Binance Employees Giving a Hand to Help Chinese Customers Dodge KYC

Sometimes our Chinese friends need to bend the rules just a little bit. This time, Binance China customers can thank their generous employees for helping them move around pesky KYC verification rules.

Why the Sudden Lax Enforcement?

Since China’s central bank banned cryptocurrency trading and ICOs in 2017, Binance has been subject to strict KYC verification standards, identifying customers and their transactions in the domestic market. Overall, KYC is the requirement that financial firms understand and verify the identity of their customers.

However, Binance employees reportedly took it upon themselves to offer Chinese customers a way around this KYC procedure. This act of embracing flexibility and lessening regulation is likely due to the conflict between Binance and China-based payment processing companies, who have been refusing to transfer funds for the past 2 years.

How Are They Doing It?

With the KYC obstacle out of the way, Binance allegedly decides to grant Chinese customers a new KYC-exempt account. These accounts come with certain privileges and can be used to trade and withdraw certain amounts of money.

Being KYC-exempt, these accounts do not have a name associated with them; hence traders cannot be traced and tracked by authorities. Sources have revealed that Binance employees have been supplying customers with a mobile phone number to complete the setup.

Humor at the Unconventional Rules Loophole

As news of this unusual strategy spread, many observers have taken to social media to comment on the loophole:

  • “Binance is like Chinese Aladdin. Wave your magic wand and you are exempt from the KYC rule.”
  • “Dodging KYC? That’s so Chinese.”
  • “Guess they will never get caught, they are too good at this.”

At the end of the day, one thing is certain – the unorthodox approach taken by Binance employees is remarkable to say the least. After all, it’s not every day that we hear of people helping – or in this case, taking it upon themselves – to bypass the law, especially for financial activities.