance employees or trained volunteers known as “Angels.”
These allegations raise concerns about Binance’s commitment to regulatory compliance and transparency. The exchange has already faced regulatory scrutiny in several countries, including the United States, Japan, and the United Kingdom, over its compliance with anti-money laundering regulations.
Binance has responded to the allegations made in the report, stating that it takes compliance and security seriously and has a zero-tolerance policy for any misconduct by employees or volunteers. The exchange has a dedicated team that monitors and prevents any suspicious activities on its platform.
The report by CNBC is the latest in a series of accusations against Binance, including allegations of facilitating money laundering, terrorist financing, and other illegal activities. These accusations have prompted regulatory authorities in several countries to investigate Binance’s operations and compliance with anti-money laundering regulations.
In conclusion, the allegations made in the CNBC report are a cause for concern for Binance, as they raise questions about the exchange’s commitment to regulatory compliance and transparency. Binance needs to take decisive actions to address these allegations and demonstrate its commitment to operating transparently and compliantly.