Binance, the world’s largest cryptocurrency exchange, is in discussions with the U.S. Department of Justice (DOJ) to potentially end its independent compliance monitorship years ahead of schedule, according to a Bloomberg report citing unnamed sources.
Sabrina Willmer
The monitorship was imposed in late 2023 after Binance admitted to money-laundering and sanctions violations and agreed to a $4.3 billion settlement with U.S. regulators. As part of the plea deal, the DOJ appointed Forensic Risk Alliance to oversee the exchange’s compliance program for three years, while the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) assigned its own monitor for five years—a first-of-its-kind step for the agency.
Forensic Risk Alliance formally began its oversight role in May 2024. It remains unclear whether Binance is also seeking to adjust the terms of FinCEN’s monitorship.
Shifting Regulatory Priorities
The talks come as Washington signals a changing stance toward digital assets under President Donald Trump’s second term. In April, the DOJ issued guidance clarifying that it does not see itself as a digital asset regulator, saying enforcement will focus on clear federal crimes such as terrorism financing and cyberattacks rather than imposing regulatory frameworks through criminal charges.
Legal experts suggested at the time that the shift could lead to the closure of certain investigations or the dismissal of existing charges against crypto firms. Still, money-laundering and sanctions breaches remain serious federal crimes handled by agencies like the FBI, DEA, and the Treasury’s Office of Foreign Assets Control, often in coordination with the DOJ.
Binance’s Compliance Overhaul
Since the plea deal, Binance has sought to rebuild trust with regulators and users. Richard Teng, who took over as CEO following Changpeng Zhao’s resignation, has expanded the company’s compliance resources, reportedly investing around $200 million in 2024 alone.
The exchange’s guilty plea acknowledged that it prioritized growth and profits over compliance, allowing illicit funds to flow through its platform. Independent monitors were appointed to ensure Binance implemented strong know-your-customer (KYC) and anti-money-laundering (AML) systems and adhered to U.S. law.
Analysts noted that while the monitorship placed significant costs and resource burdens on Binance, it also offered the exchange a pathway to re-enter markets from which it had previously been excluded.
Outlook
If Binance secures approval to end its DOJ monitorship early, it would mark a significant milestone in the company’s effort to move past its legal troubles. However, any final decision will depend on regulators’ confidence that the exchange can maintain compliance without outside oversight.
