The American Department of Justice (DOJ) appoints Forensic Risk Alliance (FRA) to take over compliance operations monitoring of the cryptocurrency exchange Binance on their behalf in the next three years. This step, made in the wake of Binance’s guilty plea to money laundering and other federal offenses, which included a large fine, is the latest in the string of similar developments.Â
FRA will constantly supervise whether Binance abides by the laws in force. With regard to the development in the ongoing regulatory case against cryptocurrencies and their sector, this is a long-awaited move.Â
Why did the DOJÂ choose FRA to monitor Binance,Â
 As part of its effort to undermine the offshore operations of Binance the Justice Department of the US has ceded its role in the policing of the company to FRA, a renowned international consultancy agency based in the Netherlands.Â
The Settlement is based on the DOP’s deal with Binance, and that is so as to the monitor is put by such an independent monitor into office for a term of 3 years. The role of FRA will include thorough monitoring of activities of the Binance exchange system, such as personnel access to the latter’s internal records, premises, and so on, to provide the DOJ with the latest information on the situation.Â
Department of Justice chose (FRA), a well-reputed firm on Wall Street, over Sullivan & Cromwell (SC) which is a prominent Wall Street law firm, after a good deal of investigation. At first glance, it looked like Sullivan & Cromwell was the best option for the discussion. Â
Significance of FRA appointment
Sullivan & Cromwell firm previously helped rival crypto exchange FTX that went bankrupt only a few days before. This questioned the necessity of law enforcement agencies’ involvement and fueled DOJ’s decision to support the FRA in order to eliminate bias of agencies and possible conflicts of interest.Â
 When Binance agreed to undergo scrutiny, it showed high instead of the escalating scrutiny seen in the cryptocurrency industry. Nowadays, exchanges like Binance are very careful with government agencies, and transparency or adherence to the AML and KYC regulations is compulsory. The seating of the FRA hints at the DOJ’s advocacy through its role in defending the financial sector from underground activities like financing terrorism and driving out scams in the crypto space.Â