Binance.US, the American subsidiary of global cryptocurrency behemoth Binance, has announced the appointment of Lesley O’Neill as its new Chief Compliance Officer. O’Neill brings a wealth of experience to the role, having previously worked at digital identity fintech Prove Identity for five years, where she served as Chief Compliance Officer for two years. Prior to her tenure at Prove, she also had experience in the traditional finance sector.
Responsibilities of the Chief Compliance Officer
As the Chief Compliance Officer at Binance.US, O’Neill will be responsible for overseeing the firm’s know-your-customer (KYC), anti-money laundering (AML), and sanctions programs. This is a crucial role given the increasing regulatory scrutiny that Binance.US and its parent company Binance have faced in recent months.
Ongoing Regulatory Challenges
Binance.US and Binance have faced significant regulatory challenges lately. In June, the Securities and Exchange Commission (SEC) initiated an enforcement action against them, alleging the sale of unregistered securities. The SEC lawsuit named Binance founder Changpeng Zhao as one of the defendants and accused him of controlling Binance.US despite claiming it operated independently. Zhao later stepped down as CEO and pleaded guilty to an anti-money laundering violation, resulting in a $50 million fine.
Binance as a company also settled with various regulatory bodies, paying a total of $4.3 billion in penalties to the Justice Department, the Treasury Department, the Commodity Futures Trading Commission, and the Office of Foreign Assets Control. These regulatory challenges have led to executive departures at Binance.US, including former CEO Brian Shroder and the Chief Risk Officer, Sidney Majalya, and Head of Legal, Krishna Juvvadi.
The Appointment of Lesley O’Neill
Lesley O’Neill assumes the position of Chief Compliance Officer at Binance.US, taking over from Tammy Weinrib. Interim CEO Norman Reed expressed his confidence in O’Neill, highlighting her expertise in fraud and identity, as well as her successful track record in developing and managing compliance and legal functions.
“It is incredibly exciting to join Binance.US at this important time for the company and digital asset industry,” O’Neill said.
O’Neill emphasized her commitment to earning and maintaining the trust of customers and regulators by building upon the company’s strong foundation of compliance and deepening its commitment to accountability and transparency.
Despite the regulatory challenges Binance has faced, it is expected to maintain its position as the dominant global exchange, particularly in non-U.S. markets. According to a research report by broker Bernstein, Binance experienced minor outflows of less than $1 billion following the news of the settlement, indicating that there was no significant panic among customers.
“Binance’s reputation with retail non-U.S. customers has remained strong throughout the crisis,” noted Gautam Chhugani, lead analyst at Bernstein.
However, the report also anticipates increased competition from rivals like Coinbase and new exchanges in regulated markets such as Hong Kong and Singapore.
