Binance Hasn’t Upgraded Customer KYC Checks: Report

Binance hasn’t upgraded customer KYC checks and didn’t cooperate with authorities despite its promises to enhance its regulatory compliance so let’s read more today in our latest Binance news.

According to a Reuters investigation, Binance hasn’t upgraded customer KYC checks and the report was based on interviews with dozens of former employees of Binance, busienss partners, and advisers as well as the review of the hundreds of documents. Binance refused to answer regulators’ question about its operations and even turned down the German police’s request to track down fraudsters and scammers and ignored the compliance advisors’ recommendations to avoid customers in countries with money laundering risks while claiming to welcome regulation.

Binance CEO Changpeng Zhao even ignored senior staff when they voiced concerns about the weak KYC requirements. The crypto exchange recieved multiple warnings about its operations from regulators around the world about its activities like Japan and Singapore all while avoiding setting up global headquarters.

According to Reuters, in 2020, Binance acted against its own money laundering risk alerts for seven countries. The ratings for Russia and Ukraine were downgraded manually from extreme to high so that the exchange can continue offering services there. Apart from the crackdown in China in 2017, the exchange twice fled markets after its relationship with regulators became unfriendly. Once this occurred after Japan called Binance out for offering these services without being licensed and other times when it realized being licensed in Malta to set up the global headquarters involved a rubber stamp as per Reuters. Binance refuted the claims.

As recently reported, The largest crypto exchange in the world, completed Binance’s 18^th BNB burn to mark the first quarterly auto burn which removed about $800 million worth of tokens from the network. According to a blog post from Binance, the burn removed about $1.6 million tokens. 6296 of those tokens were burned thorugh the Binance Pioneer Burn program that counts BNB mistakenly sent to dead wallets. As the first auto-burn, the burn was not manually conducted through the Binance exchange revenue generation but BNB was collected for removal through Binance Smart Chain’s auto-burn mechanism. The auto-burn mechanism determines how much BNB to burn according to the formula based on the BNB price and the number of blocks produced in the same quarter. It is set to replace manual burns in the future.