Binance’s record-breaking $4.3-billion settlement with the United States last year was a “turning page” for the exchange, which is welcoming the “coming wave of regulation,” said its head of institutional and VIPs Catherine Chen.
Part of Binance’s settlement saw it employ an independent compliance monitor for three years and agree to a five-year U.S. Treasury monitor, which Chen said was “frankly, a great thing from my perspective” on an April 10 Paris Blockchain Week panel moderated by Cointelegraph editor-at-large Kristina Cornèr.
Chen also brushed off concerns that Binance’s performance would suffer under the monitoring agreement, claiming it had “been preparing for it.”
“It is a challenge, but it’s a welcome challenge, and we fully embrace it because we know that that would be great for the market.”
In November 2023, Binance, Binance.US and co-founder Changpang “CZ” Zhao paid the U.S. government $4.3 billion to settle charges of violating Anti-Money Laundering (AML) and sanctions laws.
Zhao agreed to step down as CEO and pleaded guilty to failing to maintain an AML program. He faces up to 18 months in jail, with his sentencing set for April 30.
On the panel, Chen said having regulation in place “gives a lot more clarity” to Binance’s users and “will help them be a lot more comfortable with the industry, with the asset class [and] with the key players.”
“Although people see challenges for us, it’s actually great. It’s the best thing that can and should happen to the industry,” she added.
Related: Philippines SEC ‘can’t endorse’ ways to retrieve funds after Binance ban
Binance’s new CEO, Richard Teng, told CNBC on April 9 that it “was operating in a certain fashion,” but it had “moved past that as the company moves into greater maturity.”
In an on-stage interview at Paris Blockchain Week the same day, Teng said the exchange — famous for never having formal headquarters under Zhao — was looking for a global HQ and was “speaking to a few jurisdictions.”
The Securities and Exchange Commission is still pursuing charges against Binance, Binance.US and Zhao, claiming they sold unregistered securities and commingled customer assets — allegations that Binance denies.
Magazine: ‘SEAL 911’ team of white hats formed to fight crypto hacks in real time