Binance Starts Internal Probe On KYC Bypass Rumours: All You Need To Know

Binance has implemented advanced detection tools that will help in tracking and preventing users from the banned regions.

Binance has assured about taking suitable actions after the allegations of KYC bypassing.

Source : Getty

Binance, the largest crypto exchange in the world in terms of trading volume, has launched an internal probe to look into the know your customer (KYC) bypassing rumours, reported Cointelegraph. Earlier, an investigation by CBNC revealed that employees at the crypto firm were allegedly involved in helping Chinese customers bypass the KYC and pertaining security safety measures. A company spokesperson reportedly confirmed that anyone associated with them is “explicitly forbidden” from assisting any user in dodging the company policies and laws.

Binance has also assured that the organisation is taking suitable actions after the allegations surfaced in the public domain recently.

“We have launched an investigation into employees who may have violated our internal policies including wrongly soliciting or making recommendations that are not allowed or in line with our standards,” said the spokesperson.

Binance said the firm has launched and implemented “advanced detection tools” that will help in tracking and preventing users from the banned regions. The detection tools will also block VPNs from any such restricted areas, reported CoinTelegarph.

The crypto exchange has described the move as an extraordinarily rare phenomenon when it comes to tracking such incidents. Binance has said that the firm has “multiple manual and AI-driven processes” to ensure the prevention of security protocols bypasses by users.

“Furthermore, users who are found to have used any sort of workaround to avoid local law are restricted immediately,” said the company, as quoted by CoinTelegraph.

However, Binance CEO Changpeng Zhao has said anything about the ongoing controversy so far.

Earlier in February, the firm had said it will go for delisting of the low-trade-volume non-fungible tokens that were listed before the implementation of its new KYC rules and regulations, reported CoinTelegraph.

Meanwhile, Binance also went through a two-hour spot market outage on Friday. The firm was forced to suspend its trading due to a computer bug pertaining to the stop loss feature. The official Twitter handle of Binance said, “All spot trading is currently temporarily suspended as we work to resolve this as soon as possible.”

We are aware of an issue impacting spot trading on Binance.

All spot trading is currently temporarily suspended as we work to resolve this as soon as possible.

New updates will be shared here.

— Binance (@binance) March 24, 2023

Zhao described the incident as “unlucky.”

A trailing stop is a kind of market system that decreases a position after the price of assets hits some number of price triggers. It is a very common occurrence for crypto exchanges across the world to suffer such outages caused by trading volatility.

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