Previously sealed details emerged surrounding extensive monitorship obligations the U.S. Department of Justice will have over Binance as part of the criminal settlement deal reached last month. Compliance terms grant federal agencies far-reaching access into documents, records, and resources pertaining to Binance operations and activities.
According to analysis from former SEC official John Reed Stark, the exhaustive compliance wish list will likely subject Binance and its customers to an invasive round-the-clock “financial colonoscopy” with multiple agencies like the DOJ, FinCEN, and others closely tracking the exchange. Regulators will even have access to former employee records.
The DOJ is also leveraging the evidence from its plea deal with Binance and former CEO CZ in the separate civil case brought by the SEC. By incorporating settlement admissions to challenge Binance’s motion to dismiss, the SEC can undermine the exchange’s claims about limited scope of U.S. presence and activity.
With permission to broadly dig into functional details alongside multi-year monitorship, U.S. authorities ensure maximum visibility over Binance to guarantee adherence to the landmark agreement struck to avoid criminal charges – no matter how invasively.
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