A former high-ranking official of the U.S. Securities and Exchange Commission (SEC) says that BINANCE is now subject to stringent monitoring following its plea agreement with the US government.
Last month, the world’s largest crypto exchange to pay over $4 billion in fines and admit that it violated US laws by engaging in money laundering, violating sanctions and operating an unregistered money-transmitting business.
Binance also agreed to the appointment of an independent monitor to assess and report on its compliance with the plea terms.
Citing newly released filings made by the U.S. Department of Justice (DOJ), former chief of the SEC’s Office of Internet Enforcement John Reed Stark the monitor’s mandate is so wide-ranging and comprehensive that it requires a 13-page document to present 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 use its best efforts to provide the monitor with access to the companies, former employees, agents, intermediary, consultants, representatives, distributors, licenses, contractors, suppliers and joint venture partners.
The monitor may even opt NOT to inform Binance about its findings under certain circumstances. In fact, in some situations, the monitor must immediately report potential misconduct directly to the government, and not to Binance.”
Stark says the government now enjoys extensive, robust and vigorous oversight over Binance with a monitorship never before seen with global financial companies.
“The breadth and scope of the DOJ monitorship, together with the monitorships imposed by the U.S. Financial Crimes Enforcement Network (FinCEN) and related Binance compliance commitments cannot be understated – in fact, this kind of DOJ/FinCEN supervision of a global financial firm is simply unprecedented.”
