Binance approaches deal with DOJ to drop outside monitor from $4.3 billion settlement
John: Hey there, folks! I’m John, a veteran writer for Blockchain Bulletin, where I break down the wild world of Web3, crypto, and blockchain in straightforward English. Today, we’re diving into the latest buzz around Binance and its potential deal with the U.S. Department of Justice to drop an outside compliance monitor from that massive 2023 settlement. For readers who want a full step-by-step guide, you can also check this exchange guide.
Lila: Hi everyone, I’m Lila, John’s curious assistant always eager to learn more about crypto. John, for beginners like me, what’s this compliance monitor thing all about, and why might Binance get to skip it now?
Background on Binance’s 2023 Settlement
John: Let’s start with the past. Back on 2023-11-21, Binance, the world’s largest crypto exchange, agreed to a whopping $4.3 billion settlement with the U.S. Department of Justice and other agencies. This came after investigations into violations of anti-money laundering laws and sanctions, where Binance admitted to not properly monitoring transactions that could involve illicit activities.
Lila: Wow, $4.3 billion is a huge number! What exactly did that settlement include?
John: Good question, Lila. The deal required Binance to pay fines, with $3.4 billion going to the Financial Crimes Enforcement Network and $968 million to the Office of Foreign Assets Control. Plus, founder Changpeng ‘CZ’ Zhao stepped down as CEO and pleaded guilty, facing potential prison time. As part of it, Binance had to hire an independent compliance monitor for three years to oversee their operations and ensure they followed the rules—kind of like a strict teacher watching over homework (but hey, no detention for crypto exchanges).
What is a Compliance Monitor?
Lila: Compliance monitor sounds technical. Can you explain it in simple terms?
John: Absolutely, Lila. Think of a compliance monitor as an outside expert appointed by regulators to keep an eye on a company’s internal processes. In Binance’s case, this monitor would review their anti-money laundering programs, report any issues directly to the DOJ, and help prevent future slip-ups. It’s like having a referee on the field to make sure the game is played fair.
Lila: Got it—that makes sense for building trust. But why was this required in the first place?
John: In the past, Binance handled about 60% of global crypto spot trading without adequate checks, which led to the 2023 charges. The monitor was meant to bridge that gap, ensuring the exchange beefed up its compliance to match strict U.S. standards.
Recent Developments as of 2025
John: Fast-forward to now. As of 2025-09-16, reports from reliable sources like Cointelegraph and CryptoSlate indicate Binance is in talks with the DOJ to potentially remove this three-year compliance monitor requirement. This stems from the original $4.3 billion settlement, and it’s tied to a policy shift under the current Trump administration.
Lila: A policy shift? What does that mean for Binance?
John: It means the DOJ is reconsidering the need for external oversight, possibly because Binance has shown improvements in compliance. According to Bloomberg, cited in Cointelegraph, this could allow Binance to operate without that extra layer of monitoring, saving them resources while still committing to internal standards. (And who wouldn’t want to ditch the hall monitor if they’ve aced their exams?)
Reasons for the Potential Change
Lila: So, why the change now? Is it just because of the new administration?
John: Based on verified reports from CryptoSlate and CoinDesk, the broader policy under President Trump’s administration is leaning toward reducing regulatory burdens on businesses, including in crypto. Binance has reportedly ramped up its compliance efforts since 2023, with new CEO Richard Teng taking over and implementing stronger measures. This progress might convince the DOJ that self-monitoring is sufficient.
Lila: Interesting! Are there any risks if they remove the monitor?
John: There could be, but sources emphasize that any deal would still hold Binance accountable. The DOJ isn’t dropping the settlement entirely—just this one oversight piece—as long as Binance maintains high standards.
Implications for Binance and the Crypto Industry
John: Looking at the present landscape, this development could boost Binance’s operations by reducing costs and oversight hassles. It might signal a friendlier regulatory environment for crypto under the current U.S. leadership, encouraging more innovation. However, it also puts the spotlight on self-regulation in the industry.
Lila: What about users? How does this affect everyday traders?
John: For users, it could mean a more efficient exchange, but it’s crucial to remember that compliance protects everyone from fraud. If finalized, this deal might inspire other exchanges to strengthen their own programs voluntarily, fostering trust across Web3.
Tips for Navigating Crypto Exchanges
Lila: With all this news, what tips do you have for beginners choosing an exchange like Binance?
John: Great point, Lila. Here’s a quick list of verified tips based on sources like our Blockchain Bulletin guides:
- Check for regulatory compliance: Look for exchanges licensed in your region, like Binance’s efforts post-2023.
- Review security features: Ensure two-factor authentication and cold storage for funds.
- Read user reviews: Sites like CoinDesk often highlight exchange reliability.
- Start small: Test with a small deposit to get comfortable.
- Stay updated: Follow official news from Cointelegraph for the latest on settlements like this.
Lila: Thanks, that’s super practical!
Looking Ahead
John: Peering into the future, if this deal goes through, we might see it finalized in late 2025 or early 2026, based on ongoing talks reported by Seeking Alpha. It could set a precedent for how regulators handle crypto giants, potentially easing tensions. Keep an eye on official DOJ announcements for confirmation.
Lila: Will this change how other countries view Binance?
John: Possibly—global regulators often watch U.S. moves. For now, it’s a U.S.-focused shift, but it might influence international policies, promoting a balanced approach to crypto oversight.
John: Wrapping this up, it’s exciting to see how Binance is evolving from its 2023 challenges into what could be a more independent future. Regulatory stories like this remind us that crypto is maturing, with exchanges stepping up their game. And if you’d like even more exchange tips, have a look at this global guide.
Lila: Totally agree—staying informed is key in crypto. Thanks for breaking it down, John; it makes big news feel approachable!
This article was created using the original article below and verified real-time sources:
- Binance approaches deal with DOJ to drop outside monitor from $4.3 billion settlement
- Binance May Escape DOJ Compliance Monitor in $4.3B Settlement Deal
- Binance to Pay $4.3B to Settle U.S. Criminal Case; Changpeng ‘CZ’ Zhao Resigns as CEO and Pleads Guilty in Seattle
- U.S. Treasury Announces Largest Settlements in History with World’s Largest Virtual Currency Exchange Binance