Binance complaint: Restricting P2P functions and rejecting complains with no common sense!

Complaint from SmallGuy reported on 12 September 2023 about Binance

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My complaint:

Hello, we are murchet trading in P2P with Binance. One day a client come to us wanting to buy large amount of crypto. He was from UK, so the restriction of a single order was 5k GBP, meaning that he had to make 3-4 orders to get the amount he desired. We asked the client because the amout is big if we should do it outside of the orders at once. He insisted everything being done through Binance P2P system for security – we thought this is fine.

Few days later our account was suspended due to violation of trading rules. Basically they were saying that with this 4 trades that we have done with a single user in a single day we have boosted our stats dramatically. We were asked tons of documents which have no relation to the case. All was provided and we started arguing about this restriction:
– First of all, the counterparty had no issues on the case and never got suspended, which makes no sense
– Second, we were doing roughtly 80-100 orders a months, and the 4 orders in a single day do not actually help at all – we were far from 300 orders requred for some sort of special merchent account, so the so called boost was actualy no argument.
– third, we had no previous violations of any sort. Also the violation itself damages no one (there is no fraud, no bad intention or anything! Actually the only reason we did it was because the customer insisted it is safer!)
– The trading rules do not state how many trades are considered a boost! So why was this picked, there is no explanation!

So after all the explanation we at least managed to unlock the account but we were handled suspnsion to create P2P adds for 3 months. After this period passes we were to discuss again based on our activity if we should continue having this restriction. It was asked from us to make 30-40 trades as takers (to take adds of other people). At the time it seemed not fair, but we didnt want to push it further,

The problem is that we are regulated entity (and Binance are aware of this). As per regulations we cannot do 3rd party and also we are required to make KYC verification. When we made the adds this was not a problem as our buyers can see this and accepted the terms. But when you take adds you cannot force anyone to do KYC verification. As a matter of fact 90% of the adds were for 3rd party transfers (which bring high risk of Money launderting and other fradulent actuons and Binance are actually allowing this!). They only adds that were okay with and the counterparty was fine with KYC verification were arctually way way below market…so there was absolutly no use of them.

3 months passed and we contacted Binance again. The above was explained to them and the answer was straight forward – with no activity, we extend this with 3 more months and this time try to make 30-40 adds! WHAT? We explained the above several times, ended up chatting with someone from complain team who couldnt care less – he was just reposting what he had write and continue stating that its our decision what we do and weather we take adds or not. So I send him screenshots of 3rd party posting adds (which by the way Binance says its not acceptable but does nothing on it!) and they guy says, just move to the next add, we dont care.

So there are few options for us – we are either making 30-40 trades on loss, violate our AML obligation and ignore 3rd party and KYC requirements or stay still and do nothing. All this because some guy wanted to use the P2P function of binance for several trades because its safer. At the end we are punished because a buyer wanted to use Binance because its safe….if we went out of binance to complete the deal, there would never be a problem! 🙂

I have a frined with the same business, who told me that he had the same issue, but because he did not belive in Binance, he just opened new company, boarded it with Binance and continued trading in less then 3 months making good profits….and I am here fighting with them, beliving in them over 6 months now just to ifnd out that they dont care.

We are considering leaving Binance after few months fighting with them. Our clients were happy and constantly we receive emails asking if we are comming back to Binance. Nope, we are not! We were forced away by their briliant support and complaint teams, who do not belive in common sense and definatelly are not there to help you!

Suggested solution:

- they should have better communication teams who have common sense and dont just follow policies blindly - likely those poicies were not touched in years, obviously there are gaps, which no one is allowed to compensate about
- review of their policies! - very important! they just may not work! there should be way more specific
- formal camplain section, but not some chat with someone who does not care - we want to be able to submit email or fill a form and express our concerns. This should be reviewed by a team which can return proper reasoning to all statements and appeals there, but not just saying in chats this are our policies - this is just very shit argument!

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