A recent article appeared alleging that Binance employees and volunteers they were helping Chinese users how to bypass Know Your Customer (KYC) and other security protocols.
However, speaking to Cointelegraph, a Binance spokesperson clarified that employees are "explicitly prohibited" from helping users circumvent any law or policy. The spokesperson also said that the company is taking action following the recent allegations.
"We have launched an investigation into employees who may have violated our internal policies, including improperly requesting or making recommendations that are not allowed or in line with our standards."
They went on to say that Binance has implemented โadvanced detection toolsโ that allow the exchange to crack down on users in restricted jurisdictions, along with active blockchain VPNs from such areas.
According to the exchange, it is "extraordinarily rare" that workarounds are possible. Binance claims to have โmultiple AI-driven and manual processesโ that help prevent users from circumventing any critical security procedures.
โIn addition, users who have used some kind of workaround to avoid local law are immediately restricted.โ
Changpeng Zhao, the co-founder of Binance, has not commented on the situation at the time of writing, despite his regular comments on social media. Earlier, Zhao took to Twitter to deal with rumors that had spread through the Chinese messaging platform WeChat.
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Prior to this incident, Binance had announced in February that would delist non-fungible tokens (NFTs) with low trade volume that were listed before the implementation of their new KYC rules.
In October 2022, the exchange was hit with allegations that he โdiverted scrutinyโ from regulators in the United States and the United Kingdom for incidents in its operating history.
Previously, Binance has been open about its employee policies. In January, the exchange confirmed that its employees must adhere to a 90-day period before trading any digital asset to prohibit insider trading.
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