Key points
- Binance will increase its compliance workforce to 700 by the end of 2024.
- The company’s spending on compliance has grown to more than $200 million annually.
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Binance plans to hire 1,000 employees this year, with a focus on compliance roles, as the cryptocurrency exchange’s annual regulatory compliance spending surpasses $200 million.
The company’s chief executive, Richard Teng, revealed the employment goals during an interview with Bloomberg News in New York on Wednesday. The hiring drive comes as Binance faces increased regulatory scrutiny and continued oversight from U.S. agencies following a $4.3 billion settlement last year.
Teng, who has a background in financial regulation, emphasized the importance of government agencies and Binance’s commitment to complying with regulatory requirements.
The exchange plans to expand its compliance workforce to 700 by the end of 2024, up from 500 currently. This expansion reflects the growing number of law enforcement requests Binance receives, which have reached 63,000 so far this year, compared to 58,000 in 2023.
Teng: “I have been a regulator all my life”
The company’s compliance spending has increased significantly, from $158 million two years ago to more than $200 million annually. This spending includes costs associated with U.S.-appointed monitors Forensic Risk Alliance and Sullivan & Cromwell, which are assessing Binance’s financial statements and transaction monitoring processes.
Binance continues to face legal challenges, including an ongoing lawsuit from the Securities and Exchange Commission (SEC). In June, a judge ruled that the bulk of the SEC’s case against Binance and its co-founder Changpeng Zhao could move forward. Teng stated that Binance would continue to contest the allegations.
Earlier this year, Teng He called for the release of the compliance officer Tigran Gambaryan arrested in Nigeria on charges related to illegal transactions.
In April, former Binance CEO Changpeng Zhao was… Sentenced to four months in prisonafter Pleading guilty for violating U.S. anti-money laundering laws.
Since taking over as CEO following Zhao’s departure, Teng has implemented several changes at Binance. These include adjusting how the company works with major brokers, tightening requirements for listing new digital tokens, and spinning off its venture division. However, the company has yet to formally designate a global headquarters or publish fully audited financial statements.
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