The United States Department of Justice (DOJ) has appointed Forensic Risk Alliance (FRA) to oversee Binance's compliance for the next three years. This decision is part of the exchange's plea deal with the DOJ last year, which included a $4.3 billion fine and the appointment of an independent monitor. Binance's co-founder, Changpeng "CZ" Zhao, also stepped down as CEO and was sentenced to four months in jail.

FRA, a London-based consulting firm, will access Binance's internal records and ensure the exchange complies with the plea agreement. The DOJ chose FRA over Wall Street law firm Sullivan & Cromwell (S&C), which was embroiled in a controversy over its work with the now-defunct FTX exchange.

As part of its monitoring role, FRA will evaluate Binance's practices to prevent misconduct and establish an effective ethics and compliance program. This development comes as Binance faces pressure from regulatory bodies worldwide, including a recent $4.4 million fine from Canada's financial regulator, FINTRAC, for non-compliance with money-laundering protections.

Despite these challenges, Binance has committed to increasing compliance, as evident in the establishment of its first-ever board of directors. The exchange's three-year monitorship by FRA marks a significant step towards ensuring its compliance and ethics practices align with regulatory requirements.