Binance Requests DOJ to Remove Settlement Oversight Provision
Binance is reportedly negotiating with the United States Department of Justice (DOJ) to end an oversight measure imposed under its 2023 settlement agreement, according to sources cited by Bloomberg. If approved, the move would relieve Binance from the obligation of being monitored by an independent compliance official for a three-year period.
Background on the DOJ Settlement
The independent monitor was part of a settlement reached in 2023 after the DOJ alleged multiple compliance failures, including insufficient measures to protect against money laundering. The oversight requirement applies to Binance�s international operations and does not include its U.S. affiliate, Binance.US, which is a separate legal entity.
Potential Regulatory Implications
The ongoing discussions may be part of a broader DOJ trend of reducing or removing the use of external monitors in certain cases. Companies often describe these conditions as costly and disruptive. The report notes that at least three other firms�Glencore Plc, NatWest Group Plc, and Austal Ltd.�have recently ended similar oversight requirements.
Changing Regulatory Landscape for Crypto
This development comes amid a broader shift in U.S. regulation of digital assets. Recent moves by the Trump administration include the signing of the GENIUS stablecoin act, the passage of crypto-related measures in the House of Representatives, and increased guidance from regulatory bodies. SEC Chair Paul Atkins has pledged clearer regulations on tokenization, and the commission classified several stablecoins outside of securities rules. The CFTC has also announced new measures to support select U.S. clients under the Foreign Board of Trade program.
- The DOJ has not confirmed an official decision regarding Binance�s request.
- Binance continues to face regulatory scrutiny and works to align with evolving compliance expectations.
Further developments in the DOJ's review may set the tone for compliance requirements across major crypto exchanges operating in the U.S. and globally.
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