Cryptocurrency exchange Binance (BNB-USD) has been assigned two separate and independent compliance monitors by the U.S. regulators, the U.S. Department of Justice and the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). The move comes as part of a $4.3 billion settlement the company reached in November 2023 for violating money-laundering laws.
The Justice Department has appointed Frances McLeod, one of the founders of the consulting firm Forensic Risk Alliance, to review Binance’s activities over the next three years. Additionally, FinCEN has appointed Sharon Cohen to oversee Binance’s compliance with the terms of last year’s settlement.
The regulators require the monitors to ensure that Binance completely exits the U.S. market and establishes an effective anti-money laundering program. Additionally, FinCEN stated that BNB might face further penalties if it fails to adhere to the monitorship terms, including a $150 million suspended fine.
Anti-money Laundering Laws for Cryptos
Importantly, the U.S. Treasury released a strategy for controlling money laundering incidents in the crypto market last week. The regulator broadly highlighted key priorities, which include closing holes in anti-money laundering laws, making law enforcement agencies more effective, and using new technology to their advantage.
To achieve these goals, the Treasury aims to update anti-money laundering laws and work towards the global implementation of Financial Action Task Force standards.
Is BNB a Buy or Sell?
Binance has faced numerous challenges over the past few months. The company’s founder, Changpeng Zhao, was given a four-month prison sentence by the federal court in Seattle. Additionally, in March 2024, BNB and two of its executives were charged with tax evasion in Nigeria. Despite Binance’s woes, the BNB coin has gained nearly 84% so far in 2024. Further, the real-time directional predictions derived from BNB onchain signals are mostly bullish.
