Unchained How Binance Will Open All Its Activity to the U.S. Government - Ep. 581
Dec 12, 2023
Michael Dawson, a partner at WilmerHale specializing in financial compliance, and Dorothy DeWitt, founder of Tolt Strategies and former CFTC director, dive into Binance's recent $4.3 billion settlement with the U.S. government. They discuss the role of compliance monitors, why they were deemed necessary, and how this impacts the broader crypto landscape. The pair also explore challenges faced by Binance in complying with U.S. regulations and the potential ripple effect of increased monitorships across the industry.
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Compliance Monitor Role
- A compliance monitor is an independent entity paid by the company but reports to the government.
- They assess the company's compliance with regulations and oversee the implementation of new compliance measures.
Government's strategic goals with settlement
- The US government aims to gain insight and influence over Binance's operations.
- This five-year settlement provides access and influence they might not otherwise have.
De Facto Regulation via Monitorship
- The DOJ's decision to impose a monitor stems partly from Binance not being regulated by a foreign regulator.
- This de facto regulation will likely ripple across the industry, influencing other players.