Binance plans to hire 1,000 new employees this year, with a substantial focus on compliance roles. A large portion of these hires are specifically aimed at expanding the company’s compliance team from its current 500 members to 700 by the end of 2024.
Chief Executive Richard Teng, who is currently in the United States for talks with monitors and officials, shared these hiring goals in an interview with Bloomberg News in New York on Wednesday.
Focus on compliance
Bloomberg’s report revealed that Binance is estimated to allocate more than $200 million this year for regulatory compliance alone, including expenses related to the US plea deal with the Department of Justice (DOJ) and other agencies.
The 55-year-old executive revealed plans that Binance has seen a surge in requests from law enforcement around the world, with 63,000 inquiries so far this year, compared to 58,000 in 2023.
Compliance-related spending, which was $158 million two years ago, is therefore expected to rise further. Teng also mentioned that US-appointed monitors from Forensic Risk Alliance and Sullivan & Cromwell have begun their oversight, focusing on assessing the company’s financial statements and monitoring transactions. This oversight is still in its early stages, the executive added.
For the uninitiated, Teng served as a senior regulator at the Monetary Authority of Singapore as well as the city-state’s SGX stock exchange. He was also appointed as the chief executive of the Abu Dhabi International Financial Centre regulator.
Highlighting his extensive regulatory experience, Teng said:
“I’ve been a regulator all my life. Government agencies are important.”
However, Teng declined to confirm whether he had met with the Securities and Exchange Commission (SEC) during his current trip, as the securities regulator had sued Binance in a separate lawsuit for allegedly offering financial securities without the necessary registration.
Regulatory issues in the United States
Binance was tidy pay $4.3 billion in fines after a U.S. judge approved the plea deal in February as a settlement with the Justice Department and other U.S. agencies over compliance failures that allowed criminals and terrorist groups to exploit the exchange.
As part of the settlement, Binance will undergo years of compliance monitoring by the U.S. Department of Justice and the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN).
Last week, Binance announced resuming full operations in India after agreeing to a $2.25 million fine with India’s Financial Intelligence Unit. In addition, the exchange reached a $1.75 million settlement with Brazil’s SEC, which had banned its derivatives products in 2020.
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