Binance Resolution Signals “Some Optimism” About Crypto Compliance, Lawyers Say

Arlo Devlin-Brown’s commentary was included in a Global Investigations Review article covering the Binance resolution over compliance failures and what that resolution means both for Binance and the cryptocurrency exchange writ large. The article also covers how Binance’s settlement could be an opportunity for the company to rebuild trust with consumers.

Arlo offers his insight on the matter, saying, “I see this as a case of a company that has made a strategic decision that is based on some optimism about its future.”

Arlo also commented on Binance’s approach to future compliance reviews, saying “I suspect they're positioning themselves for the long term.” He further observed that the five-year compliance monitorship by the Financial Crimes Enforcement Network (FinCEN) may not be as bad as it sounds because crypto trading is “pretty limited” in the U.S., which bans many of the more “exotic” trades – like certain options and leveraged trades – that are legal in other countries. “The market for crypto trading is much larger outside the U.S.,” Arlo said, “in part because countries are not policing crypto trading. ‘Exotic’ crypto trades may not be explicitly allowed in other jurisdictions, but there is no enforcement to stop users. I don’t know how much they’re really giving up right now.”