Binance grants itself a right of inspection over the future use of your bitcoins – Bitcoin – Bitcoin 2020

Binance want to know what you do with your BTC
  • Binance user had to fight several days with the Binance crypto platform to recover his Bitcoins (BTC)
  • His transactions were frozen on the platform and customer service threatened to close his account
  • Reason: the “risk” that the user sends his bitcoins to a mixing service, or uses it to play at an online casino
  • It is only having “promised” to do nothing that the client has seen his funds released
  • In unconvincing explanations, Binance and CZ indicated that they were forced to do so by KYC / AML regulations

When Binance behaves like the last of Crédit Agricole

You may remember, a few months ago a client of the Agricultural credit reported a letter from his local bank which, in a most paternalistic tone, explained to him that he refused a transfer to a crypto exchange (Kraken in this case, entangled moreover at this very moment in a most sprawling business).

Beyond the annoyance, the underlying message was brutal : you don’t really own your money, and even less free to dispose of it as you please.

But let’s be reassured, Bitcoin, the blockchain promise to fix all of this, right?

It is possible, but it will then be without counting on the help of exchanges which are becoming more and more simple new banking intermediaries with crypto sauce.

And among these exchanges, the most powerful of them which has just quietly infantilized one of its users in “Total Recall”: thank you for agreeing not to use your bitcoins to do shady things, neither now… nor later !

Big CZ is watching you

See his frozen assets and his reported account is always an unpleasant experience, especially in financial matters. And it becomes frankly nightmarish when the customer service explains to you that everything is normal, and that you are fair suspected of wanting to do unclear stuff with your funds. Smile, you are not in North Korea, but on the most important crypto exchange on the market: Binance.

This situation, the user “Catxolotl”(Her Twitter nickname) had the pleasure of living it in live the last days.

In summary, Catxolotl is trying to withdraw BTC and is faced with a most disturbing error message: his account has been limited because he has drawn the attention of the Binance department in charge of “Risk Management”.



Our unfortunate user is therefore going to knock on the door of customer support. There followed a surreal exchange: what triggered the alert was that Catxolotl sent – finally tried to send – BTC to a service of mixing, in this case the wallet Wasabi (whose presentation you will find here). Horror, woe: a mixing service to guarantee the anonymity of transactions, what a funny idea !

OKLM, Binance customer service therefore finds it normal to ask our friend WHY he intends to use Wasabi’s services, eh? and also by the way, what he does for a job, and how much he earns per year, for that matter.

Privacy is the new crime

In the greatest calm, managing to insult neither his interlocutor, nor CZ, nor the whole ecosystem of crypto exchanges from Malta to Singapore, Catxolotl will take this opportunity to recall 2-3 fundamentals:

  • It uses the services of Wasabi Precisely to avoid this type of inquisition on what he does, and doesn’t do with his funds,
  • on the same basis (this is the case to say) according to which we close the door of the toilet with keys: the right to privacy and privacy,
  • that considering the recent Binance hack (of crypto funds, and private documents), it is hot to communicate more than the essential necessary for a very unreliable company

However, subject to pressure (customer service threatened to close the account within 72 hours), the hero of this sad farce will end up communicating the requested information and committing, I quote “Not to send – directly or indirectly – BTC to mixing services, P2P or online Casino ”.

You read correctly. Know until which stage the “indirectly”Applies, you will doubtless fall within the strict and unilateral appreciation of the exchange.

The story ends relatively well for Catxolotl who will eventually see his account unlocked, recover his BTC, not without probably keeping the impression of having left a little of his dignity.

It obviously didn’t take long for the ultra-communicative boss of Binance CZ to split an article on the company blog to get the facts, and try to justify the unjustifiable.

There is no moral to this story. Just a lesson: the crypto economy is going to change a lot. But what it will not change is the capacity of a financial intermediary to have a right of life and death over the management of your assets, their security but also over the way in which you will be entitled to use them, or not.

Binance grants itself a right of inspection over the future use of your bitcoins – Bitcoin – Bitcoin 2020
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