Binance, the world’s largest cryptocurrency exchange, is set to hire 1,000 new employees this year, with a significant portion of these roles focused on compliance. This move comes at a time when Binance has been escalating efforts to address the increasing regulatory pressures, notably in the US where its compliance outlay is likely to exceed 0 million annually. The information was disclosed by Binance’s Chief Executive Richard Teng to the Bloomberg News in an interview during his trip to New York. Teng, with his experience in being a regulator for many years, stressed the need for close cooperation with governmental institutions. In a discussion with Bloomberg, Teng said, “I’ve been a regulator all my life.” He also pointed out that Binance considers regulation as a crucial factor.
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Binance, the world’s largest cryptocurrency exchange, is set to hire 1,000 new employees this year, with a significant portion of these roles focused on compliance. This move comes at a time when Binance has been escalating efforts to address the increasing regulatory pressures, notably in the US where its compliance outlay is likely to exceed $200 million annually. The information was disclosed by Binance’s Chief Executive Richard Teng to the Bloomberg News in an interview during his trip to New York.
Teng, with his experience in being a regulator for many years, stressed the need for close cooperation with governmental institutions. In a discussion with Bloomberg, Teng said, “I’ve been a regulator all my life.” He also pointed out that Binance considers regulation as a crucial factor. However, he refrained from telling if he had a meeting with the U.S. Securities and Exchange Commission (SEC) on his recent visit. Currently, the SEC is suing Binance, but it was not part of the settlement agreement that the company recently signed with other U. S. agencies.
Binance to Expand Compliance Team After $4.3B U.S. Penalty
This settlement is comprised of a $4.3 billion penalty, formed as a part of the plea deal with the U.S. Department of Justice and other authorities. The deal was arrived at after it was discovered that Binance’s platform had been involved in supporting crimes by crooks as well as terrorists. Therefore, Binance will be subjected to compliance checks by the DOJ and the United States Treasury Department’s Financial Crimes Enforcement Network for years.
To strengthen its compliance activities, Binance intends to increase the number of its compliance staff from 500 to 700 individuals within the current year. Teng has said that Binance has already received 63,000 requests from law enforcement agencies across the globe in 2024, which is an increase of 1,000 requests from the previous year of 58,000 requests.
The same effect has led to an increase in compliance spending, according to Teng who mentioned that it has gone up from $158 million two years ago. Currently, the monitors appointed by the U.S. include Forensic Risk Alliance and Sullivan & Cromwell. Their main duty is to observe and assess the financial statements and transactions of Binance.
Lastly, Binance continues to face legal challenges, including the ongoing lawsuit with the SEC. Despite these issues, the company remains committed to building a secure ecosystem and addressing regulatory concerns.