Binance plans to add at least 1,000 new workers, 20% of whom will be assigned to compliance-related positions by the end of 2024.
In an interview with Bloomberg on August 22, Richard Teng, the exchange’s new chief executive who assumed control of Binance in late 2023, discussed these intentions.
He disclosed that the exchange intends to add 1,000 new employees, of which 200 would be added to the compliance department.
Currently, 500 people work at Binance’s compliance department, and the company is said to have spent more than $200 million to comply with regulations, especially those in the U.S.
Teng reported that since the start of 2024, Binance has handled over 63,000 demands from law enforcement, surpassing the 58,000 requests it handled over the entire year of 2023.Â
Binance boosts compliance efforts under U.S. supervision
The recent plea agreement that resulted in a $4.3 billion fine for the exchange between Binance and the U.S. Department of Justice, the Financial Crimes Enforcement Network, and various other U.S. authorities is the source of Binance’s push for compliance.
Binance was charged by the authorities with operating as an unregistered money transmission firm, breaking the Bank Secrecy Act, and neglecting to keep up an efficient anti-money laundering policy.Â
The DoJ and FinCEN will oversee Binance’s compliance efforts for the next five years as part of the agreement. Changpeng Zhao, the founder of Binance, also left his position as CEO.
The monitoring organizations have assigned agents to evaluate Binance’s transaction tracking and financial statements. Teng did concede, though, that Binance was still early in its crypto compliance journey.
The U.S. Securities and Exchange Commission is still pursuing accusations against Binance despite its efforts to comply, alleging that it violated securities laws, misled investors, and improperly managed clients’ money. However, the cryptocurrency exchange has promised to refute the accusations.
