Binance Subject to Stringent Monitoring After Plea Agreement, Says Former SEC Official
A former high-ranking official of the U.S. Securities and Exchange Commission (SEC) has stated that Binance will now be closely monitored following its plea agreement with the US government. Last month, Binance agreed to pay over $4 billion in fines and admit to violating US laws related to money laundering, sanctions violations, and operating an unregistered money-transmitting business.
As part of the agreement, Binance also accepted the appointment of an independent monitor to assess and report on its compliance with the terms of the plea. According to filings from the U.S. Department of Justice (DOJ), the monitor’s mandate is extensive and comprehensive, requiring a 13-page document to outline Binance’s obligations.
The monitor will have access to Binance’s companies, documents, resources, information, records, facilities, and employees as reasonably requested. In some cases, the monitor may choose not to inform Binance about its findings and must report potential misconduct directly to the government instead. This level of oversight is unprecedented for a global financial firm.
Unprecedented Government Oversight
The former SEC official highlights that the US government now has robust and vigorous oversight over Binance through this monitorship. The monitorship imposed by the DOJ, along with those enforced by the U.S. Financial Crimes Enforcement Network (FinCEN) and other compliance commitments made by Binance, represents an unparalleled level of supervision for a global financial company.
Hot Take: Increased Accountability for Binance
Binance’s plea agreement with the US government has resulted in a significant increase in accountability for the crypto exchange. With an independent monitor overseeing its operations and compliance with plea terms, Binance will face stringent scrutiny from both regulatory authorities and the monitor itself. This level of oversight is unprecedented in the crypto industry, demonstrating the US government’s determination to enforce regulations and combat illegal activities in the sector. As a result, Binance will need to prioritize transparency, cooperation, and adherence to regulatory requirements to rebuild trust with regulators and maintain its position as a leading global exchange.
By
By
By
By
