According to reports by CNBC, some employees and volunteers at Binance, the largest crypto exchange, are providing advice to users from China on how to bypass the “know your customer” (KYC) procedure and remain anonymous.
These individuals, known as “angels,” shared methods such as forging bank documents and providing false addresses to bypass KYC on Binance.
Some of the techniques shared by staff, volunteers, and customers involve simple manipulation of the Binance system.
Video tutorials and documents were also exchanged among users to show residents of Mainland China how to fake their country of residence to obtain a Binance debit card.
It is important to note that cryptocurrency exchanges have been banned in China since 2017, and cryptocurrencies were banned in 2021.
This makes accessing many crypto products illegal under Chinese law. However, the Ministry of Science and Technology of the People’s Republic of China recently approved the establishment of a blockchain technology center in the country’s capital, which aims to study blockchain practices in the interest of industry and the economy as a whole.
While China has become more supportive of blockchain development in recent years, the government has increased its repression against cryptocurrency holders, which it sees as a threat to financial stability.
CNBC was able to view hundreds of Discord and Telegram messages from Binance employees and volunteers dating from 2021 to 2023, with both groups having over 220,000 registered users.