Binance CEO Hits Back at 'Weak' KYC Claims

Binance has the most sophisticated know-your-customer system in the industry, Changpeng Zhao said.

AccessTimeIconAug 9, 2022 at 11:36 a.m. UTC
Updated May 11, 2023 at 4:16 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

SEOUL, South Korea — Binance CEO Changpeng Zhao countered claims the exchange has a weak know-your-customer (KYC) and anti-money laundering (AML) regime.

  • Zhao said the exchange – the world’s largest by volume – has the industry’s most advanced system. He spoke during a session at Korea Blockchain Week here.
  • In early July, Reuters reported Binance only made “weak” attempts to prevent money laundering, and that Zhao regularly ignored advice from his compliance team.
  • Zhao, speaking from an undisclosed location, countered that report, stressing the exchange spent a significant amount of time and resources perfecting its KYC/AML system to stay ahead of criminals.
  • “We spend a lot of time fighting hackers without using sanction lists,” he said. “Binance has the most licenses in the world. ... [L]icenses are for building trust," he added.
  • Binance’s investigation team is led by Tigran Gambaryan and Matthew Price, former investigators at the U.S. Internal Revenue Service’s cybercrime unit. The two had a leading role in dismantling darknet markets AlphaBay and Hydra.
  • Zhao also pointed to the island nation of Palau’s adoption of Binance’s KYC technology in its digital ID effort. The digital ID system is powered by the BNB chain, which he said proves the maturity and stability of the product.
  • Zhao appeared at Korea Blockchain Week virtually and was interviewed by Leon Foong, the exchange's head of Asia.
  • SEC Asking for Ether ETF Filings Update Is 'Somewhat Surprising': Legal Expert
    00:38
    SEC Asking for Ether ETF Filings Update Is 'Somewhat Surprising': Legal Expert
  • MOG Rallies on Anticipation of Spot Ether ETF Approval
    00:56
    MOG Rallies on Anticipation of Spot Ether ETF Approval
  • Ether Jumps on Spot ETF Hopes; Hex Trust Issues Stablecoin on Flare
    01:59
    Ether Jumps on Spot ETF Hopes; Hex Trust Issues Stablecoin on Flare
  • 'Sky Is the Limit' for Bitcoin: Expert
    00:53
    'Sky Is the Limit' for Bitcoin: Expert
  • Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.