In an unprecedented move, Binance, the world's largest cryptocurrency exchange, has agreed to have two independent firms oversee its operations for the next few years. This development is part of a $4.3 billion settlement with the US Department of Justice and the Treasury Department, stemming from allegations of lax anti-money laundering protocols. The two firms tasked with monitoring Binance's compliance are Sullivan & Cromwell and Forensic Risk Alliance (FRA).

Binance has confirmed its commitment to collaborating with the appointed monitors, Sharon Cohen Levin from Sullivan and Cromwell, and Frances McLeod at Forensic Risk Alliance. The exchange aims to become the most trusted and secure asset exchange globally, and this monitorship is seen as a crucial step in achieving this goal.

As part of the settlement, Binance is required to share information and data with the monitors to ensure its compliance with regulatory requirements. This agreement is a first of its kind, with former CEO Changpeng Zhao receiving a four-month prison sentence after pleading guilty as part of the deal.

The appointment of two separate monitors is unusual, according to Richard Donoghue, a partner at Pillsbury Winthrop Shaw Pittman and a former senior official for the Justice Department. He notes that this arrangement is likely due to the different agendas of the DOJ and the Treasury Department, both of which have their own monitors. Binance's massive size and influence in the cryptocurrency market make it a significant entity to be scrutinized.

The monitors will have unfettered access to Binance's operations, essentially "living under their roof" for years to come. This arrangement ensures that Binance will be held accountable for any potential violations of anti-money laundering protocols and will be required to implement necessary changes to maintain compliance. As the cryptocurrency market continues to evolve, Binance's settlement with the US government sets a precedent for increased regulatory oversight and cooperation.