Binance faces challenges yet again. Not quietly. Not hypothetically. Now. Internal reports and messages related to compliance that have leaked seem to point to the fact that the world’s largest cryptocurrency exchange continues to process high-risk transactions despite a historic settlement with US regulators.In these texts, the relevant question being asked at present in unison by regulators, investors, and the government is: Is Binance really transforming, or has just the compliance problem become less noticeable in the world of cryptocurrency? Timing is of the essence. It becomes relevant in the context of the ever-tightening global framework of regulation of cryptocurrencies, the focus on enforcement, and intolerance of grey areas. It is not even an issue of whether there should be cryptocurrency regulation. The answer to that question is long past. Binance has already paid out a settlement in the order of multiple billions, in addition to agreeing to abide by strict regulations. This was a time that was expected to mark the beginning of crypto’s co-existence with the norms of the financial market across the world.There are suggestions that the accounts that contained the characteristics of high risk had been identified as such by the compliance departments. Some transaction patterns had raised an alarm. Escalations within the company had occurred.It is this difference, between the warning and the guarantee, that regulators are most anxious about. It shifts the emphasis from past mistakes to the present risk.This in itself may not represent wrongful action. This is an important difference. However, regulators do not regulate intent. They determine consequences.Should the high-risk flows continue despite awareness, then the law enforcement agencies will see this as a failure, rather than a technical one.The crypto infrastructure industry has grown to an equal level compared to traditional finance in terms of size, speed, and reach by the year 2025. The crypto industry is in the same category concerning the level of expectation, to an even stricter standard.Currently, cryptocurrency exchanges are sitting right in the middle of all five. Binance, because of its sheer size, is caught up in the middle of the middle.Binance has to operate within hundreds of jurisdictions that come along with their own laws and enforcement standards. This limits scalability.