Binance is negotiating with the U.S. Department of Justice on abandoning independent compliance watchdog

According to ChainCatcher, people familiar with the matter revealed that crypto exchange Binance is in talks with the U.S. Department of Justice on a potential agreement that will allow Binance to exempt a critical oversight requirement when paying $4.3 billion to settle allegations of “inadequate measures to prevent money laundering”, people familiar with the matter revealed. Federal prosecutors are discussing with Binance about the requirement to set up an external compliance ombudsman. If the request changes, it will mark the latest softening trend of the U.S. Department of Justice in the use of independent oversight, which has previously canceled several ombudsmen appointed by the Biden administration. The Justice Department has not yet made a final decision on whether to cancel the three-year supervision system. Binance may still have to accept stricter compliance reporting requirements before the Justice Department’s approval.