I didn't know that, but after a quick search it seems that Binance did indeed freeze accounts a few months ago of users who had used CoinJoin transactions. Look at this twitter thread for example:
https://twitter.com/bittlecat/status/1207894540322926593. His account and coins were only unfrozen after he "promised" to stop trying to protect his privacy.
Seriously, this is insane. User takes basic steps to afford himself the smallest bit of privacy after already completing full KYC at an exchange, and the exchange literally confiscates his money until he promises to let them stick their noses in to everything he does, every transaction he makes, everywhere he sends
his own money.
Why do people use Binance again? Is this level of surveillance worth it to trade shitcoins?
This is something worth clarifying. Binance Singapore is a fiat exchange that only has a handful of listed markets. When this happened,
CZ strongly implied that something like this would only occur on Binance's "regulated" exchanges,
and not on Binance.com.
At the time,
a new Singapore law subjecting cryptocurrency exchanges to existing financial regulations was about to come into effect. Binance was either applying or about to apply for a license from the Monetary Authority of Singapore. This likely had an impact. The MAS's language about the need for exchanges to implement "activity-based" and "risk-focused" mitigations strongly echoes the FATF's AML model.
I'm not happy about it, but it should come as no surprise when regulated fiat exchanges avoid doing business with "risky" customers. That's their prerogative.
We've seen what can happen when exchanges flout money laundering regulations.