Aside from the huge fines imposed on Binance and its former CEO Changpeng Zhao announced this week by US regulators and the crypto exchange, there was another important facet to the shock plea deal that is likely to have a big impact on the company’s future, according to a report by Fortune, which noted that while Binance looks likely to survive a raft of illegal dealings, it made legal vows with “the potential to hobble its status as an industry leader” and transform its infamous “cavalier” corporate culture.
The company will face “long-term pain” because it had to agree to having court-appointed monitors from both the Justice Department and the Treasury Department‘s Financial Crimes Enforcement Network for three and five-year terms and they will “enjoy sweeping powers to oversee Binance’s business practices,” the report said, adding that the monitors “will enjoy a high degree of autonomy” and must be experts in strict US anti-money laundering and sanctions rules. Shadowy customers who flocked to the platform because of its lack of oversight are expected to swap to “less compliant” exchanges.
Read the full report: Fortune.
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