Binance, a leading cryptocurrency exchange, is reportedly close to finalizing an agreement that would allow it to terminate the compliance monitor imposed by the U.S. Department of Justice (DOJ). While no definitive decision has been reached, the ongoing discussions suggest a potential early conclusion to a critical oversight period for the exchange. However, sources indicate that Binance would first need to demonstrate enhanced compliance reporting standards.

The compliance monitor was a central component of a plea deal secured by Binance with the U.S. government in 2023. This agreement followed charges related to anti-money laundering (AML) and sanctions violations, which prompted a comprehensive overhaul of the exchange's operational practices. Initially, the monitorship was slated to last for a duration of three years, commencing in 2024.

Forensic Risk Alliance (FRA), an international consultancy renowned for its expertise in forensic accounting, was selected by the DOJ to serve as the compliance monitor. FRA was chosen over other contenders, including Sullivan & Cromwell, for this crucial role. As the appointed monitor, FRA was granted extensive access to Binance's internal documentation and various corporate records. Its mandate included the thorough review and evaluation of the cryptocurrency giant's compliance policies, with the authority to propose specific recommendations for improvement.

As part of the broader settlement, Binance had previously agreed to pay over $4 billion in fines. Additionally, the plea deal led to the resignation of Changpeng Zhao (CZ), the company's founder and former CEO, who subsequently served several months in prison. Earlier this year, Zhao publicly confirmed his intention to seek a pardon, highlighting the personal repercussions of the legal proceedings.