Token2049: Binance COO says US monitoring deal poses challenges

Noah Perlman, Binance‘s COO, acknowledges that complying with the regulatory agreement in the US is becoming more complex for the exchange, even though they initially saw it as a chance to enhance their operations.

The agreement between Binance and the US Department of Justice, which involves having an independent monitor overseeing their compliance for the next three years, presents difficulties for Binance in expanding its services internationally. This is because the US now holds a significant role, acting as a regulatory authority in Binance’s dealings. (Binance COO Noah Perlman’s perspective)

At the Token2049 event, Perlman stressed the importance of having productive conversations with regulators. He believes that effective regulation can be achieved by remaining receptive to cooperation.

Regarding Binance’s agreement with the DOJ, the exchange’s COO acknowledged that stricter regulations are now in place. With the US administration assuming the role of the enforcing authority for Binance’s compliance.

We’re not overly excited about it, but we’ll proceed as a means to further improve our programs and processes.

Noah Perlman, COO Binance

In November 2023, Binance admitted guilt and consented to pay a fine of $4.3 billion to resolve money laundering accusations brought against them by the Department of Justice (DOJ). As a condition of this arrangement, Binance’s founder and chief executive officer, Changpeng Zhao, also confessed and relinquished his leadership role. Furthermore, Binance pledged to retain an external compliance supervisor for three years and improve its existing anti-money laundering and sanctions compliance procedures.

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2024-04-19 13:35