Challenges Arise as US Monitoring Deal Impacts Binance, says Token2049’s COO

Binance’s COO, Noah Perlman, acknowledges that the monitoring agreement with U.S. regulators is presenting difficulties for the exchange, despite initially seeing it as an opportunity for improvement. The plea agreement with the U.S. Department of Justice, which includes the appointment of an independent compliance monitor for three years, is now hindering Binance’s global expansion efforts, as the U.S. has assumed the role of an “authorized referee,” according to Perlman. Speaking at the Token2049 conference, Perlman emphasized the importance of engaging in constructive dialogue with regulators, stating that collaboration is essential for effective regulation. Perlman also highlighted that Binance now has to meet enhanced requirements as the U.S. government oversees and enforces compliance for the exchange. In November 2023, Binance pleaded guilty and agreed to pay $4.3 billion to settle criminal money laundering charges brought by the DOJ. As part of the settlement, Binance’s CEO, Changpeng Zhao, also pleaded guilty and agreed to step down. Additionally, Binance committed to retaining an independent compliance monitor for three years and enhancing its anti-money laundering and sanctions compliance programs.