Binance’s Compliance Monitoring
Sullivan & Cromwell, a prominent New York law firm currently involved in FTX’s bankruptcy proceedings, is on track to become the independent monitor for Binance Holdings as the company settles with the US government. This development highlights the significance of compliance monitoring in the cryptocurrency industry. Former federal prosecutor and Sullivan & Cromwell partner, Sharon Cohen Levin, is poised to lead the monitorship team, showing a strong commitment to ensuring Binance’s adherence to regulations.
The Monitoring Process
The Department of Justice (DOJ) and the Treasury’s Financial Crimes Enforcement Network have imposed monitorships on Binance following its guilty plea to anti-money laundering and sanctions violations. The monitorships, with durations spanning three to five years, aim to oversee and improve Binance’s anti-money laundering and sanctions programs. This involves thorough reviews of company data including records, facilities, and employee practices, with periodic reports submitted to the government.
Sharon Cohen Levin, with her background in anti-money laundering and sanctions, is a key figure in this process, lending her expertise to address the deficiencies identified within Binance’s operations. The Selection of Sullivan & Cromwell for this significant role underscores the firm’s capability in handling complex legal matters within the cryptocurrency sector.
Furthermore, in bolstering its cybersecurity efforts, Binance recently collaborated with INTERPOL to enhance global cybersecurity measures. By hosting sessions focused on cryptocurrency investigations and cyber policing, Binance demonstrates a proactive approach to tackling evolving cyber threats in the Web3 space.
Despite the stringent monitoring and compliance requirements, Binance remains under regulatory scrutiny from various authorities. The Securities and Exchange Commission (SEC) initiated enforcement action against Binance for the alleged sale of unregistered securities, adding to the challenges faced by the exchange.
