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- US Treasury is pushing Binance to fully comply with its 2023 monitoring agreement.
- Allegations involve $1B in potential Iran-linked crypto transactions.
- Binance insists it is cooperating and strengthening AML controls.
The US Department of the Treasury is reportedly intensifying oversight of Binance, demanding the crypto exchange adhere to a strict monitoring program tied to its 2023 settlement. The move follows allegations that around $1 billion in transactions may have flowed through the platform to entities linked to Iran, raising fresh concerns about compliance and anti-money laundering controls in the global crypto sector.
The development adds another layer of scrutiny to Binance, which already sits under a three-year government monitoring program after its historic $4.3 billion settlement with US authorities.
Treasury Pushes for Stricter Oversight
According to reports, the Treasury Department privately insisted that Binance fully comply with the monitoring framework established in its 2023 agreement with US regulators. That agreement involved both the Treasury and the Department of Justice and was designed to enforce stronger financial crime safeguards across the exchange’s operations.
The latest pressure reportedly follows internal concerns that Binance dismissed staff who had flagged suspicious transactions allegedly involving Iranian-linked entities. Those concerns later escalated to US lawmakers, who urged Treasury officials to review Binance’s adherence to its settlement obligations.
Compliance Under the Spotlight
Binance has responded by emphasizing its cooperation with regulators and its commitment to strengthening compliance systems. A spokesperson said the company is working closely with its independent monitor and providing full transparency as part of its ongoing obligations.
The exchange has repeatedly pointed to improvements in its anti-money laundering (AML) frameworks since the settlement, framing regulatory oversight as a necessary part of rebuilding trust with global authorities.
However, the allegations have reignited debate over whether large crypto platforms can effectively police cross-border transactions at scale, especially in regions subject to sanctions.
Zhao’s Exit and Renewed Scrutiny
The report surfaced as Binance founder Changpeng Zhao appeared at the Consensus conference in Miami. Zhao, who stepped down as CEO following the 2023 settlement, reiterated that he has no plans to lead another company, citing limited stamina for startup leadership.
Also Read: Binance Launches New Rule to Prevent Spot Market Chaos – Are You Protected?
His comments come as Binance continues to face political scrutiny, including questions surrounding investments tied to entities associated with figures in US political circles and broader concerns over regulatory influence in the crypto sector.
The latest Treasury pressure underscores how closely Binance remains tied to US regulatory expectations following its landmark settlement. While the exchange insists it is cooperating fully, the renewed focus on potential Iran-linked transactions highlights ongoing tensions between global crypto platforms and financial watchdogs determined to enforce stricter compliance standards.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
