Discussion ongoing for Binance to eliminate Department of Justice supervision from $4.3 billion agreement
In a significant development for the crypto industry, the world's largest cryptocurrency exchange, Binance, is in discussions with the U.S. Department of Justice (DOJ) to potentially remove the independent compliance monitor required under its $4.3 billion settlement for anti-money laundering violations.
The discussions reflect a broader shift under the Trump administration away from corporate monitors, as the DOJ has already terminated monitors at three companies that received them during the Biden administration. Among the companies with terminated monitors are units of Glencore, NatWest Group, and navy shipbuilder Austal USA.
The potential deal would replace the independent monitor with enhanced compliance reporting requirements. This development comes as the crypto business benefits from Trump's pro-digital asset policies, with the administration issuing executive orders addressing industry priorities like banking access for the crypto industry.
Binance has developed closer ties to the Trump administration, including playing a role in developing the stablecoin for World Liberty Financial, one of Trump's family ventures. The final decision about the removal of the independent compliance monitor at Binance will be made by the DOJ, which is currently negotiating with Binance and has not yet reached a definitive conclusion.
The monitoring requirement was part of a 2023 settlement that resolved allegations Binance failed to prevent money laundering on its platform. Changpeng Zhao, founder of Binance, served a four-month sentence as part of the DOJ settlement. Zhao has indicated he would seek a presidential pardon from Trump.
Matthew Galeotti, head of the DOJ's Criminal Division, has stated that while monitors can reduce repeat offenses, they can also impose substantial expense and interfere with lawful business operations. The Treasury Department's FinCEN monitor remains in place for Binance.
The SEC has dropped or paused multiple investigations against crypto companies, including cases involving Binance. The discussions are based on a report by Bloomberg. The DOJ has not made a final decision on the matter.
The administration has appointed crypto-friendly agency heads, further signalling a supportive stance towards the crypto news industry. While the future of Binance's monitoring requirements remains uncertain, the ongoing negotiations indicate a potential shift in the regulatory landscape for the crypto business under the Trump administration.
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