Binance nears agreement to end US monitorship

Binance, the world's largest crypto exchange, is reportedly close to finalising an agreement with the US Department of Justice (DOJ) that would end its court-appointed compliance monitorship.

This supervision was part of a 2023 settlement where Binance agreed to pay US $4.3 billion in fines after the company and its founder Changpeng "CZ" Zhao pleaded guilty to violating anti-money laundering laws and sanctions.

As part of that deal, Binance accepted a three-year oversight arrangement led by Forensic Risk Alliance. The monitor was tasked with assessing and monitoring Binance's compliance with the plea deal and evaluating the "effectiveness of the Company’s Compliance Programs as they relate to its current and ongoing compliance with laws prohibiting money laundering, laws requiring anti-money laundering programs, and laws prohibiting violations of US sanctions".

According to Bloomberg, discussions with the DOJ suggest the department is considering whether to conclude the monitorship early though no final decision has been announced.

This development comes amid broader shifts in US crypto policy. The Trump administration has expressed support for clearer regulatory guidance and reduced external oversight in certain cases. The GENIUS Act, signed earlier this year, introduced national standards for stablecoins, while both the SEC and CFTC are working on regulatory pathways to crypto regulation and have pivoted to an enforcement strategy focused on fraudulent conduct. These moves reflect President Donald Trump's goal of positioning the US as a more attractive destination for crypto businesses.

In recent years, Binance has reported has a range of initiatives to step up its AML/CTF compliance with key hires and closer collaboration with regulators. The firm continues to face close scrutiny, including recent news that AUSTRAC will require the firm to appoint an external auditor to conduct a review of AML/CTF compliance within its Australian operations.

If the DOJ agrees to end the monitorship, it will relieve Binance of the burden of having an external auditor within the business to monitor its AML compliance oversight and mark a significant milestone in its regulatory compliance efforts. The news follows an earlier agreement with the SEC to cease enforcement action against the firm under US securities laws.

First published on BitsofBlocks.io and reproduced with permission.