Kathleen Hamann Quoted in Global Investigations Review: Binance Resolution Signals “Some Optimism” About Crypto Compliance, Lawyers Say

Excerpted from the February 6, 2024 edition of Global Investigations Review

Binance, a global company that operates a large cryptocurrency exchange recently entered into a resolution with US authorities for “massive compliance failures.” In addition to a $4 billion fine, the company has been “booted from the US market and will need to foot the bill for two compliance monitorships.”

Some lawyers believe that the deal offers Binance, “an opportunity to rebuild trust with customers and avoid further blowback outside of the US, and shows that US regulators are open to the possibility that the crypto industry can be brought into compliance rather than criminalized outright.”

Pierce Atwood litigation and white-collar attorney Kathleen Hamann noted, “In the immediate term, Binance’s resolution with US authorities will still negatively impact its credibility with investors and foreign regulatory agencies. Governments are going to be looking at [Binance] sideways and financial institutions are going to hold them at arm’s length.”

“But if the company can satisfy the high compliance standards required by US regulators, it will be in an excellent position to keep operating on the global market. Once Binance has successfully completed its monitorships, the company will be released from its obligations to offboard US clients and will be able to re-enter the US market. There hasn’t really been a monitorship like this before and there’s a lot to cover,” Kate added. 

Finally, Kate stated that, in her view, “the US’s resolution with Binance sends a signal that crypto exchanges need all the same safeguards as traditional financial institutions to operate in the US, such as being a registered exchange and having an anti-money laundering and know-your-customer program.” 

The complete article by Gaspard LeDem can be found in the February 6, 2024 edition of Global Investigations Review