Binance has now hired Greg Monahan, a veteran US federal criminal investigator who formerly worked for the Internal Revenue Service (IRS), to oversee the crypto exchange’s global money-laundering reporting operations.
Binance, the world’s largest cryptocurrency exchange, has been in regulatory hot water for a long period of time. The cryptocurrency exchange has previously pledged to correct its ways and work with regulators worldwide to ensure compliance. It has taken many steps since then, including decreasing its high-leverage trading limits and discontinuing its derivatives offerings in Hong Kong and throughout Europe.
My efforts will be focused on expanding Binance’s international anti-money laundering and investigation programs, as well as strengthening the organization’s relations with regulatory and law enforcement bodies worldwide,” said Monahan
This is not the first time a former US official has joined Binance to assist the company in navigating regulatory challenges, particularly in the US. Despite its size and popularity outside the United States, the crypto exchange has been unable to replicate its success in the country but is constantly attempting to change that. However, regulatory concerns for the exchange have intensified in recent months, as nearly a dozen more countries issued non-compliance warnings, declaring the exchange’s operations illegal in those countries.
Would Binance Be Able to Conquer the United States of America’s Markets?
The cryptocurrency exchange recruited a number of former government officials with regulatory experience. It has employed two former Financial Action Task Force (FATF) executives and former Democratic Senator Max Baucus. However, Brian Brooks, the CEO of Binance.US, a wholly-owned subsidiary of Binance, resigned just three months after taking the helm. He cited strategic disagreements as to the impetus for the departure.
Brooks served as Acting Comptroller of the Currency (OCC) during the Trump administration, and his nomination was viewed as a significant step forward for the crypto exchange in terms of compliance. As a result, many were taken aback by his departure.
Binance’s regulatory woes come at a critical time, as US competitors such as Coinbase and FTX accelerate their growth while Binance is forced to slow. Changpeng Zhao, the CEO of the cryptocurrency exchange, has even stated that he is willing to step down in favor of someone who can lead the exchange out of regulatory limbo.
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