Binance is reaching an agreement with the US Department of Justice, which may relieve compliance regulations

On September 17 (UTC 8), sources familiar with the matter revealed that Binance, the world's leading cryptocurrency exchange, is in negotiations with the US Department of Justice (DOJ) to amend certain terms of the $4.3 billion settlement reached last year.

The settlement stems from allegations that Binance failed to effectively implement anti-money laundering (AML) measures. The discussions are currently centered on whether to remove a key three-year regulatory mechanism from the agreement.

It is reported that if the amendment is reached, Binance may no longer be subject to the original independent compliance monitoring arrangement, but will be required to strengthen its own compliance reporting mechanisms and internal control systems.

Currently, Binance remains under the supervision of a supervisor designated by the US Treasury Department's Financial Crimes Enforcement Network (FinCEN). The DOJ has not yet made a final decision on the matter and has not publicly responded.

Binance has also remained silent and has not commented on the relevant reports. This development occurs within a broader policy context. Since the Biden administration took office, the Department of Justice has established external oversight and independent compliance monitoring mechanisms for numerous companies.

Recently, the department appears to be gradually relaxing these requirements, demonstrating a subtle shift in its approach to the use of corporate regulatory tools. Several companies under similar settlement frameworks have also received adjustments to regulatory conditions or early terminations.

Analysts believe that if this revision is passed, it may reduce Binance's compliance burden, but it will also require it to establish a more rigorous and transparent self-regulatory mechanism to comply with federal government statutory requirements for anti-money laundering and financial crime prevention.