Binance COO Noah Perlman acknowledges that the monitoring agreement with U.S. regulators is currently presenting obstacles for the exchange, despite initially seeing it as a chance for growth and improvement.
The plea agreement between Binance and the U.S. Department of Justice, which involves having an independent compliance monitor for three years, is now hindering the exchange’s ability to expand its global services. Perlman described the U.S. as an “authorized referee” in this situation.
During his speech at the Token2049 conference, Perlman stressed the importance of establishing a positive dialogue with regulators, stating that cooperation is the key to effective regulation.
Regarding Binance’s resolution with the DOJ, Perlman mentioned that the exchange must now adhere to stricter requirements as the U.S. government is overseeing compliance as the “imposed-and-authorized referee.”
In November 2023, Binance admitted guilt and agreed to a $4.3 billion settlement for criminal money laundering charges brought by the DOJ. As part of the agreement, Binance’s CEO Changpeng Zhao also pleaded guilty and agreed to resign from his position. Furthermore, Binance committed to retaining an independent compliance monitor for three years and improving its anti-money laundering and sanctions compliance programs.
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