As the industry’s largest platform, Binance recently surpassed 250 million registered users. Having pulled out of the U.S. market over anti-money laundering (AML) violations, the company is now apparently in pursuit of a return. Further, Binance has been engaged in good faith negotiations regarding unresolved matters with the U.S. Treasury Department. They aren’t just smelling the sweet smoke from World Liberty Financial’s likely new stablecoin initial public offering — crypto spinoff of Donald Trump Jr. and Eric Trump’s digital revolution! This decision would open the token to a huge new pool of investors. At the same time, it raises key questions in regards to regulatory compliance and conflicts of interest.
The company pleaded guilty to AML violations in 2023 and paid a record $4.3 billion fine for allowing illicit actors to move billions of dollars through its exchange. As part of the settlement, Binance kicked all U.S. customers off its platform and promised to proactively flag all suspicious transactions. Now, seeking to return, Binance is reportedly asking the Treasury to remove a government-appointed monitor overseeing its compliance with AML laws.
The possibility that World Liberty Financial’s new stablecoin may be listed compounds the issue. So a successful initial listing on Binance would create one of the largest Trump family fortune windfalls in history. Considering Binance’s massive share of the international market, this could easily translate to billions.
Those negotiations between Binance and the Treasury Department continue, so it’s anyone’s guess how this will all end. Making it through the regulatory minefield and getting approval for a return to the U.S. will be a tall order for Binance. Finally, the corporation needs to demonstrate that it is very committed to completely adhering to AML laws. It must address worries over potential conflicts of interest when it comes to its relationship with the Trump-connected crypto startup.
