Binance, the world’s largest cryptocurrency exchange, is facing accusations of assisting users in China and other countries to bypass its Know Your Customer (KYC) controls. According to a recent report by CNBC, some Binance employees and trained “volunteers” are allegedly helping users evade the platform’s security protocols, leading to concerns about the security of the platform and its compliance with regulatory requirements.

Background: Binance’s Huge User Base in China

Despite a 2017 ban on cryptocurrency trading in China, Binance reportedly has a large user base in the country, with some estimates suggesting that up to 50% of its users come from China. Many Chinese users access the platform using virtual private networks (VPNs) to bypass government restrictions on cryptocurrency trading.

The Allegations: “Angels” Helping Users Evade KYC Controls

According to Chinese-language messages from a Binance-controlled Discord server and Telegram group, some Binance employees and trained “volunteers” who call themselves “Angels” are allegedly helping users evade the platform’s KYC controls. These “Angels” provide instructions on how to use VPNs to access the platform and offer tips on how to create multiple accounts to bypass the security protocols.

Binance has not yet responded to the allegations. However, this incident highlights the challenges faced by the cryptocurrency industry as it seeks to balance innovation and security with regulatory compliance. As the cryptocurrency industry continues to evolve, it will be crucial for exchanges to maintain the highest standards of security and regulatory compliance to ensure a safe and transparent ecosystem for users.