Binance, the world’s largest cryptocurrency exchange, is in talks with the US Department of Justice to potentially ease a key oversight requirement in its $4.3 billion money laundering settlement. This move is part of a broader trend by the DOJ to reconsider the use of independent monitors for corporations.
The discussions center on the requirement for Binance to have an outside compliance monitor for three years. This was a key part of the massive settlement reached in 2023, where Binance admitted to failing to prevent money laundering on its platform. The company’s founder, Changpeng Zhao, also served a four-month prison sentence as part of the deal.
While the DOJ has not made a final decision, Binance would likely need to implement enhanced compliance reporting to get the monitorship lifted. This reflects a shift in the DOJ’s approach, as several other companies have had their independent oversight requirements removed under the Biden administration. The DOJ has expressed concerns that these monitors can be expensive and disruptive to business operations.
Binance has been actively trying to win over US authorities. Zhao has even sought a pardon from President Donald Trump. The crypto industry has been a significant donor to Trump’s campaign and has seen a more favorable regulatory environment under his administration.
However, the DOJ is not eliminating all monitorships. For example, a US subsidiary of Toronto-Dominion Bank will keep its monitor after pleading guilty to money laundering conspiracy. This indicates that the DOJ is taking a case-by-case approach.
Binance is also still under the oversight of a monitor from the Treasury Department’s Financial Crimes Enforcement Network (FinCEN), which was part of a separate settlement. It was reported in April that Binance had also tried to get this monitor removed.