On December 8th, Binance's compliance commitment with the U.S. Department of Justice (DOJ) was revealed, shedding light on significant oversight of the cryptocurrency exchange's operations and business activities in the United States. Former SEC official John Reed Stark shared an analysis report on the X platform, disclosing a detailed list of Binance's new compliance obligations.
Stark pointed out that Binance's new obligations are outlined in an 11-page document, including requests from authorities, cooperation allowing authorities to review documents, records, and resources, including information related to “former employees, agents, intermediaries, advisors, representatives, distributors, licenses, contractors, suppliers, and joint venture partners.” Various divisions within the Department of Justice's criminal division, such as the Money Laundering and Asset Recovery Section, National Security Division, Counterintelligence and Export Control Section, and the U.S. Attorney's Office for the Western District of Washington, will closely monitor the exchange's activities. Binance's previous plea agreement with the U.S. government also includes a five-year regulatory oversight by the Financial Crimes Enforcement Network (FinCEN).
Stark stated that the settlement agreement requires Binance to provide immediate access, audits, reviews, and inspections for several years to the Department of Justice, FinCEN, various financial regulatory agencies, and law enforcement agencies. This ensures that the company and its customers face 24/7 financial scrutiny throughout the year.