A former senior US Securities and Exchange Commission (SEC) official says Binance is now subject to strict scrutiny following the plea deal with the US government.
Last month, the world’s largest cryptocurrency exchange agreed to pay more than $4 billion in fines and admitted that it had violated U.S. laws by engaging in money laundering, violating sanctions and operating an unregistered money transmission company.
Binance also agreed to appoint an independent monitor to review and report on compliance with the plea terms.
Citing recently released documents from the U.S. Department of Justice (DOJ), former head of the SEC’s Office of Internet Enforcement John Reed Stark say The monitor’s mandate is so broad and inclusive that a 13-page document is required to provide an overview of Binance’s obligations.
“Binance must facilitate the Monitor’s access to the companies, documents and resources and provide the Monitor with access to all information, documents, records, facilities and employees as reasonably requested by the Monitor. Binance must also do its utmost to provide the monitor with access to the companies, former employees, agents, intermediaries, consultants, representatives, distributors, licenses, contractors, suppliers and joint venture partners.
The monitor may even choose NOT to notify Binance of its findings under certain circumstances. In some situations, the regulator must even report potential misconduct directly to the government, and not to Binance.”
Stark says the government now has extensive, robust and robust oversight of Binance, with oversight never before seen among global financial companies.
“The breadth and scope of the DOJ monitoring board, along with the monitoring orders imposed by the US Financial Crimes Enforcement Network (FinCEN) and associated Binance compliance obligations, cannot be underestimated – in fact, this type of DOJ/FinCEN oversight of a global financial company simply unprecedented.”
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