Binance is on the verge of reaching a new arrangement that could eliminate the necessity for an “independent compliance auditor,” which is a pivotal aspect of its $4.3 billion settlement with the U.S. Department of Justice (DOJ).
As reported by Bloomberg, Binance, recognized as the largest cryptocurrency exchange globally, is currently negotiating with the DOJ to remove this stipulation from their 2023 agreement aimed at resolving allegations related to inadequate measures against money laundering.
Insiders indicate that federal prosecutors are contemplating waiving Binance’s obligation to engage an external auditor. This potential shift may represent a broader trend towards relaxing independent auditing standards that have been commonly enforced during President Biden’s administration. The DOJ has previously discontinued auditing requirements for several prominent corporations.
The company is actively working to restore its credibility with U.S. regulators following its substantial penalty. In May, founder Changpeng Zhao revealed in a podcast his intention to seek clemency from former President Donald Trump after serving four months in prison as part of this settlement deal. Additionally, Binance has been involved in a stablecoin initiative launched by World Liberty Financial, associated with Trump’s family business.
The DOJ has not yet reached a conclusive decision regarding this matter. Should they be exempted from the audit requirement, it’s anticipated that Binance will face more stringent reporting and compliance responsibilities moving forward. Neither the DOJ nor Binance has provided comments regarding these developments.
At present, Binance collaborates with two distinct auditors designated by both the DOJ and FinCEN (Financial Crimes Enforcement Network) under the U.S Treasury Department.
*This information should not be considered investment advice.