Binance staffers and “Angels,” trained volunteers, allegedly assist clients in China and other regions in bypassing the firm’s Know Your Customer (KYC) regulations, based on messages exchanged on a Binance-run Discord channel and Telegram chat, as disclosed by CNBC’s investigation.
Who are Binance China ‘Angels?’
According to CNBC, the Angels allegedly provided instructional videos and written materials to mainland individuals on how to fabricate their residency status in order to acquire Binance’s debit card, essentially converting their Binance cryptocurrency into a regular checking account.
The messages examined by the publication reportedly contained methods for circumventing Binance’s verification, residency, and know-your-customer (KYC) protocols.
The tactics shared by staff and volunteers purportedly included creating counterfeit bank documents and providing incorrect addresses. Some strategies involved manipulating Binance’s systems with ease.
China’s crypto ban
Beijing has thrown a wrench into the world of digital currency with its recent decision to ban all cryptocurrency transactions within China’s borders. The move, which was announced by the People’s Bank of China, has left crypto enthusiasts in a state of shock and uncertainty.
China’s crypto ban is a major blow to the cryptocurrency industry, as the country has been one of the largest markets for digital currencies in the world. The ban covers all forms of cryptocurrency transactions, including trading, mining, and storage.
The Chinese government has cited concerns over financial stability, illegal activities, and environmental damage as the reasons behind the ban. Cryptocurrency mining, in particular, has been blamed for its high energy consumption and carbon footprint.