Key Points
- Binance plans to increase its compliance staff to 700 by the end of 2024.
- The company’s annual compliance costs have grown to more than $200 million.
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With Binance’s annual compliance spend surpassing $200 million, the exchange plans to hire 1,000 employees this year, focusing on compliance roles.
The company’s CEO, Richard Teng, revealed the hiring goals in an interview with Bloomberg News in New York on Wednesday. The hiring initiative comes as Binance faces increased regulatory scrutiny and ongoing oversight by U.S. agencies following a $4.3 billion settlement last year.
Teng, who has worked in the financial regulatory field, emphasized the importance of government agencies and Binance’s efforts to meet regulatory requirements.
The exchange plans to grow its compliance staff from its current 500 employees to 700 by the end of 2024. The expansion reflects the increasing number of law enforcement requests Binance has received, which have reached 63,000 so far this year and 58,000 in 2023.
Teng: “I’ve been a regulator my whole life.”
The company’s compliance spending has grown significantly from $158 million two years ago to more than $200 million annually, including costs associated with U.S.-appointed monitors Forensic Risk Alliance and Sullivan & Cromwell, which are assessing Binance’s financial statements and transaction tracking processes.
Binance continues to face legal challenges, including an ongoing lawsuit from the Securities and Exchange Commission (SEC). In June, a judge ruled that most of the SEC’s lawsuit against Binance and its co-founder Changpeng Zhao could proceed. Teng said Binance will continue to dispute the accusations.
Earlier this year, Teng demanded the release of its compliance officer, Tigran Gambarian, who was detained in Nigeria on charges related to illicit trade.
In April, former Binance CEO Changpeng Zhao pleaded guilty to violating U.S. anti-money laundering laws and was sentenced to four months in prison.
Since taking over as CEO after Zhao’s departure, Teng has implemented several changes at Binance, including adjusting how the company works with prime brokers, tightening requirements for listing new digital tokens, and spinning off a venture division. However, the company has yet to formally designate a global headquarters or release fully audited financial statements.
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